Great leaders are responsible for the company’s growth. However, the question remains as to how CEOs and CTOs differ. Even if these views do not directly conflict, they must work together for the system to function properly.
C-suite executives are critical to a company’s success, particularly large firms and organizations. When it comes to making crucial business choices, these top-level executives are in charge. The chief executive officer and the chief technology officer are two other critical roles.
What are their responsibilities in the company? Which of these is different? What overlaps between their roles? To begin, let’s take a look at these issues.
Understanding the C-Suite roles of CEO and CTO
Both executives have a lot riding on their ability to do their jobs well. They do this while being subjected to extreme stress and great expectations.
When they accomplish their duties well, they may help the company grow and become more profitable. Let’s take a closer look at what these professions include before we get into their tasks.
What Is The Role Of A Chief Executive Officer?
A company’s CEO is the highest-ranking executive in the organization. You’ll be responsible for making key choices that will help the organization realize its objectives in this position.
Now, the responsibilities of a CEO might vary greatly from one company to the next. However, the person steering the company’s wheel is normally responsible for this. In order to succeed, you’ll have to become engaged in operational strategy, capital use, and general organizational structure.
It may seem to be a prestigious job to desire. Being a CEO, on the other hand, is no simple task. On Fortune.com, a 22 percent rise was found in the job turnover rate.
This data only covered the first half of the year in 2021. As a result, Russell 3000 businesses will have an 11.6 percent CEO turnover rate in 2020. The COVID-19 pandemic has been believed to be the cause of this as leaders deal with the difficulties of the circumstance.
ESGAUGE and Heidrick & Struggles performed the research for the study, which The Conference Board compiled. A total of 1,095 of the largest publicly traded firms in 14 countries have been monitored since 2018. Is being CEO the same as owning a business? The answer varies according to the size of the business in question.
It is not uncommon for a company’s chief operating officer to be the company’s founder or CEO. But in major organizations, the CEO is more often chosen by the board of directors.
What Is a Chief technology officer?
The speed of technological change in the corporate world is accelerating at an alarming rate. This is why corporations need to set up a system where one person oversees everything. To do this, a company hires a chief technology officer (CTO).
There were a lot of dot.com and tech firms that had this status in the 1990s. Organizations are being compelled to change to keep up with the rapid advancement of technology. CTOs have held this position since then, making them the most senior technologist in a company. The chief technical officer is sometimes referred to as CTO.
In charge of the company’s technology demands and development, this executive is in charge. In certain cases, the chief technology officer is in charge of the company’s research and development efforts.
Many firms’ chief information officers (CIOs) doubled as chief technology officers (CTOs). However, with the rapid advancement of technology, the need for a CTO has emerged.
When the CIO post becomes available, the company’s internal IT requirements will be handled by the CIO. On the other side, CTOs are now accountable for externally scaling the company’s technology. Products and services that facilitate communication between the business and its customers and suppliers are also discussed.
On the other hand, CIOs are responsible for both internal and external technology demands in firms that lack a dedicated CIO. Startups and small enterprises, which depend on technology to succeed, are particularly vulnerable to this.
CEO vs. CTO: Responsibilities and other aspects of being the leader
It’s time to compare the duties of a CEO and a CTO now that their jobs have been clearly defined. Regardless of the size of the organization, the structure of the corporation, or the workplace culture, these jobs have a set of responsibilities.
How a CEO Spends a Normal Day
CEOs spend 47% of their time at work, according to a Harvard Business Review research published in 2018. They devote 61% of their working time to face-to-face meetings while on duty. Are there any adjustments in the face of the pandemic’s need to distance oneself from others?
HBR published a follow-up piece in August 2021 pointing up the importance of CEOs managing their time well. They should put a limited resource to use where it is most needed. Is there anything else a CEO is responsible for?
- Develop and execute the company’s vision and purpose via executive-level decision-making.
- Be in charge of the organization’s entire operational strategy planning and execution.
- In the course of a particular cycle, assess whether or not objectives were met and what milestones were reached.
- Intervene as a point of contact between the board of directors and the rest of the company’s management, if necessary
- Meet with other executives to get advice and simplify the execution of all plans throughout the company.
- Consider the possibility of expanding or acquiring your firm.
- Improve your brand’s image and your personal growth by participating in industry-related events and activities.
- The company representative should attend any public or private events that are significant to the firm.
Key performance indicators (KPIs) for CEOs
Managing or evaluating the performance of employees and managers are two very distinct things. Organizations can still track certain indicators.
However, the review must be completed within a reasonable time frame, such as a period of one year. Here are a few more things to keep in mind while putting up your assessment.
1. Initiation and Execution of the Vision
The firm should have a long-term strategy before the beginning of each fiscal year. With this comes a list of goals and objectives that the CEO and other executives want to accomplish together. This means that when it comes time to review the CEO’s performance, the firm notes how the CEO oversees the company’s whole long-term plan. Here are a few things to ask yourself before you begin:
- Has the CEO set SMART objectives for the organization shortly?
- Why did the strategy work? It didn’t work out.
- How well have internal and external stakeholders (e.g., customers) understood the CEO’s vision and strategy?
- What was the CEO’s approach to managing the company’s entire operations, including the work environment and the spirits of employees?
- How well did the CEO accomplish the company’s goals and vision?
2. Human Resource Development
A company’s most valuable asset is its workforce. As the company’s ultimate leader, the CEO must take advantage of this.
Acquiring and constructing an effective workforce is the responsibility of the CEO. The CEO must also establish an atmosphere where every employee is able to develop and achieve at their highest level.
