Does my tech business really need a CTO?
The risks involved in not having a Chief Technology Officer on your board
Quite simply, the answer is yes, you do. But read on – and we’ll explain why in more detail. A CTO brings unrivalled and specialist tech expertise to a business, coupled with leadership and accountability. If you’re a company that’s heavily reliant on technology or has a complex tech infrastructure, you leave yourself open to risk without an expert on the board. Let’s take a look at the potential pitfalls:
Your business won’t have a tech leader
Without technical expertise at executive level, you will miss out on the guidance and leadership that your organisation needs. It’s difficult for a board member, who’s not a tech specialist, to make informed decisions on tech-related matters. A tech leader can also set goals and guide your tech team, helping them prioritise tasks and creating greater efficiency and a clearer direction for all.
Your strategies could be misaligned
Creating a strategic business objective is one thing. But if it’s at odds with your tech strategy, you will have misalignment, leading to conflict, confusion, rising costs and potential failure. Having a CTO to work hand-in-hand with other board members, you will find communication allows for harmonious strategic decision making which can only be of benefit to your company.
You’ll find it harder to attract top talent
When it comes to attracting the best tech talent, potential candidates may look on a company without a CTO with mistrust and presume that there will be a lack of clarity and little focus on their career development. Having a CTO on the board ensures your company commands respect. They will also future-proof your team and be a valuable asset in team retention, providing guidance and support to your engineers and developers.
Your tech strategy will lack direction
Strategic planning for technology is one of the key responsibilities for a CTO. They will develop and implement a tech strategy for your company, drawing on their specialist knowledge and experience. Without a CTO on the exec, you could find your plans lack clarity and it will be harder to use technology to achieve your goals.
Your tech could become outdated
Technology is constantly evolving. A CTO will ensure your company stays up-to-date with the latest development so you remain competitive and relevant. More than that, a CTO will ensure that you’re taking full advantage of new tech so you stay ahead of the curve. As a tech company, you really can’t afford to be seen as out dated.
Your security could be at risk
A security breach has serious implications for any company – but even more so for a tech organisation. A CTO is responsible for ensuring your systems and data are secure – protecting your business and even more importantly, your reputation. Without a CTO, your company may be at increased risk of security breaches and data loss, and who on your board will want to take responsibility for that?
You won’t be seen as innovative
Innovation drives success in a tech business. A CTO will keep your company up-to-date with emerging technologies and cutting edge developments – and explore ways for your organisation to exploit them. Without a CTO, you stand at risk of missing valuable opportunities to innovate and grow your business – and tarnish your reputation as a leader in your marketplace.
Focus will be on cost cutting – not investment in tech for growth
A non-tech leader will concentrate on cost efficiencies in a business so KPIs will focus on reducing tech costs rather than looking at where investment can be made – even if a company is in growth mode. This can limit the potential of your business in the future. A tech leader, conversely, will look where investment in tech will facilitate innovation of new service areas or enhance efficiencies, to boost your bottom line.
You’ll work less efficiently
Your technology infrastructure is a key driver in how efficiently your business runs on a day-to-day basis. A CTO will optimise your tech and processes, supporting and boosting efficiency and productivity – particularly important for your development team who will thrive with a strong tech leader at the helm. Without a CTO, you could struggle to get the most from your tech and see negative effects in your efficiency levels.
Communication will be weaker
A CTO can act as a central point of contact, ensuring lines of communication between team members – as well as board members – are strong, organised and clear. Without an advocate for this role in your company, communication can break down as your team are unsure who to direct questions or requests to.
Team morale can be squashed
Your team of engineers and developers need a leader. Without a CTO they will lack direction, feel unsupported and in turn, undervalued. A CTO can champion their cause, create a sense of unity and ensure your tech team gel and work well together, delivering the best results for your business.
Project changes may stop you in your tracks
Project scope and priorities can change at any time – it’s a fact of life. A CTO is perfectly placed to evaluate these changes and help your team navigate the shift smoothly. Without a CTO leading the way, teams often struggle to adapt to changes so progress can be hampered or even halted.
But what if we don’t have the budget for a full-time CTO?
For smaller businesses, a full-time CTO may be an investment that’s just not possible. However without a CTO’s involvement, the risks are there. A fractional CTO (FCTO) can be a valuable support to your team. Flexible and targeted, they can give your business the leadership it needs on vital tech issues, when you need it. Essentially, working with a FCTO gives you all the benefits of full-time CTO without the full-time expense.
Scryla specialise in placing Fractional CTO’s with businesses. With the expertise to focus on your tech, they bring with them the specialist knowledge and management skills to give your business the direction it needs. Get in touch today – we’d love to talk through your requirements and see how one of our expert FCTOs could help your business.