The front headlock is a very common position in wrestling. Generally, it is common to see this position after one opponent begins their attack—or shot—on the other opponent. It is a quick transition from defense to offense. In jiu-jitsu, it is a little less common because of the threat of a guillotine choke. However, that is not to say that it is a rare sight, because it is not.
Guillotine chokes are effective, but sometimes difficult to finish. Also, since both opponents are aware of the risk involved, it may be a calculated risk to take the shot and anticipate a guillotine attempt. Obviously, there can be a lot of various scenarios to getting to this position, but there are a few options that can be used to score points and to push your offense forward.
As you look to use arm drags and Russian ties, the front headlock actually becomes more accessible because you force your opponent to think more about protecting his arms and defending the shot. Yanking and tugging and establishing strong grips might actually bring the headlock into range, so you want to have an option for capitalizing on the opportunity. The cross pick is my favorite place to start.