Tag Archive: CEO

1. Navigating the Challenges Faced by CEOs in Managing Technology

   June 5, 2025 12:30 pm Leave a Comment

   

   In today’s rapidly evolving digital landscape, CEOs are encountering a myriad of challenges related to technology. As organizations increasingly rely on technological solutions to streamline operations, enhance productivity, and drive innovation, the role of CEO has become more complex. Leaders must not only understand these technological tools and solutions, but also implement strategies that align them with business goals while addressing risks and uncertainties that come with such advancements.

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   Keeping Up with Innovation

   In 2023, the technology industry accounted for 40% of all global patent applications. This indicates the sector’s role in contributing to global innovation. With such a significant share, technology remains a primary focus for companies worldwide. Furthermore, 30% of all technology patent applications focused on software ranging from applications and platforms to cybersecurity solutions.  The large number of technology-related patent applications highlights ongoing advancements and change within the field.

   One of the foremost challenges for CEOs is the relentless pace at which technology evolves. From artificial intelligence (AI) to blockchain, cloud computing, and Internet of Things (IoT), the technological landscape changes so rapidly that staying informed about emerging trends can feel overwhelming. CEOs must prioritize staying ahead of the curve, dedicating time and resources to understanding these advancements while ensuring their organizations adapt efficiently.

   Many organizations face the dilemma of integrating modern technology into legacy systems. CEOs often grapple with deciding whether to overhaul aging infrastructure or invest in solutions that enhance existing systems. This decision is not merely technical but deeply strategic, as it has significant implications for cost, time, and operational disruption.

   Gartner’s Hype Cycle is a graphical representation that illustrates how new technologies evolve over time, from initial hype to mainstream adoption. This representation can aid in setting expectations not only from the CEO but the entire leadership team within an organization.

   Risk of Harnessing Data

   The exponential growth of data presents both opportunities and challenges.  CEOs are expected to leverage big data to make informed decisions. However, managing data effectively requires a robust infrastructure, skilled personnel, and ethical considerations. Striking the balance between data utilization and privacy concerns is a delicate task that often falls squarely on the shoulders of leadership.

   With the dependence on digital tools comes the heightened risk of cyber threats. CEOs must ensure that their organizations prioritize cybersecurity while navigating an increasingly sophisticated threat landscape. From ransomware to phishing attacks, the potential for disruption is ever-present, requiring CEOs to invest in preventative measures and foster a culture of vigilance.

   Talent Acquisition

   As technology becomes a cornerstone of business operations, the demand for professionals with expertise in these areas grows. CEOs face challenges in attracting and retaining talent who possess the necessary technical skills to leverage these tools effectively. Moreover, fostering a culture of continuous learning within the organization is crucial to ensuring that employees stay adept at using evolving technological solutions.

   In addition, CEOs must address the generational shifts within the workforce. Younger employees may be more adept at navigating modern technologies, while older employees may require additional training to adapt. Bridging this gap and ensuring cohesive collaboration across generations is a leadership challenge that requires careful planning and engagement.

   Ethical & Social Responsibility

   As technology plays an increasingly important role in business operations, CEOs must address its ethical implications. Issues such as AI bias, data privacy, and job displacement due to automation require thoughtful leadership. CEOs are tasked with fostering transparency and ensuring that their organizations use technology responsibility and ethically.

   While many of these responsibilities have always existed (protecting privacy, prohibiting harmful actions, protecting intellectual property, etc.) they can become more complex and challenging to manage given the rate at which technology changes and the adoption of these new technologies within the organization. Careful and deliberate consideration must be given not only to those technologies which are new to the organization but also those that already exist.

   Financial

   Over the course of 2025, global technology spend is projected to reach $4.5 – $5.6 trillion constituting a growth rate between 5.6% – 9.8%. This growth is fueled by cybersecurity, cloud computing, generative AI (genAI), modernization of the legacy systems, and the need for IT related services. The challenge is balancing the financial and operational impacts technology will have on their organization.

   Adopting new technological solutions often requires substantial financial investment. CEOs are challenged with balancing the cost of implementation with the expected return on investment. Prioritizing investments while maintaining fiscal discipline is a critical aspect of navigating the management of technology.

   CEOs must evaluate the impact of technology on their organizations. Not all solutions deliver immediate or tangible results. And the pressure to demonstrate value can create tension in decision-making processes. Clear metrics and a strategic approach are essential in assessing technology’s worth to the business.

   Is It Time for a CIO/CTO?

   The integration of technology into organizational operations is both a necessity and a challenge. CEOs are tasked with understanding and addressing the complexities of technological innovation while balancing financial, ethical, and operational considerations. Success in navigating these challenges requires adaptability, strategic foresight, and a commitment to fostering a culture of learning and responsibility.

   Having a skilled technology navigator can greatly increase a CEOs chance for success in navigating these challenges. This may come in the form of a Chief Information Officer (CIO) and/or a Chief Technology Officer (CTO). A CIO will typically focus on internal IT operations, aligning technology with business goals while a CTO will focus on external technology, product development and innovation.

   Below are a few indicators that point to the time being right in considering a technology leader.

