There is a wealth of data from major organizations, including McKinsey & Company and the World Economic Forum, suggesting how much work will be automated in the next few years.
Whether technology will automate the majority of human-led work isn’t really the core of the problem. There is no argument that automation is happening – it’s simply about who has a strategy for it and who doesn’t.
Over the last few years, many companies have learned the hard way that letting AI and automation run without proper strategy and guidelines in place is a recipe for disaster.
This is where the Chief Automation Officer (CAO) comes in. In this blog, we’ll break down the role of a CAO, they’re day to day responsibilities and why this role has become so important to companies across different industries.
TL;DR
A Chief Automation Officer’s numerous roles can be summed up as supervising, managing, and executing automation and AI processes within an organization, whilst also measuring the performance of these new processes.
The CAO has to work with every department within an organization. They are the glue that holds the entire AI and automation strategy together, which is why there is such value placed on them that they have now become C-Suite-level roles.
But they aren’t a good fit for every organization. That’s where fractional CAOs play a role.
Key Takeaways
- A Chief Automation Officer’s responsibilities include deciding which automation tools to invest in, how to implement them across every team with smooth integration, making data-driven decisions, creating efficiency through automation, and ultimately, serving the long-term business goals of an organization.
- A CAO is a C-suite executive hired mainly in larger organizations to clearly define an automation strategy and implement it throughout a company.
- The CAO role can command an average annual salary of $124,409, excluding equity compensation and additional benefits.
- The CAO role has an incredible number of responsibilities in an organization’s automation strategy, which is why it isn’t easy to hire a good one.
- Even after hiring, it takes at least a few months before seeing tangible results.
- CAOs are great for companies with high revenue, established systems and processes with a stable foundation.
- Fractional CAOs are cheaper alternatives for companies that aren’t large or well-established. They work well when supported by a team beneath them and can deliver good results in a short period.
- Big companies are aware that a solid automation strategy can make a huge difference to their bottom line, which is why many are seeking full-time CAOs.
What does a Chief Automation Officer do every week?
A simplified definition of what a CAO does is that they oversee and execute every aspect of an organization’s automation strategy to meet defined business goals, and in many cases, set new ones.
It’s about taking them to that promised land that automation provides. But what does this actually mean? Let’s go in-depth.
An organization needs guidelines, frameworks, and policies on how automation will help accomplish specific business goals. It’s up to the CAO to define where the company wants to grow. The CAO needs to be up to date on the latest automation trends as a prerequisite.
One of the biggest roles of a CAO is to identify which specific tasks are repetitive and thus beneficial to automate so that limited resources like time can be used where they’re most needed.
Some of those automatable tasks can be document creation, email responses, categorisation and filtration, as well as scheduling meetings to improve efficiency. These are only a few examples of the several use cases.
Read More: 5 Signs Your Organization Needs a Fractional Chief Automation Officer
Core Responsibilities of a CAO
So here are some of the roles and responsibilities of a Chief Automation Officer:
CRM Administration
CRM administration is a key role as it’s up to the CAO to identify the mess within these databases, reduce bloat, and create an organized system with consistent, easy-to-read, and easy-to-access information.
Integration automation
The CAO conducts an audit of how each team utilises automation, allowing them to identify gaps in the system and where fixes are needed. Finding a unified, integrated approach to automation enables a seamless process, thereby achieving larger business goals.
Integration is a non-stop process for the CAO. They have to establish defined processes and standards to ensure compliance and adoption across the board to prevent misalignment between teams. The oversight is done by the CAO.
Read More: Fractional Chief Automation Officer vs. Full-Time Marketing Ops Hire: The $150K Decision
Creating a system of accountability
The big question is accountability during implementation. This is where the CAO comes in, as they help create accountability systems for every team.
This includes the distribution of responsibilities, the setting of deadlines, and keeping a finger on the pulse of ongoing automation progress.
Establishing a culture around automation within the company
This involves working with every team in a company, from marketing and sales to operations, to solve the problem of disconnected workflows. It’s the responsibility of the CAO to create a culture of technological unity, integration, growth and open-mindedness.
