When To Hire a CTO

Panic can set in around making decisions about technology in your business. Small software issues grow and become real problems. Customers and vendors demand higher-tech solutions. Your whole leadership team knows the right technology can solve these issues, but you’re not sure where to get started. So the natural thought is, “Is it time to hire a CTO?” Knowing when to hire a CTO is an important step as your company prepares to get to that next level. You have options.

What Is The Role Of the CTO?

A CTO (Chief Technology Officer) is the company’s leader of all things technology, which includes internal software and systems, as well as products and digital services offered to customers. Whether your business hires developers and other technology experts or outsources those, your CTO will plan and oversee those activities.

Do All Companies Need a CTO?

Not all companies need a CTO. Smaller companies can often get away with outsourcing their IT management with a Managed Service Provider (MSP). Companies that don’t use technology other than off-the-shelf software or business technology can get away without a CTO. But as soon as a business starts customizing software, integrating multiple software platforms, or launching new technology to stay ahead of the competition, hiring -- or outsourcing -- a CTO will quickly become a wise investment.

COVID-19 really jump-started the use of technology for just about every business out there. Companies allowed employees to work remotely -- which isn’t likely to change. They converted products and services to digital versions. They created whole new lines of revenue rooted in technology. That means companies are spending more on technology. Having a CTO will help manage that change and growth in a positive way.

How do you know when to pull the trigger on this hire?

Knowing When To Hire a CTO

There are several indicators or reasons to hire a CTO. Here are a few:

• Opportunity: Your business needs new technology to stay ahead of the competition or up to date with your customers’ needs -- new opportunities. When the need for new technology is obvious, having a CTO to map out the plans is vital.
• Uncertainty: Maybe you’re not sure if technology is the solution to achieving your goals or solving operational problems. In that case, working with a fractional CTO -- on a part-time basis -- can help you identify opportunities to leverage technology, or not.
• Necessity: There’s no way around it. Your business has grown, but the supporting technology can’t keep up. Your older technology might even be getting in the way or creating obstacles, making success and efficiency harder on your organization. A CTO will help you navigate through this.
• Focus: Your CEO and CFO spend too much time being the CTO and need to focus on their areas of expertise. A CTO will take over those duties and free up the rest of the leadership team to do what they do best.
• Leadership: You have multiple groups of technology experts, including IT, software, development, and product groups. That can cause breakdowns in communication, direction, and collaboration. A CTO will pull all of that together.

Where Can I Get a Good CTO?

You have two basic options when it comes to hiring a CTO. The first is to start recruiting and hiring a full-time CTO. The second option is to work with a fractional CTO, a CTO-for-hire. If this is your first time hiring a CTO, the fractional option is a great way to figure out how a CTO will fit into your organization without spending the money on the full salary and benefits package -- and you still get the expertise you need to manage your technology strategies.

Need help figuring this out? Contact us today, and we’ll work with you to get the right solution in place for your business.