3. Finances and the Management of Resources
One of the most critical aspects of a CEO’s performance is his or her ability to bring in enough financial plans and resources. The firm will not be able to prosper without enough financial resources for capital expansion.
How well was the CEO’s ability to raise the required funds?
Are they able to connect and collaborate with the relevant service providers that value the business?
The company’s market knowledge and financial resources may have been enhanced if the CEO had learned new skills.
The Chief Technology Officer’s Role in Retrospect
The efficiency, productivity, and profitability that technology brings to enterprises are immeasurable. As a result, the chief technology officer is responsible for making sure the organization can keep up with the rapid pace of change.
A CTO’s daily to-do list
What does a CTO do to help the company achieve a competitive advantage? Businesses of all sizes and sectors have various requirements, and this is a given. However, the chief technology officer must carry out responsibilities that apply to all firms.
Managing the company’s use of cutting-edge technology to improve goods and services is one of the key responsibilities of the Chief Technology Officer (CTO). The executive in question is also in charge of its technological development plans and their actualization.
The Chief Technology Officer (CTO) is responsible for ensuring that the technology used in the company’s essential activities is properly maintained and optimized. The term “existing tech assets” here refers to things like websites, mobile devices, and software.
In order to create new goods and services, this executive has to analyze consumer data, competitive analysis, and market research. When it comes to product creation and innovation, it’s achieved via collaborative efforts with suppliers and other parties with stakes.
An R&D Supervisor — To effectively manage the company’s technology budget, resources, and requirements, the CTO must collaborate closely with the rest of the executive team. This includes data management and security, disaster recovery, and IT continuity.
Evaluation of a Chief Technology Officer’s Contribution
This executive has a solid technical background. It’s also important to note that as a senior executive, the chief technology officer’s performance must be evaluated in the context of other factors as well.
In the same way that a CEO is evaluated, the review should span a certain time. It should also describe the leader’s overall responsibilities. A CTO’s assessment should take into account the following points.
The chief technology officer (CTO) serves as the organization’s technology advocate. As a result, the job entails developing a plan that the whole organization shares. Here are a few ways to get you started on assessing the CTO’s performance.
Is the use of technology to achieve goals and objectives worthwhile?
Is the company’s current technology and innovation by its business strategy as a whole?
Is your existing technology comparable to that of your competitors? The question is whether or not it is relevant to the market today.
Is technology being used to its full potential?
Tech Environments both within and outside of the company Satisfaction
The Chief Technology Officer (CTO) is the go-to person for all tech-related matters. An executive must have a strategy to deal with any problems that arise, whether related to server outages, website crashes, or cybersecurity.
Others look up to the chief technology officer because of their pioneering efforts in technology. Some stakeholders also expect the CTO to prepare possible training sessions. Everybody participating with the company’s technology may use it to its fullest extent due to this arrangement.
The CTO must be up to speed on the latest technology developments and news. They must combine these concepts into a viable development paradigm. Remember that new technology trends come and go at a rapid pace. If your business does not catch up, you risk falling behind your competition.
Look at these items when you’re looking to assess the CTO and see whether they’ve done their job well.
Conditions of Work that Encourage Well-Being and Safety
As a result, the chief technology officer is also responsible for recruiting and retaining talented employees in some firms. The executive is responsible for selecting the best candidates and ensuring that each appointment benefits the business.
In addition, the CTO is responsible for creating an atmosphere that is both supportive and healthy for the company’s employees. As a result, every employee will be a long-term team member. As a result, production rises since everyone has been taught to work on projects.
Only organizations with a CTO who oversees R&D and engineering may benefit from this. As a result, it is important to consider team culture and morale as a criterion when evaluating the effectiveness of a CTO.
CEO vs. CTO: What Is the Difference and How Do I Become One?
Are you the CEO of a business? By now, you’ve probably risen to the position of CEO or CTO. These high-ranking executive roles can be won by people who aren’t self-starters. To get your creative juices flowing, consider the following suggestions.
The first step is to complete your education.
Exceptions such as Mark Zuckerberg and Bill Gates do exist. However, most Fortune 500 corporations insist on seeing proof of appropriate education.
More and more companies are looking for executives with business, accounting, or economics degrees to run their businesses. While an MBA or equivalent management degree might be beneficial, it isn’t always necessary.
Then, how do you become a CTO? A degree in computer science, IT, or engineering may be required. These classes will help you learn about various technological viewpoints.
Alternatively, you might pursue a master’s degree in the same area. For example, a Ph.D. or Master’s degree might also be beneficial. Finally, a CTO position is more likely to be filled if you have an MBA. Although it isn’t a requirement, it is if the firm thinks it to be.
2. Acquire appropriate knowledge
So, get out there and start working to improve your prospects of advancing to the position of CEO or CTO. Getting a promotion to a senior-level management role is a solid way to advance your career if you are an entry-level employee starting. To get to the top, you must learn the ins and outs of the company.
If you want to become a C-suite executive, you’ll need at least 10 years of experience. You may be able to shorten your training time if your performance is exceptional.
3. Become more knowledgeable as you go along.
It would help if you never stopped learning new things like a professional, as the saying goes. If you want to become better at what you do, you should go to seminars, workshops, and other activities.
It’s important to keep in mind that these activities will broaden your portfolio and help you build relationships with industry leaders. As you work your way up the corporate ladder, it’s possible to find mentors who provide guidance and support.
4. Start a company of your own
It’s much easier said than done. Getting a company off the ground may not be as easy as you think. However, starting your own business is the surest path to becoming a CEO or CTO.
When you start your own business, you have complete control over the organization’s vision, culture, and direction. This is an opportunity for you to consider your technology achievements and devise new approaches.