CTO, CPO, both, or CPTO?
For the last 30 years, Chief Technology Officers (CTOs) have been a mainstay in the executive suite, tasked with setting technological direction, managing infrastructure and resources, and mitigating risk.
But a lot has changed since the nineties, not least the move towards cross-functional teams, agile ways of working, and the rise of DevOps and product thinking. Some of these have been driven and enabled by technology, like the advent of the cloud, others have been a response to maturing approaches to IT management and product development.
These changes have seen rise to new roles in the C-Suite, such as the Chief Information Officer (CIO), Chief Product Officer (CPO) and, more recently, the unicorn Chief Product and Technology Officer (CTPO).
We’ve worked with hundreds of organisations of different shapes and sizes at different stages of growth, with wildly different products and services, each with its own unique leadership setup. And increasingly, we’ve seen the lines of responsibilities between these roles blur. At its best, this can lead to harmonious, productive relationships or leaders with the perspective and remit to propel their organisation to new heights. At its worst, it can result in overwhelmed, ill-equipped leadership or a toxic power struggle.
This article provides an overview of each role, how they interact with one another, and some practical guidance on choosing the right structure and leadership model for your organisation.
Roles and responsibilities
Chief Technology Officer (CTO)
The CTO is usually the most senior technical person in the organisation, responsible for the technology or engineering function. The role rose to prominence in the late 1980s through the growth of the information technology industry and early internet companies.
Traditionally, CTOs were responsible for overseeing the development and dissemination of technology within an organisation. Their primary focus was on internal systems, infrastructure, and technological capabilities. But increasingly, they look after a broader range of responsibilities, including driving innovation, shaping product strategy, and influencing overall business direction.
In early-stage companies, a CTO's remit is often even broader. They might be directly involved in writing code, managing small teams, and overseeing product development. However, in more mature organisations, they often sit atop a pyramid of direct reports, overseeing departments such as software development, IT operations, data science, and cybersecurity.
According to Payscale, the average salary for a CTO in the UK is £100,017, although, in larger companies, this can rise to 2.5x this amount and is typically supplemented by equity and other incentives.
"The CTO is the person who is always looking at the future, who is always looking at what is coming next, and trying to figure out how to make sure that the company is ready for it." – Werner Vogels (CTO of Amazon)
Chief Product Officer (CPO)
The CPO is a relatively new addition to the C-suite, with the role starting to gain traction in the early 2000s, predominantly in tech companies. This emergence coincides with the increasing recognition of product strategy as a critical driver of business success, particularly in the digital age.
The primary focus of a CPO is to align product strategy with overall business strategy, ensuring that the company's offerings meet market needs and drive growth. They are responsible for product development, from conception to delivery, creating a coherent product strategy, and for managing the product function. (You can read more about how to structure your product function here).
The average UK salary for a CPO is £147,028 and will again often come with options or equity. This is higher than the average salary for a CTO, as you will find more CTOs in early-stage companies where compensation is lower.
Stephanie Leue, share her views and the realities of being a product leader in the C-suite:
Chief Product and Technology Officer (CPTO)
The CPTO hybrid role has emerged over the last 5 years as organisations began to appreciate the need for a closer alignment between the strategy for the product and the ability to deliver that product.
The role encompasses aspects of both the CTO role and the CPO, effectively taking responsibility for what to build, considering market, business, and user needs, and how to build it.
The CPTO role is often found in earlier-stage companies, which don’t have the budget to justify two highly paid individuals, or in organisations where alignment between these two roles in the past has been poor.
According to Jooble, the average CPTO salary is £231,387, which is higher than both CPO and CTO average salaries, likely to take into account their broader remit.
Different combinations
CTO only
The most common approach is to have a single Chief Technology Officer in the executive suite, overseeing both the engineering and product functions. The effectiveness of this model largely depends on the individual CTO's experience, mindset, the strength of their direct reports, and the size of the organisation.
Pros:
- Single point of authority, enabling quicker decision-making and clearer communication.
- It's generally easier for a CTO to develop a product-centric mindset compared to a CPO gaining the necessary technical understanding.
- There are more CTOs in the market, making them relatively easier to hire.
- The engineering function is almost always larger than the product side, so a CTO-focused leadership structure makes organisational sense.
- CTOs can provide a clear technical vision and roadmap to align the organisation's technology strategy with its business objectives.
- Experienced CTOs often have strong relationships with key technology partners and vendors, which can be leveraged to the company's advantage.
Cons:
- CTOs without a strong product mindset may struggle to drive business growth and manage non-technical direct reports.
- The breadth of responsibilities can be overwhelming, particularly if the CTO is not flanked by a Chief Information Officer (CIO).
- There is a risk of the CTO becoming too focused on the technology and delivery and losing sight of the broader business and customer needs.
- Maintaining a balance between long-term technology strategy and short-term operational demands can be challenging for a single CTO.
CPO only
Very rarely seen, this approach places a single Chief Product Officer in the executive suite without a CTO. The success of this model relies heavily on the individual's skillset, experience, and ability to lead and delegate to senior technical leaders.
