Business needs to "think tech"

In my role as a CTO and a very technically savvy person, I often notice that technical expertise is not always in good shape in the upper echelons of management. However, against the backdrop of an increasingly digital and technical world, a minimum level of technical expertise in top management is a must.

As soon as things get technical, many managers and executives drop out. Attention dwindles because, on the one hand, the topic is not considered relevant. According to the motto: "Let the technicians take care of it." On the other hand, misconceptions or dangerous half-knowledge circulate. Nowadays, a solid basic knowledge is mandatory for everyone in top management. Strategic corporate decisions must always take technical aspects into account.

In a digital world, top managers need basic technical knowledge.

Basic knowledge is mandatory for CEOs

To manage a company today, to strategically position it for the future and to develop products, you need at least a basic understanding of technology. Many CEOs and top managers are happy to pass on the subject to the CTO or other technicians. However, those who hand everything over can suffer far-reaching negative consequences. Products and solutions are created that may be brilliant from a technical perspective, but do not necessarily advance the business.

A lack of technical knowledge leads to poorer sales and missed market opportunities.

Thinking from the business

The task of products and tools is to serve the business. Not the other way around. Therefore, everything must always be thought out based on the business. Detailed knowledge or even programming skills are not necessary for managers. Nevertheless, there should be a sound knowledge of what an API, SaaS or the cloud is. Unfortunately, I see in many companies that this is not the case. For example, some managers still think agile is only about working in sprints. When it comes to agile tools like SCRUM or Kanban, a majority of senior managers have noticeable knowledge gaps.

Every solution must be thought out starting from the business.

The solution: Serious interest and training

If words are dropped in meetings that are not understood, managers should not be too shy to ask. Taking notes so that they can do their own research afterwards is also helpful. There are also a number of specialist books on the market that provide information on server architectures or working methods, for example. If it becomes clear during reading that the basic knowledge is still lacking, one should work specifically on it. A solid technical foundation is a prerequisite for making better decisions. Another method is tech coaching for executives. I regularly advise board members and top managers on detailed technical topics - and can break down complex technical systems into simple business language. The condition for success in continuing education is always a growth mindset. Because only those who want to educate themselves will get ahead.

Solid technical foundations are the prerequisite for making better decisions for business success.

Conclusion: Business must learn to understand technology

In today's world of technology, every manager needs a sound technical understanding in order to develop products beyond the department. Under no circumstances should everything be left to technologists.  Otherwise, the solution often misses the customer and fails to meet revenue expectations. Monetization opportunities are carelessly missed. False shame about not knowing something must be discarded. Because success can only be achieved if technology is also understood in business.