Part 4: When the CTO is the Right Choice

As we wrap up our 4-part series on hiring a technology consulting partner, it’s time to explore the scenarios where bringing a CTO on board might be the best move for your business. While consultancies offer fantastic flexibility and expertise, there are moments when a dedicated CTO can drive your company’s tech strategy forward in ways a consultancy can’t always match. 

Here are a few situations where a CTO might be a better fit than a consulting partner:

• You’re a tech-driven company with big plans for building new products.
• You’re on a solid growth trajectory and planning to hire and scale quickly.
• Your tech stack is highly specific or complex, requiring deep, specialized knowledge.
• You already have a lot of full-time engineers and need someone to lead them.
• Your company’s success depends on a tight integration between your tech and internal processes, with a need for long-term alignment.

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In this series:

1. Part 1: When To Hire A Technology Partner
2. Part 2: Evaluating a Technology Partner
3. Part 3: Getting the Most Out of Your Project
4. Part 4: When the CTO is the Right Choice (This post)

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Qualities of a Modern CTO

Hiring a CTO isn’t just about filling a role, though. The world constantly changes, so you want to make sure you’ve got a steady hand on the wheel. We call this leader the Modern CTO. The Modern CTO can navigate the changes in business and tech standards and tools while fostering a strong team culture and enabling steady growth. It’s a lot to ask for, but finding the right person is worth it.

Want to find your own Modern CTO? Here are some essential qualities to look out for: 

Hands-On and Technical: A CTO should be both hands-on and deeply technical, especially for companies valued at $300 million or below. As the company grows, their leadership skills become increasingly important to manage larger teams and more complex projects. If your industry demands a highly specialized or complex technology stack, a CTO with deep industry knowledge can tailor your tech strategies to meet these needs.

Awareness and Readiness: Your CTO should have a solid understanding of what their team is working on, even if they’re not involved in every minute detail. This means they can make informed decisions and provide meaningful guidance at any time, even when teams are under pressure and tight timelines. 

Delegation Skills: Effective delegation is crucial. A great CTO can distribute tasks and responsibilities while keeping the team engaged and supportive. This balance helps maintain productivity and morale.

Experience: For businesses aiming to break into the upper middle market with significant hiring and expansion plans, a CTO can help manage and scale your technology infrastructure effectively. So make sure you’re hiring a CTO with a proven track record of doing just that! If you’re deciding between a consultancy with a lot of startup experience and a green CTO, you’re probably better off with the consultancy in the short term while continuing to search for the right CTO. Or, use the project to develop an internal tech leader who can grow into the role. 

Flexible and Collaborative: As the saying goes, "Hold strong opinions loosely." A modern CTO should have informed opinions but remain open to team input and adjust if a better approach is suggested. This flexibility fosters a collaborative and adaptive environment where the best ideas can thrive. If your team feels comfortable asking questions, brainstorming freely, and even pushing back on decisions, that’s a good sign. As long as mutual respect is there, you’ve got a great thing going. 

Decisiveness: Flexibility and openness are a must, but so is the ability to make the final call when it counts. The Modern CTO is decisive, making essential decisions swiftly and confidently. In fast-paced environments, being confident and timely with decisions helps avoid delays and keeps momentum going.

Cultural Fit: It’s essential that your CTO aligns with your company’s culture and long-term strategic goals. They should be someone who not only understands your vision but is also passionate about driving it forward. They’ll help you choose the right tech, teams, and strategies that align with your company’s goals, from people to process to profit. 

Balancing a CTO with Consultancies

Hiring a CTO doesn’t mean abandoning the idea of working with consultancies. In fact, a CTO can enhance your relationship with a consultancy by providing strategic direction and ensuring that any external expertise aligns with your overall tech strategy. Here’s how you can make the most of both:

• Special Projects: Use consultancies for specific projects that require specialized skills or additional workforce. Your CTO can oversee these projects to ensure they fit within your broader tech roadmap.
• Overburdened Teams: When your in-house team is stretched thin, a consultancy can provide the extra support needed to keep everything running smoothly without overwhelming your staff.
• Objective Expertise: Even with a dedicated CTO, a consultancy can offer an outside perspective that helps identify areas for improvement and innovation that might not be immediately obvious to your internal team.

Ready to dive deeper into deciding between a CTO and a consultancy? Check out the full whitepaper [here] for comprehensive insights and detailed guidance.

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