This article was contributed by Adelina Chalmers, who has worked in the last 13 years with CTOs in companies as small as 10 and as big as 100,000 people.
Navigating board meetings as a Chief Technology Officer (CTO) can often feel like translating a foreign language. Despite presenting game-changing technology projects, CTOs frequently face the frustrating reality of their visions being dismissed—not because the projects lack merit, but because "the board just didn't grasp the concept."
The Problem: Lost in Translation
Imagine a CTO at a firm with 4,000 employees who spent nine arduous months attempting to secure board approval for a critical product redesign. Despite the obvious need, the board repeatedly vetoed the proposal. The issue? Communication.
During board meetings, the CTO explained: "The current firmware is outdated, and our next version aims to enhance user-friendliness. We need $5 million to adopt embedded operating systems and utilize the free software that companies like ARM offer."
However, the board's response was lukewarm at best. They bombarded the CTO with basic questions about the software and firmware, revealing a fundamental mistrust in his technical judgment. This scenario morphed into what felt like micromanagement, with the board delving into minute details that seemed irrelevant to the overarching decision.
The Misunderstanding: Focusing on the How, Not the Why
The board's interrogation covered bizarre angles—from the rationale behind ARM's free software to speculative IP risks and even the physical characteristics of firmware updates like color and shape. This line of questioning stemmed from a deeper issue: a lack of understanding of the business implications of not proceeding with the redesign.
A New Approach: Business Impact First
What the CTO initially presented was technically sound but lacked a clear connection to business outcomes. Here’s how the message could be transformed:
Original Statement: "The firmware is outdated; we need $5 million for embedded systems to improve usability."
Revised Pitch: "Each year, we inconvenience our clients for six months and spend $2 million during software upgrades. A staggering 93% of our customers expect continuous improvements, and 88% find our current update model disruptive. By investing $5 million, we can shift to remotely upgradable software, reducing the upgrade window from six months to one week, eliminating the $2 million annual expense, and significantly boosting customer satisfaction and market retention."
Strategic Communication: Tying It All Together
Armed with a narrative that highlighted direct business impacts rather than just technical enhancements, the CTO reframed his proposal:
Problem Identification: The current manual update process is costly and disruptive.
Solution Overview: Transition to remotely upgradable software to save costs and improve efficiency.
Business Benefits: Enhanced customer satisfaction, reduced costs, and maintained market share.
Risk Mitigation: Adoption of proven technology with contingency plans for potential project overruns.
Call to Action: Urgent approval needed to avoid falling behind competitors and to capitalize on immediate cost savings.
This revamped approach transformed the board's perception, leading to an instant approval of the budget. The shift in communication was so impactful that the board members themselves were compelled to ask about the sudden change in clarity.
Conclusion: The Key to Approval Is Business Impact
The takeaway for CTOs and technology leaders is clear: Tailor your communications to emphasize the business impact of your technological initiatives. Focus on how the technology will benefit the business in terms the board cares about—profit, risk, and competitive advantage.
By adopting this strategy, not only will you secure the necessary approvals more efficiently, but you'll also establish yourself as a visionary leader who speaks the language of business just as fluently as technology.