   CIO	vs.	CTO
   Strategic Technology Driver When technology is no longer a support but a key driver of business strategy.		Technical Expertise Gap Leadership lacks the technical expertise needed to navigate innovative and complex technologies.
   Lack of IT Vision If the organization is struggling to define a clear IT roadmap.		Strategic Technology Leadership The organization needs the ability to evaluate and implement new technologies.
   Rapid Growth As an organization grows, its IT infrastructure and needs become more complex.		Scaling Challenges Rapid scaling or significant growth necessitating the need to manage infrastructure and large-scale deployments.
   Increased Users/Departments When the number of users and departments relying on IT services grows.		Product Development & Launch Support in guiding technology decisions, ensuring alignment with goals by overseeing technical execution.
   Complex Technology Dependencies If the business relies heavily on technology for critical operations.		Digital Transformation If an organization is undergoing significant digital transformation or investing heavily in technology.
   Cybersecurity Concerns Need in developing and implementing a robust cybersecurity strategy to protect data and systems from threats		Growing Engineering Team Support is needed in developing and mentoring an engineering team to ensure they have the skills and knowledge to succeed.
   Industry Disruptions If the industry is experiencing rapid disruption from technology.		Competitive Disadvantage An organization is falling behind competitors because of a lack of technical expertise.
   IT Optimization Organization needs help to optimize IT operations, reduce costs, and improve efficiency.		Strategic Technology Planning Help in developing a long-term technology strategy that aligns with business goals and achieving objectives.

   In an era where technology is no longer a luxury but a cornerstone of a competitive advantage, CEOs who rise to meet these challenges will propel their organizations toward sustained growth and innovation. The journey is fraught with obstacles, but the rewards are transformative, laying the foundation for a resilient and future-ready business landscape.

   Matt Craig, Director

2. Communication: Finance and IT Groups

   August 25, 2023 11:00 am Leave a Comment

   We have been supporting clients across many industries and sizes for as many years. Our group’s collective experience is estimated at over 150 years, in fact. Our team has worked at notable consulting companies including Ernst & Young, Deloitte, Alvarez and Marsal, Cognizant, and Cap Gemini to name just a few. This coupled with team members that have worked in multiple industries and companies such as FIS, Jack Henry, BNSF, Electronic Data Systems, Lloyds of London, and the like provides us a strong base of knowledge and many lessons learned that can be shared. We support both the IT needs of the company and the finance and accounting needs, which allows us to understand both sides of the situation.

   This post draws upon that experience base to offer up ways to bridge the gaps identified with the end goal of improving business performance.

   Trends Impacting Communication

   The trends we have seen that have been causing the gaps to arise include:

   • The sheer pace of technology changes – where new options exist for business applications like CRM, ERP and BI, networks, and computing. With Artificial Intelligence tools hitting the mainstream – we are experiencing an even faster pace of change.
   • The rapid increase of Cyber Security related issues – the proliferation of ransomware, sophisticated phishing attempts, and the availability of Cyber Security insurance to help companies mitigate risk.
   • The CFO’s role in many companies has been emerging – and extending to covering the Information Technology group as well as traditional finance, accounting, and treasury functions.
   • CFOs have not typically been trained in technology topics through their education and work experience – and computer science majors have not been classically trained on finance and accounting topics.
   • The building technology debt in the company – due to under investment over the years in key applications typically expressed as, “the third-party vendor finally says it will ‘no longer support application x no matter what the price,’” and other examples.
   • The changing roles in IT with the importance placed on Chief Technology Officers (CTOs) versus the Chief Information Officers (CIOs) the various shades of CIOs.
   • The emergence of cloud computing – where companies are now ‘renting’ their compute capacity versus having a fixed asset approach with internal data center and servers. Companies like AWS and Microsoft have been experts at providing these services while providing a complex set of pricing and terms that can challenge the brightest CFO and CIO.

   Challenges: The Root of Communication Problems

   The problems we typically encounter can be broken down into several categories:

   1. Communications mismatch – the finance and accounting terminology does not match up with the technology terminology.
   2. IT groups not viewed as strategic to the business – CIOs/CTOs not having a seat at the executive table shield them from knowing the strategic direction the company is taking.
   3. CFOs uncomfortable with understanding the technology terms – and how to ask intelligent questions.
   4. IT leader talks in terms that only another tech person would understand – causing confusion and frustration. Just trying to explain Agile software development process to anyone not involved or trained on the technique!

   How to Bridge the Communication Gap

   Now for the payoff: ways to bridge the gaps we have collected over the years. No one size fits all so take the ones that meet the needs of the organization and jettison the rest.

   1. Give the IT leader a seat at the strategic table – this allows the vision to be more closely mapped to the current technology footprint. This doesn’t always require an organizational change, i.e., IT leader reporting to CEO. Just invite them into the strategic planning discussions.
   2. CFO needs to invest some time in understanding IT trends, terms and how it affects the current IT portfolio at the company. This can come from attending periodic third-party sessions on technology trends, reading magazines like CIO Magazine, Wired, etc. It can also come from understanding the current IT portfolio for the company and associated ‘road map’ if available.
   3. The CFO and CIO/CTO (or IT leader) need to invest time educating each other on their perspectives. Maybe use some outside facilitation to help enable and hold each person accountable. Take baby steps in defining some key metrics that have both IT and Financial metrics. Have each person share and explain the reporting they use to communicate to the organization.
   4. CIO/CTO (IT leader) needs to invest some time understanding the financials for the company, and how things like forecasting are performed at the cursory level. This may include taking an external class on accounting, finance, and/or the like. It could also include attending third-party presentations on economic forecasts or things like merger & acquisition classes (how companies are valued).

   How can we help you?

   If any of these ideas strike a chord with you, you are not alone. We have tools and examples of how to bridge the gaps that we are more than happy to share with you and your teams. It would be nice if there was just one book to read or one website to review that has all the answers you need. Unfortunately, that is rarely the case. Core Catalysts can certainly give you a healthy head start, however.

   All the problem areas can be overcome in our experience, and this always leads to business improvement results. We stake our reputation on it. Just ask our clients.