CTOs as Effective Business Leaders
What role does an effective CTO play in their organization, and which skills impact their success? Read on to find out.
One minute insights:
Interpersonal skills are important for successful CTOs, but some lack business acumen
The most effective ways to improve skills include learning from peers and finding a mentor
CTOs should focus more on tech than business, and an influential CTO leads to technically informed business strategy for the organization
Most leaders believe that the CTO should collaborate closely with the CIO
Effective CTOs excel at cross-functional collaboration, and most tech leaders are satisfied with their CTO’s effectiveness
Interpersonal skills are important for successful CTOs, but some lack business acumen
Which leadership skills are most important for CTOs to be successful business leaders? Select up to 3.
Regarding leadership skills that CTOs need to act as successful business leaders, respondents identified interpersonal skills (63%), negotiation skills (55%) and business acumen (52%) as most important.
n = 122
Emotional intelligence 35% | Diplomacy 31% | Communication and presentation skills 25% | People development skills 22% | Staffing/hiring skills 16% | Change management skills 14% | Cultural awareness 11% | None of these 0% | Other 0%
When it comes to leadership skills that CTOs most commonly lack, one-third (33%) of respondents chose business acumen. 32% identified negotiation skills and emotional intelligence.
30% identified interpersonal skills as a common skill gap.
From the same list, which leadership skills do CTOs most commonly lack? Select up to 3.
People development skills 20% | Strategic thinking & foresight 20% | Change management skills 19% | Cultural awareness 18% | Staffing/hiring skills 17% | Strategy setting 16% | Communication and presentation skills 15% | None of these 2% | Other 0%
n = 122
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Question: What’s the most important lesson you’ve learned about being an effective business leader?
Communication is key.
An effective business leader is a front runner, leads by example and believes in strong collaboration with his peers and management.
CTOs can improve skills through peers and mentorship, and most leaders believe a master’s in a relevant field is necessary for success
Most respondents believe that learning from peers (75%) and finding a mentor (72%) are some of the most effective ways for a CTO to improve their skills.
What are the most effective ways for a CTO to improve their skills as a business leader? Select all that apply.
Engage in self-directed learning 34% | None of these 0% | Other 0%
n = 122
61% of respondents believe that CTOs need a master’s degree in a computer-science-related field to be successful.
What educational background do CTOs need to be successful? Select all that apply.
n = 122
None of these 3% | Other* 2%
*Other includes: “engineering,” “experience overrides degree,” and “relevant industry experience”
Question: How can CTOs identify their leadership skill gaps?
Question: What’s the most important lesson you’ve learned about being an effective business leader?
[CTOs] should have a mentor, confidant and 3rd party leadership coach to help them identify these gaps. Additionally they should solicit feedback through various vehicles such as surveys and peer feedback, etc.
Learning can come from any person, team, project. Be open and receptive to the change and this will bring out the best in a person
CTOs should focus more on tech than business, and an influential CTO leads to technically informed business strategy for the organization
More than half (53%) of respondents say a CTO’s work should be somewhat more focused on tech than business, while 29% say it should be an even split between the two .
How much of a CTO’s work should be tech-focused compared to business-focused?
n = 122
Predominantly business-focused 0% | Not sure 0%
More than half (59%) of respondents said that an influential CTO brings a technically informed business strategy to the organization. Other benefits of an influential CTO include cross-functional collaboration (58%), an efficient software development process (50%) and alignment between engineering and company goals (43%).
What benefits does an influential CTO bring to an organization? Select all that apply.
n = 122
More innovation opportunities 25% | Influence on the overall business model 24% | Improved ROI 21% | Smoother IT operations 20% | Better end product and customer experience 18% | Agility 17% | Better engineering employee engagement 14% | Career growth opportunities for engineering staff 13% | Better security 11% | None of these 0% | Other 0%
Which business leaders should CTOs collaborate with most closely? Select up to 3.
The majority of respondents (85%) say that the CIO should be one of the CTO’s closest collaborators.
Other* 2% | None of these 1%
n = 122
*Other includes: “CFO” 57%
Question: How can CTOs identify their leadership skill gaps?
Question: What’s the most important lesson you’ve learned about being an effective business leader?
This is a role that has multiple interactions and needs strong strategic thinking, business acumen and ability to detail out blueprints. In my view, it’s important to reflect on the dimensions of Strategy, Business Sense, Technology Spread, Change management and Converting Strategy to Execution model on every transaction/opportunity and/or at regular cadence to figure out the skill gaps.
Empathy (both up and down direction — to the internal customers and staff) is important to secure support and sponsorship.
Effective CTOs excel at cross-functional collaboration, and most tech leaders are satisfied with their CTO’s effectiveness
58% of respondents pinpointed cross-functional collaboration as a top way to measure the effectiveness of a CTO’s business leadership. 37% identified positive ROI for engineering spend and around one-third (34%) pointed to secure code and execution of company strategy.
What are the top three ways to measure the effectiveness of a CTO as a business leader? Select up to 3.
n = 122
Positive customer experience 30% | Efficient software development process 22% | High retention among engineering team 21% | Robust R&D 15% | Timely product updates 14% | Well-integrated tool stack 13% | None of these 0% | Other 0%
87% of respondents are very or moderately satisfied with their CTO’s current organizational effectiveness. Only 4% expressed dissatisfaction.
How satisfied are you with the CTO’s current effectiveness in your organization?
Note: May not add up to 100% due to rounding
n = 122
Question: What’s the most important lesson you’ve learned about being an effective business leader?
People matter the most. Regardless of the industry or the size of the company, effective leadership always comes down to people. Building strong relationships, understanding individual strengths and motivations, and fostering a positive work environment can lead to high levels of productivity and loyalty.
[Being an effective business leader is] all about managing people, change, expectations and conflicts.
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Respondent Breakdown
Note: May not add up to 100% due to rounding
Respondents: 122 IT and software engineering leaders who are the CTO or work closely with the CTO in their organization