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Chief Technology Officers are most closely aligned with tech startups and software developers. But those are far from the only use cases for adding a chief technical officer to the C-suite.
The reality is that every company today is a technology company. At the very least, the company likely has a website, computerized customer contact data, and a SaaS software solution. Plus, as any conscientious business owner will tell you, there are those niggling worries that can keep them up at night — things like wondering whether the company is vulnerable to a cybersecurity attack that will release their customers’ private data to the universe.
Does that mean you need to hire a full-time Chief Technology Officer or Chief Information Officer? Not necessarily. But you definitely need someone who has the strategic insights and decision-making power to manage the rapidly evolving technology landscape. If you don’t yet need or can’t justify hiring a full-time CTO, a part-time or fractional CTO or CIO can oversee your tech needs at a far lower cost.
But, first, let’s look at the role of a CTO in technology management.
What is a Chief Technology Officer?
Both Chief Technology Officers and Chief Information Officers are senior executives responsible for overseeing an organization’s technology strategy. The difference? The CIO typically focuses on improving processes within the company day-to-day, while the CTO focuses on using technology to better serve customers through product development and improvement.
These chief technical officers are typically expected to:
- Create a technology roadmap that aligns with overall business goals, ensuring that technological needs are met and that the digital transformation drives value.
- Develop a business strategy for collecting, storing, and analyzing data to gain insights into your customers, operations, and market trends.
- Hire, train, and lead the technology team.
- Oversee technology initiatives to ensure they are completed on time, within budget, and to the desired quality standards.
- Research technology trends and evaluate new technologies to identify opportunities for innovation that will give you a competitive advantage in the marketplace.
- Identify and mitigate risks associated with technology, such as cybersecurity threats and system failures.
In short, tech execs are responsible for ensuring an organization’s technology infrastructure is effective, efficient, and aligned with its business needs.
How a Successful CTO Adds Value to Non-Tech Companies
Here are a few times when companies not squarely in the technology space nevertheless understand that adding CTO positions to the senior executive ranks:
- Manufacturing: A Chief Technology Officer can help a manufacturing company optimize its production processes using automation and robotics, improve quality control with the latest technological advancements in analytics, and enhance supply chain management with technology solutions.
- Healthcare: A strong IT department is critical to managing electronic medical records, protecting patients’ private healthcare data, and complying with complex regulatory requirements.
- Retail: A CTO can help a retailer improve the customer experience through omnichannel commerce, online sales, and loyalty program information systems. They also are critical to cybersecurity and using information technology to optimize inventory management and supply chain operations.
If You’re Not Sure You’re Ready for a Full-Time CTO
While every business can benefit from an experienced technology leader, not all organizations have the need or ability to hire a full-time person who has the years of experience and the leadership skills needed for the CTO job. That’s when a part-time or fractional CTO or CIO can be the right answer.
An InterimExecs RED Team fractional CTO or CIO can be on-site in as little as 48 hours and, because the fractional executive is not an employee, there is no long-term commitment. Either side can terminate the contract with 30 days’ notice — without worrying about severance payments or other costs associated with letting go of a permanent employee.
Fractional executives have followed the same career path as full-time tech execs. The only difference? They choose to work less than full-time at a particular organization. Often they will serve in a chief technical role for several clients at the same time.
When a Fractional CTO Is the Right Answer
A few instances when contracting with an experienced executive on a short-term or part-time basis is the right answer for an organization:
When the Company Can’t Justify the Cost of a Full-Time CTO
Fractional CTOs and CIOs can be a cost-effective alternative, especially for smaller organizations or those with limited budgets. Because you are buying only a fraction of the executive’s time — a few hours a day or a few days a week —you can afford a rock star CTO. And, because the interim or fractional executive is not an employee, there is no need to pay for vacation days, sick leave, or health insurance.
For Short-Term Initiatives or Project Management
If you have a short-term project requiring specialized technical expertise, such as implementing a new ERP system or migrating to the cloud, an interim CTO can provide focused leadership for the duration of the project. And then, because the fractional CTO is not an employee, they will leave when the work is done — no severance, no golden parachute, no hard feelings.
When the Company Experiences a Temporary Overload
During periods of rapid growth or peak business activity, extra help is needed. That’s when a fractional CTO who will work part-time for as long as you need — or even an interim CTO who will work full-time over the short term — can help manage increased workloads and ensure the company’s technology infrastructure remains efficient and scalable.
When Specialized Knowledge is Needed
If you need expertise in a specific industry or geographic region, it’s easy to find an experienced fractional CTO with a proven track record of success in that niche.
Organizational Change or Restructuring
If your organization is undergoing a significant change, such as a merger, acquisition, or restructuring, a fractional CTO can provide critical stability and continuity during the transition process and then stay on to help integrate the tech stacks.
New Technology Implementation
An experienced fractional CTO can oversee the implementation process and ensure the organization is well-prepared for the changes.
Finding the Best Fit for Your Company
A fractional or part-time CTO can deliver on clearly defined objectives for significantly less than it would cost to employ a full-time executive.
If you’re considering hiring a fractional CTO, here are some of the benefits you should expect:
Efficient Internal Processes and Security
A fractional CTO in a technology leadership role will select the technologies that best serve the company’s business objectives and secure the company’s networks and systems.
Moving Tech Teams Forward
A company may have a dedicated team that works on their product. They may also dedicate another team for troubleshooting of that product, but they may not have the budget for a full-time executive to oversee the work of all stakeholders. A fractional CTO can step in to bridge this gap. They can set up roadmaps and take on decision-making while mentoring the IT team to handle more complex tasks.
Creating Strategic Partnerships
InterimExecs RED Team fractional CTOs have a long track record of success in their industries. They are respected and well-connected with suppliers, vendors, and other companies. Their connections can help businesses build relationships with potential vendors or partners. As such, a fractional CTO becomes a strategic partner of the company since they can provide additional value to the business in ways that extend beyond their technological acumen. Utilizing a CTO’s network can prove powerful for businesses that are looking to seriously transition into a digital environment and would appreciate valuable connections to do so.
Are You Ready for a Part-Time Chief Technology Officer?
Reach out to us for a confidential conversation about how an InterimExecs RED Team fractional or interim CTO or CIO can help your organization manage the challenges of the digital age.
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