The modern Chief Technology Officer (CTO) navigates a landscape that demands far more than technical acumen. The crux of CTO success now hinges on an ability to influence, negotiate, and collaborate, thus steering leadership efforts while empowering the team to handle the operational technicalities.
Gone are the days when the title of ‘Resident tech expert’ sufficed to encapsulate the role of the CTO. In a business ecosystem where digital transformation is continuous, a CTO’s prowess is measured by the aptitude to foster strategic relationships that drive meaningful outcomes. Engaging in dialogue with C-suite peers to discern how technology can be harnessed to enhance business value has become a cornerstone of the role.
Jaco Vermeulen, a Portfolio CTO for consultancy BML Digital, articulates this shift eloquently. According to Vermeulen, the task at hand is to “translate business strategy into technology and understand how to implement it in the right way, at the right time, and at the right cost.”
While a profound understanding of technology and its implementation remains a requisite, the onus of managing day-to-day technical operations resides with the CTO’s team. The modern CTO is expected to demystify technology, manage expectations, and communicate realistic outcomes, as Vermeulen elucidates.
James Absalom, Chief Commercial Officer at talent advisory firm ZRG, sheds light on the evolving dynamics of a CTO’s role, noting that 90% of a CTO’s time is dedicated to influencing strategy and catalysing change across the organisation. “While CTOs do need to have a tech and digital background, their most important skills are to do with people, relationships and change management,” Absalom adds.
In this vein, the relationships a CTO cultivates within the executive committee are of paramount importance, notably with the Chief Executive Officer (CEO), Chief HR Officer (CHRO), and Chief Financial Officer (CFO). Absalom contends that liaising with HR is a valuable starting point for newly appointed CTOs to grasp the organisational ethos. “Modern CHROs are change agents, people-focused and enablers for everyone to be successful,” says Absalom. They serve as custodians of company culture, and their insights into the company’s readiness for digital transformation are invaluable.
Vermeulen echoes the importance of a synergistic relationship with the CFO, stating, “Working closely with the CFO helps you translate technical value into financial benefits and payback, which most people understand.” This alignment, Vermeulen suggests, facilitates trust as stakeholders recognize the investment in technology as a prudent step towards future-proofing the business.
The relationship with the CEO is perhaps the most pivotal. Vermeulen notes, “The CEO sets the broader strategic direction, and the CTO acts as a mirror for that, working out how to deliver the strategy through technology.”
Absalom provides a blueprint for cultivating influence within the C-suite, cautioning against an overly aggressive approach. “The focus shouldn’t be on what they can do for me, but what I can do for them,” he advises. He underscores the importance of a deliberate effort to understand and address the concerns of other leaders, suggesting a balanced approach to pushing agendas and making concessions. Building lasting influence, Absalom posits, necessitates a strategy to “look, listen and learn.”
Engagement with the CEO through regular catch-ups, and informal interactions with other C-suite members, are vital steps towards fostering a collaborative ethos. Absalom remarks, “The CTO should be an enabler, not a blocker.” They ought to explore how technology can bolster each function’s objectives, aligning IT initiatives with broader business goals.
Vermeulen warns against getting ensnared in the agendas of other business leaders. “You have to translate everything into technology that works best for the entire organisation, not just individual functions,” he explains. Setting realistic expectations and ensuring alignment on core business goals is crucial.
The essence of success, as explored, revolves around transforming the C-suite into a collaborative powerhouse. Philippe Guenet, Digital Business Performance Coach and Director of Thought Leadership at the International Coaching Federation, encapsulates this sentiment. “Everyone is working together for the good of the company; to drive the business forward,” he states.
Guenet advocates for a culture of extreme collaboration, stating, “You change things by stealth. It’s not a big, top-down change management programme – it’s about creating connections on the ground that grow organically.”
In a realm where technology and business strategies are intertwined, the modern CTO emerges as a linchpin, orchestrating a harmonious interplay between technology and organisational objectives.