The more I think about it the more that this is a bad idea for numerous reasons.
Firstly I am surprised Hess took the role, it seems an odd thing to do especially if a clause is written into his contract that he can leave for nothing if a managerial job comes along (as touted). It seems that he is happy to take the clubs money until something better comes along.
But on to my main concerns... as Hoadie pointed out, I don't think Hess will be working for free, so he will be draining the clubs limited resources. Also what the hell is the role? If he is developing youth, make him the youth team manager, if he is scouting players make him a scout, the ambiguity makes the managerial position a little more suspect, but I am sure that any propsective employee will be informed about how things work.
Most importantly, as pointed out early, I feel it will have an adverse affect on the type of manager we can attract. In Europe the idea of a manager is essentially a coach with the board / director of football taking many decision who the clubs signs, in Britain things are different and the buck stops with manager in nearly all the first team decision, the two aren't seen as compatatible. This many put more traditional english managers off, but Constantine may fit the bill in that regard. Even as brb suggests that the hierachy is clearly established Hess must has some input or the role is completely pointless, and even if Hess sets out not to get involved all it would take is one comment in the press after a bad result to undermine the manager, and the all hell will break loose. I feel that the job would be pretty hard to follow Hess, seeing as he was/is so popular and a "club legend", but to have him hanging about will make it ten times more difficult, like trying to seduce a new girlfriend with her ex hanging about, and other people telling you how great her ex was!
Rant over... and breathe