This where means "in which".
According to Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 (via The Free Dictionary), under the definition of where:
Usage: It was formerly considered incorrect to use where as a substitute for in which after a noun which did not refer to a place or position, but this use has now become acceptable: we now have a situation where/in which no further action is needed
As for the meaning of the sentence, you got its main idea correctly. (Reading the chat log, I can see that you weren't sure about the structure of the sentence.) You asked, does the sentence mean "deal with demands of every day and also place it at the heart of what the company is doing in"? My answer is yes, more or less.
Here is how you can understand (and parse) the sentence:
It is an art where you’ve got to deal with the demands of every day but at the same time place it strategically at the heart of what the company is doing.
= It is an art. In this art, you've got to [ deal with the demands of every day ] but at the same time [ (you've got to) [ place it strategically at the heart of what the company is doing ] ].