We’re often approached by ambitious mid-market CEOs looking to transform their business with IT and technology. The question of how to do it depends on the particular business. (When a salesperson tells you their product is exactly what you need to fix all your problems, hide your wallet.) What all these businesses have in common, however, is the need for an experienced, business-minded IT expert in the C-suite who can lead the transformation.
Another question quickly arises: What kind of expert? Does your mid-market business need a CIO, a CTO, or a CISO? Let’s take you briefly through each position so you can make an informed decision.
What is a CIO?
A Chief Information Officer (CIO) is a senior-level position with ultimate responsibility for technology, teams, and suppliers. CIOs provide clear oversight of systems, processes, data reporting, and staff — when it comes to IT and technology, the buck stops with them.
CIOs will actively contribute to C-suite discussions on higher-level decisions and will ensure the IT solutions support the business strategy. Their focus is on business improvements, risk management, and cybersecurity, rather than delivering the day-to-day technology.
In addition, CIOs drive integration, automation, and transformation projects, such as an ERP or custom software development.
CIOs have decades of experience in all aspects of technology and IT, so they tend to earn high salaries. (See our article on CIO salaries.)
What is a CTO?
A Chief Technology Officer (CTO) is also a senior-level position, someone with deep business and IT experience who can create, lead, and deliver technology strategies and solutions to accelerate business growth. The CTO, however, will be more involved with delivering technology initiatives, for example overseeing the development of custom software or apps.
For organizations with both a CIO and CTO, the CIO is usually senior. But the positions should be complementary, especially if a business is looking to grow. And while there will of course be overlap in terms of skillsets, they are two different positions, with different career paths.
CTOs also have decades of experience and tend to earn high salaries, if not quite as high as a CIO. (See our article on how to determine CTO salaries.)
What is a CISO?
A Chief Information Security Officer (CISO) is also a senior-level executive, and usually works closely with a CIO and/or a CTO. As a mid-market business becomes larger and more complex, it often needs a specialist to own and lead cybersecurity, so they hire a CISO.
A CISO is specifically responsible for the security and safekeeping of technology, information, and systems. They communicate risk mitigation strategies to their senior colleagues in plain English, while driving the leadership and cultural changes that make security a reality.
This means that CISOs have ownership of cybersecurity for a business’s infrastructure, applications, and systems and processes. They manage information risk and regulatory compliance, as well as disaster recovery and business continuity planning.
CISOs are highly specialized and in-demand, so they too command high salaries.
Paying for a CIO, CTO, or CISO
Hopefully you now have a better idea of the differences between the positions and what your own business may need. There is also the question of how to pay for them. Mid-market businesses often don’t want, don’t need, or can’t find a full-time CIO, CTO, or CISO. That’s why Freeman Clarke uses the fractional or part-time model. (See our article, Why Fractional?)
We are not a recruitment firm. We’re a team of 85 senior-level CIOs, CTOs, and CISOs who can join your senior leadership team to own and deliver your IT strategy and cybersecurity on a fractional basis.
This means that we bring transformational business benefits at a fraction of the cost. Our expert technology leaders create, lead, and deliver systems and digital strategies that will drive growth and innovation, help you seize new opportunities, and ensure you’re safe from cyber concerns, without harming your bottom line.
The range and experience of our IT leaders also means that you’re not limited to the strict definition of any of the above roles. We get you the IT leader you need, which might draw together different aspects of a CIO, CTO, or CISO.
If you’d like to learn how we’ve helped mid-market businesses like yours, read our client stories. Or Contact Us and we’ll be in touch for an informal conversation.
When You Hire a Freeman Clarke Principal, How Does It Actually Work?
What happens when you hire a Freeman Clarke IT leader, or “principal?” How do we actually work with our mid-market clients to drive growth? Our own CEO Graeme Freeman explains what to expect.
A Chief Information Security Officer is a senior-level executive responsible for protecting your data and intellectual property, and your information systems and processes. They understand your business strategy, your legal and market requirements, and your business’s risk appetite, and they ensure that these are all met.
