Great Engineers Make Poor CTOs: A Hard Truth About Technical Leadership

Building successful software companies requires exceptional talent at every level.

But after founding multiple tech companies and investing in dozens more, I've noticed a persistent misconception that can doom engineering organizations: promoting your best engineer to CTO.

Here's why that's often a mistake, and what you should look for instead.

The Engineer's Mindset vs. The Leader's Vision

Your star engineers are often deeply passionate about technical excellence.

They obsess over clean code, optimal architectures, and elegant solutions.

Their dedication to technical perfection is admirable and necessary for building robust systems.

I've worked with brilliant engineers who could architect complex systems in their sleep.

They could debate the merits of different frameworks for hours and optimize code until it sang.

But when it came to understanding customer problems or translating business needs into technical solutions, they struggled mightily.

The hard truth? Technical excellence alone doesn't prepare you for technical leadership. In fact, the very traits that make someone an exceptional engineer can sometimes work against them in a CTO role.

Strong engineers often get lost in technical details while missing the broader business context. When you're a CTO, you need to think beyond the code.

What Makes a Great CTO?

A successful CTO needs to be product-focused first, technology-focused second.

When I was building Stackify, I had to constantly balance technical decisions with business outcomes.

It wasn't about using the newest technology or the most elegant solution – it was about delivering value to our customers efficiently.

The best CTOs I know excel at:

Understanding customer problems deeply and empathizing with their challenges

Translating complex business challenges into actionable technical solutions

Thinking strategically about product direction and market opportunities

Communicating effectively with non-technical stakeholders, from board members to sales teams

Building and inspiring engineering teams to deliver consistent results

Making pragmatic technology decisions that align with business goals

Balancing technical debt with feature delivery and market needs

The reality is that the they aren't necessarily the strongest coders on their team.

Instead, they excel at understanding the bigger picture and driving outcomes that matter to the business.

The Business-Technology Translation Layer

One of the most critical roles of a CTO is serving as a translation layer between business needs and technical execution. This requires a unique blend of skills that many top engineers haven't developed.

At Stackify, I focused on understanding our customers' monitoring and troubleshooting challenges first.

The specific technologies we used to solve those problems were secondary. My job wasn't to write the best code - it was to ensure we built the right solutions for our market.

I've seen brilliant engineers struggle with this aspect of leadership. They often want to solve technical problems with technical solutions, missing the business context that should drive decision-making.

The technology stack should serve the business goals, not the other way around.

Building vs. Leading

Great engineers love building things.

Great CTOs love building teams that build great things.

This distinction is crucial for understanding why technical excellence doesn't always translate to leadership success.

When I transitioned from hands-on development to technical leadership, I had to fundamentally shift my mindset. Success wasn't measured by the code I wrote, but by the outcomes my team delivered. This meant focusing on:

Developing and mentoring team members

Creating processes that enabled consistent delivery

Building a culture of technical excellence

Making strategic decisions about technology investments

Managing technical debt and resource allocation

Your best engineers might struggle with this transition.

They often want to dive deep into technical problems rather than focus on strategy, team building, and business alignment. This isn't a character flaw – it's simply a different skill set and mindset.

The Path Forward

If you're looking to promote your star engineer to CTO, or if you're a technical leader making this transition yourself, ask these crucial questions:

Can they think strategically about product and business needs?

Are they comfortable stepping back from day-to-day coding?

Do they naturally gravitate toward understanding customer problems?

Can they inspire and lead teams effectively?

Are they able to make pragmatic technical decisions that balance multiple business constraints?

Can they communicate complex technical concepts to non-technical stakeholders?

Technical skills are important, but they're just table stakes for technical leadership.

The real value comes from the ability to bridge the gap between business needs and technical execution.

The Bottom Line

Your CTO should be the best at solving customer problems with technology, not necessarily the best at writing code. This distinction is crucial for building successful technical organizations.

Leadership requires a fundamentally different skillset than engineering.

Understanding this distinction is crucial for building successful technical organizations and avoiding the common pitfall of promoting based solely on technical ability.

You're not just building technology - you're building a business that leverages technology to solve real problems.

That's what great CTOs understand, and it's why technical excellence alone isn't enough.

Want the full story? This article is based on my latest Product Driven episode.

🎥 Watch the full episode: CTOs Must Lead, Not Just Code

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Matt Watson is the host of Product Driven and co-founder of Full Scale, a global staffing company that helps businesses build and scale their engineering, finance, marketing, and admin teams. A three-time founder, he grew VinSolutions to $30M ARR before a $150M exit, later sold Stackify in 2021, and continues to share insights from his entrepreneurial journey through his podcast and this newsletter.

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