Max Yarchevsky is the CEO and Founder at Boxmode, an award-winning website builder operating across more than 150 countries.
Recently, more and more companies are considering technology innovations as the heart of their businesses' growth. That's why the chief technology officer (CTO) role has advanced within corporate boards. In particular, the specialist's influence on key areas of corporate strategy has increased.
Nowadays, technology-driven companies reckon CTOs as their future opinion leaders responsible for navigating digital business transformations. Additionally, an increasing number of CTOs consider the shift to a chief executive officer (CEO) position as a natural career progression. According to a Korn Ferry survey, 51% of surveyed CTOs would like to become CEOs during their careers.
Can every CTO become a successful CEO? What are the characteristics of an excellent CEO? Let's discuss the main qualities and skills that make a great CTO able to attain a CEO position and lead efficiently.
Toward Becoming A CEO
As a senior executive-level position, a CTO is responsible for implementing the company's technology strategy aligned with the business objectives. At the same time, to be a great CEO, a CTO must be business-minded and an organizational-level leader who understands company operations.
What makes a CTO a successful CEO?
• Tech expertise. The shift to a CEO position may be easier and more natural for a C-level professional with a tech background than an entry-level technology expert. Additionally, potential CEOs can fully understand their company's digital capabilities and possible risks through in-depth technical knowledge. As a survey conducted by PwC revealed, 76% of surveyed CEOs are concerned with their employees' lack of digital skills. Furthermore, 23% of CEOs worry about the digital skills of top leadership executives. Thus, tech-savvy CEOs can eliminate possible technical vulnerabilities and build an excellent team of top executives.
• Personal characteristics and networking skills. The future CEO must think strategically to set his or her company's vision with the corporate board and stakeholders. Personality characteristics such as openness to new ideas, integrity and networking skills are also essential. Successful leaders establish good relationships and promote collaboration between top executives and the board to inform them about internal business processes. Moreover, they build relationships with government officials to shape the external environment and other industry leaders to capitalize on new business opportunities. Another crucial skill is time management. They should keep a life-work balance to prevent exhaustion, frustration and burnout.
• Business-oriented leadership. A CEO must be business-oriented and have experience in cross-functional areas, specifically finance, marketing and management. Typically, CEOs must also have a broader business perspective to develop and communicate strategies effectively. For example, having a deeper understanding of budgeting and financial forecasting can help future CEOs establish distinct goals and effectively lead their companies. Extensive functional experience in all of the spheres outside technology is imperative for CEOs as they take full responsibility for strategy execution and the company.
Becoming a great leader depends on various aspects and particular circumstances. Nevertheless, top executives can understand colleagues' mindsets and establish the correct practices to navigate businesses by attributing the above-mentioned qualities effectively.
Making A Seamless Shift
I'd say the shift from CTO to CEO is usually natural. Nevertheless, two things are crucial to consider to make the process seamless and more organic.
• Self-education. Typically, the role of CTOs involves a massive amount of workload related to data analysis. Understanding the product, marketing data and PR campaign outcomes can help a CTO make grounded decisions about the company's operations and adjust plans if needed. This practice makes it possible for future CEOs to see the “big picture” and effectively articulate analytic leadership.
• Full responsibility. Alongside an excellent leader's primary competencies and personal characteristics, one key aspect differentiates CTOs and CEOs. It is the scale of responsibility each one has. The CEO sets up a strategy and takes responsibility for the whole business, while the obligations of CTOs are limited by their performed functions. Furthermore, when CTOs encounter issues, they can discuss them with other chief executives, board members and even ask the CEO's advice. That's why having a clear understanding of business objectives is pivotal for future CEOs to deploy their expertise while being responsible for the company.
Conclusion
Business model transitions encountering digital advancements require tech executives to build a robust ground to make a seamless shift to CEO. Extensive tech expertise, excellent personal characteristics and broadened functionality compose the base for a seamless transition from a CTO to a CEO position. At the same time, to become a successful CEO, it's crucial to gain cross-functional experience to be prepared to take full responsibility for the business.
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