This has been talked about for some time, i.e. a more important (formal) role for Butt - who has supposedly been working very closely with Ole from day one anyway.
What he'll do, specifically, is (I guess) to oversee the transition of individual players into the first team, identifying who is ready, who is better off going on loan, and so forth - and, not least, recommend candidates for squad roles that would otherwise be filled by bringing in transfers from without.
The idea is - clearly - to use the player resources (academy products) we already possess as efficiently as possible.
Which is sound. Of course, people whose only interest is signing up whoever's flavour of the month won't be too interested in this.