It’s also their responsibility to ensure that staff across the board are knowledgeable enough about automation – not only what it is and how it works, but how to correctly implement it.
Strategic and careful execution
Lastly, all of the strategising needs to turn into execution, which is where the CAO comes in. With support from people across different teams, execution is where the vision can become a reality.
You can imagine that all of these responsibilities come with a weight, which is exactly why automation can’t happen in one big sweep.
For a publicly traded company, for example, it might lead to huge media headlines and a potential upward trajectory in its stock price, but it can have devastating consequences if done incorrectly.
That’s why the role of the CAO is as much about human management as it is about technological integration.
To sum it all up, the role of a Chief Automation Officer isn’t just that of a figurehead who demands that specific automation tools be implemented across the board in a company’s operations.
The role can be described as that of a person who seeks to reshape an organisation as smoothly as possible, using automation to achieve long-term business goals and identify new ones.
What is the difference between a Chief Automation Officer and a fractional Chief Automation Officer?
A Chief Automation Officer is a full-time, C-Suite Executive position who is hired to oversee and execute an organisation’s entire automation strategy. They are long-term hires who take the conversation from “we need to automate” to actual automation across the board to achieve specific long-term business goals.
A Fractional Chief Automation Officer (CAO) is a part-time automation expert who works with various teams in an organization. They offer the expertise of a full-time CAO, but with limited hours and considerably less pay.
Read More: Chief Automation Officer (CAO) vs. Fractional Automation Officer (FAO)
They are an appealing option to smaller companies that want to implement automation into their daily operations but can’t afford the expertise of a full-time CAO. They can also deliver results in just a few months.
Final Thoughts
As you can see, there are very specific cases where a Chief Automation Officer is needed, and it mostly applies to large companies with larger budgets. That’s why the option of Fr-CAO or Fractional Chief Automation Officer is so appealing.
Smaller companies find it hard to define their ROI clearly, and can have trouble with CRM management. Fractional CAOs are also great for those who want to make strategic, not impulsive, automation decisions for their company.
At the Automation Strategy Group, we help companies seeking to implement efficient automation to achieve their long-term business goals.
Our fractional CAO service includes a sweeping audit of an organization’s revenue operations before moving on to how automation is utilised for day-to-day operations.
From there, we create a clear automation roadmap that aligns with the company’s long-term goals through data-driven decisions.
We also take a measured, qualitative approach to implementing our automation strategy, ensuring greater clarity and less confusion across teams.
This includes an integrated team of automation engineers, CRM experts, and RevOps at a fraction of the cost of a full-time CAO.
We design automation systems to reduce manual work and operational delays, supporting your business’s growth. Business growth is the ultimate goal, and we believe that automation is the only way to scale both quickly and efficiently.
Frequently Asked Questions
What are the KPIs (Key Performance Indicators) measured by CAOs?
CAOs play a key role in defining KPIs within an organization. Some of the KPIs defined by the CAO include time saved, cost saved, revenue generated, employee satisfaction, and error rate reduction.
When do companies choose a Fractional CAO over a full-time CAO?
Companies usually choose fractional CAOs over full-time CAOs when they have a smaller budget but still want the benefits of implementing automation clearly and concisely in their day-to-day operations. Fractional CAOs are part-time workers, but they offer the same expertise as full-time CAOs with a fraction of the cost.
Why are companies investing heavily in hiring Chief Automation Officers?
Many organizations know that automation is the key to unlocking larger business goals. The problem is that very few know how to implement a clear automation strategy that serves these business goals. That’s why there has been increasing demand in the last few years to hire a top-level executive to oversee the automation strategy.
Can CAOs implement automation strategies without careful consideration?
No, CAOs need to be careful and intentional about automation roll-outs. Sweeping changes to years of organizational structure, made without caution, can be a risky and impulsive proposition. A good, qualified CAO will be measured and considerate when implementing automation to minimise friction in the long run.
What background does a CAO have?
A Chief Automation Officer needs to have a strong background to qualify for the role, which is why it isn’t easy to find high-quality CAOs. Some of the background roles that a CAO should have can include IT management, Business Administration, Operational management, Engineering (AI), Data Science, and Management consultation with a digital focus