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Fintech Chief Technology Officers (CTOs)

In any Fintech company the CTO (Chief Technology Office) has a crucial role and finding the right person is a key step in forming a successful venture.

But what exactly is Fintech? We define Fintech very broadly as software that automates and disintermediates services in consumer financial services, payments and investments. These include companies that offer self-service platforms in competition to traditional advisory and offline services. The common factor is simply the pursuit of ways to remove time and effort, to disintermediate, simplify and disrupt entire markets, and to create new value.

This sector is hyper active and the UK, particularly London, leads the world. New aggregators and crowd funding initiatives are launching every week. The adoption of cryptocurrency and blockchain is revolutionising payments, disrupting banking and taxation systems and encouraging the federation of data.

Why this sudden growth and why now?

A number of factors have come together:

Firstly in the UK, funding is generally more available (than other parts of Europe) and the regulatory and tax regimes are favourable. Successful ventures are attracting high valuations and this is feeding back to boost funding and driving interest from entrepreneurs.

Secondly, the banking crisis led many larger firms to a protracted period of reorganisation, cost cutting, and into greater focus on regulation and compliance. Adventurous executives who felt estranged by the new agenda, saw new market opportunities and created their own startups. Ten years on, corporations are launching their own Fintec businesses, often following entrepreneurial approaches.

Thirdly, consumer adoption and trust of technology, especially smartphones, has crossed the Rubicon. Particularly for metropolitan and younger demographics, use of technology for everything is just a given.

And finally, the UK’s and London’s position as a banking, insurance, media, marketing and technology centre provides a critical mass of talent. This together with the availability of start-up and scale-up platforms, ranging from office-space to cloud-based technical environments, has massively reduced the complexity of getting started and capital requirements of launching a new venture.

Where does a CTO fit?

Our commercially astute and experienced CTOs deliver these kinds of software systems for a living. They have excellent knowledge of software architecture and design; of building and leading a team; of driving the product development. This includes the full range of issues including user experience (UX) design, development, testing, dev ops, support, hosting, and back-office design – for both insourced and outsourced development.

But, critically, they can also understand the commercial context and can represent the company with investors, clients and business partners. Their credibility and experience in these situations is as critical as their ability to oversee the team and suppliers and to deliver the software!

Our CTOs are experts in commercialisation and “Go To Market” so they remain focussed on getting products live and creating value.

Experienced and commercially astute CTOs are notoriously difficult to find. Very few individuals have the magic combination of technical and real business experience.

Some companies search for interim CTOs to engage for a defined period. But interim culture is based on a “hired gun” mentality. Their engagement with the business is fleeting and the commitment is simply based on a day rate. Interims can have a “lone wolf” attitude, may not be interested in where the business is going and may have little buy-in to the viability of the software or to its support or commercial arrangements.

Our CTOs immerse themselves in your business and are genuinely part of your senior team. Uniquely our CTOs expect to work flexibly with our clients over the short, medium or long-term but to be a fully committed rather than just another consultant.

Visit our Chief Technology Officers (CTOs) Knowledge Centre which includes all content related to this topic.

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.

Work Life Balance for Top IT Leaders

If you’ve got to the top in IT, the chances are that a lot of dedication and hard work got you up the slippery pole of leadership to earn you your boardroom seat. Once you’ve reached the top however, what next? Repeating the same thing in different companies can quickly lose its appeal with satisfaction often levelling off, if not dropping away. It’s at this stage in life/career when many stop and ask themselves those big life questions: “Why?”, “What’s it all for?”, “What’s in it for me?” often concluding that “There must be something more!”. Unfortunately, at the mid/late career stage your home life usually demands a certain level of income and the idea of starting afresh or giving it all up for a life in the country looks all but impossible. And yet the prospect of living a Groundhog Day career leaves many people cold and keen for something different.

If the idea of continuing that corporate grind makes you want to bang your head against the wall in frustration, there is good news. The world of work is rapidly changing and there are different options for even those at the pinnacle of their career.

While we’ve all heard of the Gig Economy, the media of late has tended to portray it as somewhat negative and exploitative.  Whilst acknowledging this interpretation, the CIPD’s 2017 Gig Economy report also however describes it as “a new form of flexible working that gives individuals new choices about how, when and where they work”.

It’s at the senior levels of business leadership that the Gig Economy works well, with positive impact for everyone involved. The traditional Permanent, Interim and Contract models of working available to C-suite IT leaders have more recently been joined by Fractional working. Fractional working is all about providing a fraction of your capability, energy and skill to multiple clients for a fraction of the cost. You could also call it a Portfolio Career; working for yourself, with multiple clients, doing what you do best. Others have described this method of working as “an IT Director as a Service”, but it’s so much more than that!