Pros:
- A product-minded individual at the top of the organisation, providing a clear focus on customer needs and market opportunities.
- A single point of authority for efficient decision-making and clear communication.
- CPOs can bring a deep understanding of user experience, market trends, and competitive landscape to the executive team.
- CPOs are often skilled at aligning product strategy with broader business goals and communicating the value of the product portfolio to stakeholders.
Cons:
- Unless the CPO is a true "unicorn", they will likely need to rely heavily on other technical leaders below them to provide the necessary technical expertise.
- There are fewer CPOs in the market, making them more challenging to find and hire.
- They may lack the technical credibility to effectively lead and manage the engineering team, potentially leading to tension and resistance.
- Without a CTO counterpart, the CPO may struggle to create a product strategy that is both feasible and viable to deliver.
CTO and CPO
If an organisation can find the right combination of a CTO and CPO who work well together, this is the gold standard.
Pros:
- Balanced expertise across both technical and product domains, providing a comprehensive view of the organisation's capabilities and customer needs.
- Effective leadership and delegation within their respective teams, allowing each executive to focus on their core responsibilities.
- The CTO and CPO can serve as a check-and-balance on each other, ensuring that technology decisions are aligned with customer and business needs.
- The strong dynamic between the CTO and CPO can set the tone for cross-functional collaboration across an organisation.
Cons:
- The relationship between the CTO and CPO can be contentious if there is a lack of alignment, requiring strong interpersonal skills and a commitment to collaboration.
- Having two executive-level roles is more expensive than a single-leader model, which may be a barrier for some organisations.
- Coordinating decision-making and aligning priorities between the CTO and CPO can be a challenge, especially in fast-paced environments.
CPTO only
The Chief Product and Technology Officer role combines both the CTO and CPO responsibilities into a single position, which can be a great option if the right individual can be found.
Pros:
- Balanced expertise across technical and product domains, providing a holistic view of the organisation's capabilities and customer needs.
- Streamlined leadership under a single role, reducing the potential for miscommunication or conflicting priorities between technology and product teams.
- The CPTO can serve as a highly influential and visible leader, driving the organisation's digital transformation and product innovation.
- The CPTO can act as a bridge between the technical and business sides of the organisation, facilitating better collaboration and alignment.
Cons:
- More expensive than a single-role model, but less costly than two separate CTO and CPO positions.
- It can be challenging to find candidates with the right mix of technical, product management, and strategic leadership skills.
- The CPTO may struggle to effectively delegate and empower their teams, as they try to maintain control over both the technical and product domains.
- There is a risk of the CPTO becoming a bottleneck in decision-making, as they try to balance the competing demands of technology and product.
Picking the right leadership for your organisation
Budget
Budget is a critical consideration when determining the right executive leadership structure for your organisation. Multiple C-suite roles come at a price, but if your budget allows, finding the right individuals who can work effectively together as a CTO and CPO is the ideal approach. However, if resources are more constrained, a hybrid CPTO role can be an effective middle ground.
Permanent, contract, or fractional
If budgets are tight or there is uncertainty about the long-term need, a contract or fractional executive role can help fill the gap and/or prove out value. Typically, you could expect to pay £800 to £1,500 per day for a fractional/contract CTO or CPO in the UK . While this may seem expensive upfront, it can actually save you money compared to a permanent hire when you factor in the costs of equity, taxes, and benefits, which can add up to 40% of a base salary package.
However, for longer-term stability and deeper investment in the organisation's mission, a permanent executive role is your best bet. The trade-off is the higher ongoing cost.
Company stage and maturity
The needs and complexity of an organisation continue to grow over time, asgit In highly technical or channel-based product companies, there may be a greater need for a dedicated CTO to oversee the engineering function. In more mature organisations, where the product and technical capabilities are already well-established, a CPTO role may be sufficient, as the existing culture and next level of leadership can effectively execute on both the product and technology fronts.
Conversely, less mature organisations may benefit more from the distinct expertise and focus of a CTO and CPO, as the cultural transformation required may demand the attention of two strong, specialised leaders.
The individual
Ultimately, the specific skills, experience, and personality of potential candidates should supersede any generalisations about role combinations. While highly effective "unicorn" CPTO individuals do exist, they are still relatively rare. It may be more practical to evaluate your existing CTO or CPO and consider whether they could expand their skillset to provide more holistic oversight. Alternatively, you may determine that complementing your current leadership with an additional, adjacent role would be the best path forward.
Summary
The choice between a CTO, CPO, both, or a CPTO role will depend on a variety of factors, including your organisation's budget, stage of growth, technical maturity, and the specific skills and experience of potential candidates. While the CTO-only model remains the most common approach, the rise of product-thinking has driven increased demand for the CPO role and the CPTO hybrid.
Ultimately, the right leadership structure is the one that best aligns with your company's strategic priorities and enables effective collaboration between the technical and product domains. By carefully considering the pros, cons, and tradeoffs of each option, you can build an executive team poised to drive innovation and deliver exceptional customer experiences.
