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Special Careers Issue
C O L U M N  
Guest Column

The Making of a Technology CEO

  August 6, 2001
  By John Davies


Many believe that the CEO of a technology company can rise to that position only from the ranks of engineering, sales or marketing. Looking at many of today's tech CEOs, you may agree. Many also believe that CIOs don't have the background necessary to be tech CEOs. However, I believe CIOs make the best tech CEOs.



There are three routes to becoming a CEO: Get promoted from within, get hired by another company or start your own company. I can't say much about the first two paths, but since I founded Rockliffe, I can talk about the third.

Evolution

I spent eight years as the CIO for two Silicon Valley start-ups where I learned about technology, management, politics, business, manufacturing, accounting and sales. But understanding the limitations and problems associated with many software products was my most valuable gain. With this understanding, I imagined new technologies for improving and streamlining an organization. Some ideas, like network print servers and VoIP, were turned into products by others and today represent significant markets with multiple vendors.

Then, after some painful experiences with early e-mail technologies, specifically Microsoft Mail and Lotus cc:Mail, I had a great idea. Those file-sharing architectures had clearly been stretched to their limits, and customers were paying the price. My company was working on client/server development tools at the time. E-mail was the primary application on the Internet, and I knew the e-mail-software market opportunities would be huge. Client/server messaging technologies based on open Internet protocols were superior and more elegant than legacy e-mail's file-sharing architecture. I also realized that Microsoft's new operating system, Windows NT, would be a major Internet server platform, alongside Unix. That idea evolved into Rockliffe's e-mail product, MailSite.

Stepping Up

Becoming a CEO is never easy. After all, a successful technology CEO must harness financial and human capital to develop, market and deliver a superior product or service.

Now consider the CIO's job: Find, purchase or develop, and implement the most cost-effective applications for improving customers' productivity. To be successful, the CIO must understand the purpose, operation and interrelationship of all business departments. Herein lies the special competitive advantage a CIO brings, an advantage rarely gained by the pure engineering, sales or marketing professional.

CIOs are also often adept at product management, customer services, research and development, finance, accounting, operations and management. That's not to say CIOs have everything it takes to be a tech CEO. CIOs rarely have sales and marketing experience. A CIO's customers are captive internal departments where competition is a nonissue. And although CIOs must understand the sales process to deliver successful CRM implementations, meeting a sales quota is altogether different--and is an absolutely invaluable experience. Moving from IT into sales may seem impossible, but it's not. Spend one or two years in engineering sales or consulting, then move into a more formal sales position.

Many technologists see marketing as a black art practiced primarily by playing golf with clients and entertaining on the company's dime. But marketing is a precise science that can be conceptualized by even the most logical engineer.

So, all you CIOs out there thinking about becoming CEOs, go for it! Consider taking sales and marketing courses. A part-time or full-time MBA program will provide the theory you need. But don't let anyone tell you you're not qualified or experienced enough. Your qualifications are just as relevant--if not more so -- than those of people who've come from the ranks of engineering, sales and marketing.

Originally from Southport, England, John Davies came to the United States in 1986 and founded Rockliffe in 1995. He is on the executive council of the Software Development Forum in San Jose, Calif.


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