They are also responsible for planning and implementing a business’s IT security strategy to make security decisions, to assess risk, and to keep the C-suite apprised of risk and risk management.
More broadly, they provide leadership and management throughout the business at an IT, process, and cultural level.
The fact is that security has become an enormous concern in our lives, and we need to keep our eyes open.
In a business the problem is magnified ten- or a hundred-fold. Aside from email and phone scams, which target businesses as well as individuals, there is a security risk every time your business hires a new employee or vendor, inks a new contract, connects your network to a new device, outsources any task, even makes a simple financial transaction. The risk is bigger when you take on investors or merge with or acquire another company.
This is why many companies hire a CISO. This is not the person who will help your company streamline its systems and processes or guide it through an ERP project. Nor is it the person who will set up the firewalls or install anti-virus software. Instead, a CISO is a strategic hire to put security at the heart of your business systems and processes.
CISOs become especially valuable as businesses become larger and more established. The job of security and risk management will simply become too big for the CIO or CTO. Another way to look at it is that the CISO frees up the CIO to implement the IT and technology that will help the business grow.
Why does it need to be someone in the C-suite? Because security is not simply a tech matter. Many of the highest-profile hacks have affected companies with highly expert teams and the most sophisticated security technology. Good security requires a commercially-minded leader who fully understands the detailed technical issues rather than just a technical expert.
A serious security lapse could cause your business catastrophic financial and reputational damage. A minor security lapse will cost you time and money. Any kind of lapse may have legal implications, resulting in lawsuits and fines.
On the other hand, addressing security concerns can provide a marketing advantage. In many industries, companies select suppliers who have impressive cybersecurity and compliance certifications. Thus having a credible leader like a CISO enables you to gain new clients, or secure funding, or generally raise your business’s profile.
CISOs are highly specialized and in-demand, so they command high salaries. Many mid-market businesses simply can’t afford to pay another executive’s full salary. Or they may be in an in-between stage where the security concerns are too time-consuming for a CIO but don’t yet merit a full-time salary. That’s why we often suggest a “fractional” or part-time CISO.
If you have questions about CISOs — or any other aspect of IT and technology, feel free to get in touch. We’re always up for a no-strings conversation about cybersecurity or any other aspect of running a mid-market business.
The right CTO will help a business leader turn their vision into a reality. Find out how our expert CTOs can make a difference to your mid-market business.
A Chief Technology Officer, or CTO, is a critical role in a mid-market business. A CTO is a C-suite position accountable for just about all technology in the company, from hardware to software to teams and suppliers. Reporting to the CEO, the CTO drives innovation, efficiency, and effectiveness across the business.
A “Virtual CTO” or “vCTO” has similar responsibilities, but they are usually more limited in scope. While a full-time CTO makes a long-term commitment to a business, a vCTO will be brought in for a specific task, such managing an ERP project, or shoring up cybersecurity and compliance.
Virtual CTOs have become more common during the pandemic, as many businesses found themselves with specific immediate needs when offices were closed. However, for an ambitious business with medium- to long-term growth plans, a vCTO may not be the best choice.
On the other hand, a fractional CTO will take responsibility for the day-to-day as well as larger projects. A Virtual CTO will, by definition, have a certain distance from the business. But a fractional CTO can deal with the people, process, and technology issues of a mid-market company.
“Fractional” simply means “part-time.” It is an executive position, with the full responsibilities of a CTO. It just provides more flexibility and affordability for a mid-market company.
(Click here for more details on the role of the CTO.)
Who needs a Virtual CTO?
Mid-market companies will turn to vCTOs for a number of reasons. They may need a CTO with very specific experience. Or perhaps the business could use an outsider’s perspective on its technology and growth plans. One very common reason is money: since vCTOs are by definition part-time and/or contract employees, they cost less than a regular CTO.
Fractional CTOs, however, provide benefits in the short-, medium-, and long-term, while remaining an affordable choice.
What do Virtual CTO Services include?
