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5 keys to understanding the role of the new leadership position, the Chief Transformation Officer (CTO)

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Learn about the key aspects of a CTO, the new kind of executive in charge of leading the transformation of the organization.

Due to the complexity of the current challenges, a new executive position is needed to lead the change in the organization: the Chief Transformation Officer (CTO).

1. Response of corporations to the digital revolution

Some of the most important companies have begun to employ CTOs in order to transform their business models to adapt to the digital era.

In 2015, only 27% of executives believed that the digital transformation was going to have a great impact on their businesses. Today 75% of executives thinks so.

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2015

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2019

2. A CTO should not be confused with the Technology Director

The profile of the CTO does not require technological expertisse, but rather to have solid experience in leading a company through different situations and business challenges.

Effective CTOs inspire employees and act as role models for the kind of behavior needed to motivate and integrate change.

3. Market new ideas

The main goal of transformation and change in an organization is growth. The main task of the CTO is to take advantage of the organizational change to promote new business models.

4. The CTO is the face of a company’s transformation

A CTO has the responsibility of setting goals, making day-to-day decisions, and making sure that the work is done in time.

Also, a CTO is responsible of developing strategic initiatives for the company, of ‘setting the tone’ for work, motivating workers, making sure that the demands of daily work are met, and of challenging traditional views.

5. The CTO works hand in hand with HR

A CTO has to make sure that the organization is in ‘good shape’ in order to be able to cope with and sustain a long-term effort.

Likewise, a CTO can be actively involved in the recruitment, training, and retention processes.

Available at: www.mckinsey.com