Technology Leadership in Focus: Evaluating Competencies, Challenges, and Future Opportunities

Rapid technological advancements, shifting customer expectations, and growing cybersecurity threats, have made the IT function integral to business success. The demands on IT leadership have transformed, expanding significantly, with Technology Officers now expected to act as corporate executives and key contributors to strategy, in addition to providing their technical acumen.

The question remains, How equipped are the current and future technology leaders to handle these increasingly challenging leadership responsibilities?

Using data from our LeaderFit profile, (an online psychometric questionnaire measuring traits and derived from Saville WAVE), our Technology Leadership in Focus study explores the key strengths, gaps, and opportunities for development in the leadership competencies of current and future Technology Officers, to determine how equipped they are to handle the evolving demands and challenges facing their roles.

The data revealed 4 key findings:

1. Technology leaders show an innately strategic mindset

There appears to be an innate strength in “Strategic Clarity” or the capacity to envision the future, develop a clear vision, proof strategy, and enable innovation, which drives sustainable performance across the technology leadership talent pool. This emerged as the strongest competency overall - a reassuring finding given that today’s Technology Officers are integral contributors to corporate strategy.

However, unsurprisingly, established Technology Officers appear to possess a greater capacity for long-term vision and focus on formal strategy development compared with the next generation of technology leader – suggesting this is an area worth investing in.

2. Technology leaders are competent team builders

The ability to attract talent and develop high performing teams came in as the second strongest competency for technology leaders; particularly their capacity to co-ordinate, inspire and motivate a team, whilst taking responsibility for big decisions. As research indicates that high performing teams deliver 20% more economic value, this is an encouraging finding.

However, on average, technology leaders appeared to adopt a more directive, rather than inclusive, approach to leadership, suggesting there is room for improvement in maximising the collective contribution of the team. Adopting a more collaborative approach is also critical for creating better integration and solutions that unlock cross-organisational value – which is only going to become more important as technology is increasingly embedded across all business processes.

3. Technology leaders are less equipped in creating organisational alignment

Technology leaders – both established and the next generation – scored lowest in “Organisational Alignment”, which encompasses the development and alignment of market dynamics, customer demand, culture, structure, processes, systems, and resources through business plans and good governance. This is concerning given the critical role Technology Officers play in building the digital foundations that underpin the effective delivery of strategy and secure critical revenue growth.

While there was a reasonable strength in the capacity to identify new business opportunities, this study suggests there has been an over-indexing on the “fail fast” mentality which has become prevalent across the IT function, leaving a critical gap in systematic, thorough, and conscientious planning and execution to ensure successful delivery of critical strategic initiatives.

Most concerningly, the lowest score overall related to a focus on governance; which is particularly worrying given the increasing need for vigilance in cyber security and data governance, compliance, and risk mitigation.

4. The next-generation of technology leaders may be less equipped to navigate pressure and drive change than the current incumbents

The findings suggest that next generation technology leaders may be significantly less effective at delivering results, less equipped to operate effectively under pressure, and less able to bounce back from setbacks at pace, compared to established Technology Officers. These findings support broader research which suggests there is widespread exhaustion and change fatigue across the IT function, underscoring the need for technology leaders to address this issue or risk burnout. As the pace and complexity of widespread technological advancements and digitalisation are unlikely to slow, this need becomes urgent.

Actionable insights for technology leadership development

The full report provides a detailed breakdown of competency strengths and gaps, as well as actionable insights and recommendations for how to mitigate the critical risks.

For more information, or for help appointing, assessing, and developing your technology leadership, get in touch: caroline.sands@odgersberndtson.com or katie.boucher@odgersberndtson.com.