The services a vCTO provides will be specific to the needs of the company. They may take a broader view, providing an overall vision or strategy. Or they may spearhead a specific project, such as a front-end redesign, or purchasing and implementing new software. Whatever the brief, a good CTO needs excellent technical skills and communication skills, as they have to clarify their role to investors, the executive team, and staff.
How much does a Virtual CTO cost?
The salary of a full-time CTO will range from $140,000 to $280,000 per year, depending on the experience of the candidate, the role, and geography. A Virtual CTO will be less expensive, but the exact cost will depend upon the length and complexity of the assignment. A fractional CTO, however, can ramp up or down as needed.
Are there many CTO jobs?
There are hundreds of open CTO positions across the US, but the competition is high. It can be a challenging, secure, and well-paying job, with the possibility of making a real difference to a company, so it’s a sought-after position.
Job seekers should also consider fractional CTO positions, which offer more flexibility and variety. At Freeman Clarke, we specialize in fractional CTOs. Click here to get in touch.
“The Freeman-Clarke model has worked well for us at an important time of change. Our fractional CTO’s professionalism and ‘can-do’ approach meant delivery of a number of critical projects which have brought our IT systems up to date. Our CTO’s ability to pick up on the complex technology of our industry, combined with his IT capabilities, has resulted in a stronger, more secure IT environment.”
Why Freeman Clarke?
Quality. Our unique model provides a cost-effective way to get the best talent in the business on your team. We hand-pick IT leaders on the basis of their skills and experience and their ability to fit in to the culture of a mid-market business like yours.
Business-minded. We are business people, and we speak your language. Our IT strategies are always tuned to the needs of the business and financial realities.
Independence. Our CTOs are completely independent. We make no arrangements with suppliers, so you can know that our recommendations are completely objective.
Flexibility. We don’t insist on an upfront payment or commitment to a six-figure sum. We demonstrate value every day, or else just tell us to stop immediately. It’s as simple as that.
Affordability. Our people are the best in the business, but as you take a fraction of their time the price point is affordable. We set our prices appropriate to the mid-market and we don’t cross-sell or upsell.
AChief Technology Officer (CTO)is responsible for technology, teams, and suppliers. They drive innovation and efficiency across the business.
Sometimes a company may be between CTOs and will hire a CTO as a stopgap. Thus an interim CTO, by definition, will be replaced by a permanent hire. This can create confusion and a lack of continuity for a company.
A better choice may be a fractional CTO. “Fractional” simply means “flexible” and can mean “part-time.” But a fractional CTO can stay with your business for years, providing strategy and continuity. And because they work on a fractional basis, it’s more affordable and cost-effective than a permanent hire.
Who needs to hire an interim CTO?
There are a number of situations that may drive a CEO to seek an interim CTO. Sometimes a company looks for an interim CTO to develop bespoke software. Or a start-up may need technology leadership to provide credibility to investors. A mid-market company may want an interim CTO to help it through a period of rapid growth. Finally, a company may seek an interim CTO to keep the IT and technology working well until they can find someone permanent.
In our experience, a fractional CTO has been a better choice in every one of these scenarios. An interim CTO, by definition, is for the short-term; a fractional CTO can help with the same short-term issues, but their long-term commitment means a more comprehensive and strategic approach. And you aren’t stuck with a contract: a fractional CTO can ramp up or down depending upon your needs.
Managing business systems, including the processes, people, and technology needed to make them work well (such as training, data standards, and documentation)
Delivery of digital initiatives that likely encompass customers, partners and suppliers
Ensuring compliance and risk management (for example, GDPR, PCI, ISO27001).
How much do CTO Interim Services cost?
Surveys by recruitment companies indicate a pay range from $140,000 to $280,000 per year, depending on the scope of the job and location. An interim CTO will often work on a day-rate, and that can add up quite quickly.
A fractional CTO, in contrast, is a fixed, predictable cost that works out to be (of course) a fraction of a total salary. At Freeman Clarke, we specialize in fractional CTOs, from a few days per month to full-time, or even entire teams. (Click here to get in touch.)