This is no flash in the pan; it’s a growing sector of work and is symptomatic of what’s happening across the wider workplace. Companies are looking to hire skills as they need them rather than have them on the payroll. At the lower end, this can of course be exploitative – think cabbies and bicycle couriers – but at the top end, it can work very much to everyone’s advantage. Small and Mid-Sized businesses rarely need a full-time IT Director, but there’s no doubt they would benefit from the skills and knowledge of that person in the boardroom, and increasingly they’re willing to pay for someone who understands their business from a technology perspective.

This new way of working is proving particularly popular in the SME space where business leaders have become used to utilising cloud services and benefiting from the significant advantage this brings to the bottom line. Freelancers have supported business for many years and there are plenty of ways to connect with these people and garner their skills, but these are usually the hands-on “doers” rather than the strategists.  Strategic input can’t be provided by the hour so the basic Freelancer model doesn’t work when it comes to providing this kind of input and value-add. It requires longer-term engagement and an intimate knowledge of the business.

The Fractional (or part-time) Director model works differently, using a professional services dynamic where there’s a team of like-minded, qualified people doing the same thing, sharing experience, sharing knowledge and helping one another so that everyone, client included, benefits.

More than 40% of businesses of less than £50M turnover don’t have anyone at board level who understands IT. With business increasingly technology dependent, most board-level decisions today need strategic IT input if they are to be sound decisions. Without a Fractional IT Director, the MD has very few, if any, places to turn to for independent strategic IT guidance and is thus making critical decisions with one eye shut. The Fractional IT Director fills the gap, enabling MDs to make robust decisions based on all the facts, including the technology facts.

What this means for the seasoned IT Director, CIO or CTO is that there is now an alternative to the traditional means of mid/late career progression that is a wholly new experience, one where the entire skill-set is invaluable and appreciated. One where a real difference can be made and where impact is clearly visible.

This is a highly enjoyable way to be an IT Director – multiple clients, multiple cultures, different stages of growth, different funding arrangements, a different journey every day. An escape from the corporate straight-jacket. No more presenteeism, no more timesheets. Work how you want and when you want, supported by a team of professionals all doing the same thing. This approach can bring its own challenges, but when you’ve got a network of like-minded peers around you, it’s a positive experience and not at all lonely.

A Fractional career is a lifestyle choice; it probably won’t offer the same level of remuneration as a full-time role. However, any earning reduction is offset by the flexibility and non-financial rewards that the way of working brings.  If you’ve begun to think that personal fulfilment is more important than the big bucks, then working fractionally might well be your next career choice.

Once introduced, client engagements are rarely short-term. Assuming you connect with the MD and his/her business vision, they soon turn in to long-term relationships. You quickly become an integral part of the strategic team, an essential advisor making a real difference to growth plans. Going native is a positive as a Fractional IT Director – you’re their IT Director, it’s just you’re not around the whole time.

The Fractional career poses less risk than going it alone or kicking off a start-up, but the risks are still higher than the other full-time career opportunities. There is an initial period, before client work starts, without income, and so having a solid financial buffer to cover those first few months, is prudent. This allows the time to build rapport with potential clients, develop the client portfolio and get used to working as a Fractional Director.

This is the only career path offering the opportunity to work in new sectors and industries. Recruiters and corporates hiring for full time roles increasingly only want candidates with specific industry experience and the complete range of prerequisite skills. As a Fractional IT Director, it’s all about relationships. If the MD likes and trusts you, prior specific industry experience comes second to fitting in with the team. Our model offers plenty of variety; as an example, one Freeman Clarke Principal is working for a law firm, an events business and a property sector business whilst another works with an accountancy firm, a media company, a vending company and a telecoms company.

Fractional working is the only model where work/life balance works for you rather than someone else or the corporation.  Our model means working approximately fifteen days a month rather than twenty. It means working when you want rather than when someone else demands, providing freedom and flexibility. No two days are the same and every day is rewarding, ultimately providing a good income AND significant personal reward. Our Principals report this way of working as being the best thing they ever did.

Freeman Clarke provides fractional IT Directors to MDs of fast growing SME’s throughout the UK and in Singapore. If you’re interested in becoming a Freeman Clarke Principal, or would just like to find out more about the Fractional way of work, please get in touch. [email protected] or call 0203 020 1864

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Graeme Freeman
Co-Founder and Director

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