AI adoption strategies CTOs must embrace in 2024

The end of an era for software engineers: The tech industry is experiencing a significant shift, with the golden age of engineering coming to an abrupt end as companies reassess their workforce and priorities.

• For nearly two decades, software engineers enjoyed unprecedented job security, high salaries, and lavish perks, even with minimal experience.
• Big Tech companies like Google hoarded engineers not just for their work, but to keep talent away from competitors, leading to inflated engineering teams.
• This arms race resulted in a culture where engineering leaders prioritized hiring and retention above all else, often at the expense of business alignment and productivity.

The new reality for engineering organizations: The recent wave of tech layoffs and the promise of AI have drastically altered the landscape, forcing engineering leaders to adapt to a new normal.

• In 2023, Big Tech companies laid off over 250,000 workers and significantly reduced benefits, signaling the end of the engineering boom.
• C-suite executives are now scrutinizing engineering departments, questioning their size and productivity in light of successful cuts made by industry giants.
• Many engineering leaders are unprepared for this shift, still operating as if retention is the primary goal rather than justifying their teams’ value to the business.

The visibility problem in engineering: A key challenge for engineering departments is the lack of understanding and visibility into their work from non-technical leaders and other departments.

• Most business leaders have little insight into the day-to-day activities and value creation of engineering teams.
• Engineering as a function is not widely understood, with few non-technical executives having a solid grasp of concepts like InfoSec or enterprise engineering.
• This knowledge gap leads to painful conversations between technical and non-technical leaders, often requiring extensive explanations of basic concepts.

The narrative vacuum: Engineering leaders have historically failed to control their own narrative within organizations, leading to misunderstandings and stereotypes.

• Product management often acts as a buffer between engineering and the rest of the business, further obscuring engineers’ actual work.
• The lack of a clear engineering narrative has allowed negative stereotypes to flourish, portraying engineers as socially inept, entitled, and disconnected from business realities.
• This narrative vacuum makes it easier for companies to justify cuts to engineering teams, even when such cuts may be detrimental to the business.

The importance of owning the narrative: For engineering leaders to navigate the new landscape successfully, they must take control of their department’s story within the organization.

• A strong narrative helps justify goals, build excitement, and provide context for both successes and challenges.
• Engineering leaders need to communicate the value of maintenance activities, refactors, and other critical but often invisible work.
• By failing to control their narrative, engineering teams become vulnerable to misguided cuts that could put business continuity at risk.

The path forward for CTOs: To survive and thrive in this new era, engineering leaders must adapt their approach and actively engage with the broader business.

• CTOs need to move beyond focusing solely on hiring and retention, and instead prioritize aligning engineering efforts with business goals.
• Engineering leaders must learn to effectively communicate the value and impact of their teams’ work to non-technical stakeholders.
• Developing a clear narrative that explains the role of engineering in driving innovation and revenue is crucial for protecting teams from uninformed cuts.

Balancing efficiency and innovation: While many engineering organizations outside of Big Tech are already lean, there’s still a need to demonstrate value and efficiency.

• Most companies have learned to do more with less due to the high cost of tech talent.
• Engineering leaders should highlight how their teams enable business prosperity and innovation.
• CTOs can leverage their understanding of culture and employee value to create more productive and engaged teams across the organization.

A pivotal moment for the tech industry: The current shift in the tech landscape presents both challenges and opportunities for engineering leaders and their teams.

• The narrative around engineers will play a crucial role in determining their future within organizations.
• CTOs who step up to control their department’s story can protect their teams and demonstrate the true value of engineering to the business.
• Failure to adapt to this new reality could result in misguided cuts that jeopardize not only engineering teams but also the long-term success of the businesses they support.