How to hire an Interim CTO
There is no shortage of agencies who specialize in interim CTOs. When considering an interim CTO, consider the following points:
Why have they chosen the interim lifestyle? Will that make it difficult for them to engage with your company’s culture and values?
Do they have an interest in the long-term viability of their work?
When their interim is complete, will they still be available for questions?
Do they have arrangements with the suppliers they recommend, or are they independent?
If any of these questions are not answered to your satisfaction, it is likely your business is better off with a fractional CTO.
“Freeman Clarke aligned our IT with our business strategy. Our systems now provide much greater support for our staff, reducing wasted time, costs, and problems. The culture and practices within our IT team have changed radically, and they are now a critical contributor to our success.”
Why Freeman Clarke?
Quality. Our unique model provides a cost-effective way to get the best talent in the business on your team. We hand-pick IT leaders on the basis of their skills and experience and their ability to fit into the culture of a mid-market business like yours.
Business-minded. We are business people, and we speak your language. Our IT strategies are always tuned to the needs of the business and commercial realities.
Independence. Our CTOs are completely independent. We make no arrangements with suppliers, so you can know that our recommendations are completely objective.
Flexibility. We don’t insist on an upfront payment or commitment to a six-figure sum. We demonstrate value every day, or else just tell us to stop immediately. It’s as simple as that.
Affordability. Our people are the best in the business, but as you take a fraction of their time the price point is affordable. We set our prices appropriate to the mid-market and we don’t cross-sell or upsell.
A Chief Technology Officer (CTO) is responsible for technology, teams and suppliers. They drive innovation and efficiency across the business.
What is the salary for CTOs in the US?
Surveys by recruitment companies indicate a CTO salary as high as $280,000 per year.
A CTO salary will vary by experience. Where they work also has an effect. CTO salaries in the Northeast tend to be higher, but CTOs can earn excellent salaries in other cities across the US.
With all these factors – experience, geography, the quality of the candidate and the needs of the business – it can be complicated to assess a CTO’s salary.
How to determine a CTO salary?
Assessing where a CTO should fit in this range can be complicated. We simplify it by using three key factors:
1. Does the CTO look to the horizon—to market leaders and emerging technology—in order to bring innovation and new ideas to the business? Are they genuine leaders in digital, custom software, and identifying market opportunities? Do they continually learn and ensure they are at the top of their game?
2. Do they take a leading role in improving efficiency, effectiveness, and driving business value? Do they create new starting points and innovations to open the door to new business strategies? Or is their job to simply meet the agenda set by more senior leaders?
3. Finally, do they take broad ownership for delivering change? For example, does the CTO facilitate discussions with other leaders within the organization and potentially outside? Do they work as equals with other leaders to meet overall objectives? Are they credible and knowledgeable when dealing with investors and other external stakeholders?
Overall, the CTO is an extremely important position that can have a huge impact on a business. The CTO’s salary needs to reflect that. (For more information about the role itself, see our article, What is the meaning of “CTO”?)
We interview, screen, select and develop more executive-level IT leaders than any other organization. We’re always happy to discuss the recruitment process or any other IT challenges or opportunities.
Why Freeman Clarke?
Freeman Clarke CTOs work on a “fractional,” or part-time model. This provides a business with first-class technology leadership without the full-time cost.
Our fractional CTOs are uniquely suited to mid-market businesses. They have outstanding technical expertise. They are strategic thinkers. They understand how to use technology to drive growth. But they are also suited to the culture and reality of mid-market business.
Whatever the remit, our CTOs operate from the fundamental idea of linking a business’s systems and digital strategy to business objectives. This should be the goal of every innovative company, because when the two disciplines are connected, we see real, sustainable growth.
To find out more about how we could add value to your business, Contact Us and we’ll be in touch for an informal conversation.
Responsibilities of a CTO
The CTO is a C-suite executive making a transformational impact with technology.
The CTO creates, supports, and delivers technology strategies to accelerate business growth.
The CTO may also be responsible for day-to-day operational management.
Chief Technology Officer (CTO) is a crucial position. They drive innovation, efficiency, and effectiveness across the business. They use technology – such as online or digital initiatives – to increase company value.
