CTO: 6 things every CEO needs you to know

Business

In the day-to-day of a scale-up, certain skills of a CTO are fundamental to the development and growth of the business as a whole. Whether it’s to facilitate communication, to lead an important area of the company, or even to implement agile development methods, the role the CTO needs to play in a scale-up is as important as the work of a CEO.

Because of this, we’ve prepared an article that details some of these important assignments and also where it talks about what are the main things that every CEO needs his CTO to know. Check it out below.

Understand business and finance

For the scale-up to be significant it is important that the CTO has a broad knowledge of business and finance. This is because the main function of this professional is to help in the innovation and development of solutions that aim to contribute with a market advantage for its client, knowing which are the main challenges in the area and which are the best ways for the success of the business.

In addition, the CTO’s function has had a broader growth on what its responsibilities are, making the professional a true member of the executive team. Because of this, it is sometimes necessary for the CTO to know how to evaluate what the company needs, what the interests of the team, investors and what to do in order for the business to grow.

The CTO also develops strategies to increase revenue and performs a cost-benefit analysis and a return on investment analysis, so being able to manage a budget and a forecast is fundamental. Besides, as the team grows, it is absolutely vital to understand the project’s finances and costs.

Be an agile CTO

Another fundamental requirement for the success of a CTO is to know how to be agile to command the execution of tasks of its technology team. Regardless of the challenge, it is very important that you know how to use agile methodologies and pass this on to your team.

The projects that are managed through the agile methodology are developed through incremental deliveries, this means that in each delivery made to the client, one or more functionalities of the software are developed and not the whole software at once. With this, the work is divided into stages, which after being finalized are sent to the client, and from their feedback, one can improve what has been done and what will be done.

One of the main benefits is focused on the working method, which becomes much more effective and easier to be performed because it is done by software functionality.

Think strategically

Besides knowing how to use agile methodologies, it is important that every CTO thinks strategically about how the technical product will be developed. This is because, according to the technology team assembly and the types of positions involved, certain features need to be prioritized and delegated to more experienced professionals with unique characteristics, increasing the project success rate.

Due to the work requirements of each sector of a technology team, it is very important that the organization of your squad happens in a manner consistent with the needs found in the production of your product. When assembling a team, the main functions are: Product Manager (PM), back-end and front-end developers, a Quality Assurance (QA) professional, UX and UI designer and a DevOps.

Be a communicative CTO and give feedback

Being a professional with the ability to communicate is super important for the growth of your business. Because it is a very technical area, the CTO that can transmit your ideas in a simpler and didactic way tends to have more ease in managing your projects. 

Another important characteristic is knowing how to listen to other people. The CTO needs to fully understand what is needed both on the business and development side and know how to deal with all the challenges in order to transmit them efficiently. Furthermore, adhering to the feedback culture contributes to the progress of the projects.

The idea of conducting feedback is that your development team understands where they are getting it right, making mistakes and even how their behavior can be interpreted by others. In this way, a more pleasant climate is created in the work environment because of this more transparent communication. 

Within IT management, this practice also contributes to the improvement of team performance, avoids possible noise in communication and ties possible loose ends.

Be aware of metrics

Another point of attention that every CTO needs to know is in relation to the team’s monitoring and performance metrics. This is because, during the execution of metrics projects such as KPIs and OKRs are essential to analyze how is the development of some product and the evolution of the team over time. Because of this, it is essential that every CTO knows how to extract the maximum benefits that these metrics can offer and enable your team to also know how to read all the data.

Take on the responsibilities of a CTO

In addition to all the other responsibilities mentioned above, the main one is for the CTO to assume the leadership of the team in a cohesive and efficient way. Because of this, all project planning about which architecture to use, whether it’s safe or not to perform a certain feature, whether there’s how to develop the product in a timely manner are responsibilities of a technical leader. Because of this, the CEO will entrust all this structural part to this professional so that he can focus all his attention on other startup sectors.