The CTO is responsible for technology, teams, and suppliers. They may oversee development of custom software and apps. And a CTO is a communicator, representing technology initiatives to investors and other stakeholders when necessary.
How CTO Responsibilities Change with Company Growth
Some claim there are two types of CTOs: those who provide technical leadership and those who provide operational management. In reality, it is often more often a continuum, with the roles shifting depending upon the company and its business goals.
But growth will definitely affect the responsibilities of a CTO. A few factors to consider when experiencing or planning for growth:
Vision and architecture. A CTO will need a bird’s-eye view of systems and processes.
Security. A major concern as a business becomes a juicier target.
New technologies. Consider how the role of the CTO has shifted with cloud-based, mobile and automation technologies.
Staffing. Growth usually means more people!
Integration. This is especially acute when during a merger or acquisition.
Main responsibilities of a CTO in startup
In any business, the CTO ensures that the company’s technology supports its business goals. But of course, this will play out in different ways in an established company and in a startup.
In a startup situation, the business may not even yet exist when the CTO gets involved. (He or she may be an investor.) The CTO will be crucial during the planning stages, evaluating the technical viability of the product and designing solutions to bring it to life.
Early in the life of a startup, the CTO will develop a Minimum Viable Product (MVP) to attract investors or users. At the same time, the CTO will guide the technology architecture, focusing on security, integration and scalability.
As the product matures, the CTO ensures quality control and takes responsibility for building and supervising teams and IT operations.
“Freeman Clarke has always provided honest and clear advice, guidance and support to the senior team. Having someone completely independent and trusted who understands both the business and the technology has proved to be a significant business enabler.” – CEO, British Pathé.
Why Freeman Clarke?
Freeman Clarke is the largest and most experienced team of part-time (we call it “fractional”) CIOs and CTOs. We work exclusively with ambitious mid-market organizations, and we frequently help our clients to use technology to beat their competition.
To find out more about how we could add value to your business, Contact Us and we’ll be in touch for an informal conversation.
What is “CTO as a service?”
“CTO as a service” means getting valuable advice from a Chief Technology Officer (CTO) as you need it, without ongoing costs. We live in an era where everything is a service; “CTO as a service” is an extension of this idea.
The Benefits of “CTO as a Service”
A CTO can deliver transformational benefits to a mid-market business by bringing expertise and traction to systems and digital projects. An effective CTO can streamline business processes, improve customer service, and increase value. They drive online projects, custom software and app development.
However, good CTOs are rare and thus command high salaries and benefits. So having a CTO as part of the senior team is potentially unaffordable for many mid-market businesses.
And even where budgets allow, it is a risky hiring decision and difficult to get right.
The solution is retaining a CTO as a service on a contract rather than full-time.
Issues with “CTO as a Service”
Of course, a CTO is a senior leader, and not all the benefits of a senior leader can be delivered as a series of well-defined tasks, or questions and answers, or opinions delivered from a distance.
Difficult issues are often ambiguous, and there are seldom simple solutions. To be blunt, if there is a problem you can fix with a phone call, you don’t need a high-quality CTO.
To achieve real, market-leading success, you need a clear vision, strong leadership, and expert judgment. There must be communication and action over an extended period.
technology alone rarely delivers value. The greatest challenge is to make organizations and businesses work together with technology. It isn’t practical to expect a remote, disconnected service person to deliver this value.
“CTO as a Service” vs. a Fractional CTO
A fractional CTO joins the senior leadership of a company on a part-time basis. This is a cost-effective approach and provides genuine and effective technology leadership. The fractional CTO is a part of the senior team, with ongoing involvement in technology initiatives and decision-making.
The best CTOs bring a cogent commercial and technical vision for how technology can deliver value to a business, and they bring innovation into the heart of the senior team. This cannot be achieved by someone working in a “taskified,” on-demand manner.
On the other hand, a fractional CTO shapes and influences a company without adding the overhead of a full-timer. A fractional CTO can have a huge impact on the growth of a mid-market firm without undercutting the bottom line.
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