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Why engineers make great CEOs

90 pointsby Navarajanabout 11 years ago

16 comments

dworinabout 11 years ago
I&#x27;ve found that many organizations tend to have a &#x27;dominant function&#x27;, and CEOs tend to come from that function. So if engineering calls the shots in your company, or is the main driver of success, the CEO tends to come from engineering. If the company is driven by sales, the CEO tends to come from sales.<p>That&#x27;s why you see so many oil company CEOs who are geologists or engineers, tech company CEOs who are developers, and CPG CEOs who are marketers.
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derekjobstabout 11 years ago
Perhaps this is not indicative of a rise of engineers who become interested in management, but individuals already interested in management (or are of that mindset) choosing to get a degree in engineering instead of Business. Given the tremendous value of an engineering degree, especially as a guaranteed high level of income, it makes sense practically minded managers would prefer such a safety net.
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JoeAltmaierabout 11 years ago
Engineers think the world would be a better place if only Engineers were in charge. Marketing types think a good customer sense is critical to the top job.<p>Its like government - military men think a military leader is needed; business wants a businessman etc.<p>I think the best leader would be - a leader. Someone who gets competent advisors, makes decisions and inspires the crew to do their best.
Disruptive_Daveabout 11 years ago
&quot;They’re detail-oriented, analytical and trained in systematic problem-solving. Engineers’ basic qualities make them good candidates for the top.&quot;<p>There&#x27;s a significant element missing in this line of thought and it involves emotions&#x2F;people. By this reasoning, a robot might also make a damn good CEO.
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collywabout 11 years ago
&quot;the life of an engineer, it seems, is not as rosy as originally anticipated&quot;.<p>Ok this affects me at the moment. Why? Because I have two incompetent bosses. Basically I have junior &#x2F; intermediate level programmers telling me what to do (and getting paid more than me for it). They took the promotion for the money. I do the &quot;smart&quot; work and make the technical decisions (when they make technical decisions they are often poor choices, basically from lack of experience).<p>Its at the point that I am going to take the next management position that comes up.
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Aarononthewebabout 11 years ago
Engineer-turned-CEO here.<p>Engineering teaches you a lot of the analytical &#x2F; architecture skills you need to build and run organizations, but you won&#x27;t be ready to lead until you learn a decent amount of the other business functions that make up just about every company.<p>You need to learn how marketing works, but not just the basics - learn what type of people are good at each role, what are the types of roles you need for different types of marketing strategies, some of the tactics for each strategy, etc...<p>Rinse and repeat for sales, operations, finance, product (different from, but aligned with engineering), and general strategic stuff like legal, recruiting, release strategy, fund raising, investor management, and so on.<p>Here&#x27;s the good news: you don&#x27;t need to be an expert in all of these areas when you get started. You just need to know enough to know which questions to ask and then surround yourself with advisors who can help answer them.<p>If you&#x27;ve ever built a new product (doesn&#x27;t literally need to be a commercial product) from scratch and actually gotten people to use it, then you&#x27;re probably already capable of thinking strategically - that&#x27;s the first core ingredient for dealing with the market &#x2F; product &#x2F; economic challenges tasked to CEOs.<p>The second ingredient is the empathy and people-management part... This means being able to internalize concepts like e every employee is different, values different things, and therefore might need &#x2F; expect different things from you - some employees might deeply care about working on interesting projects; others might care about being able to work in a specific time &#x2F; location so they can maximize the time they spend with their family; some might care about money; but in my experience overwhelmingly most employees just care about feeling like their work is meaningful and appreciated.<p>Learning how to build an organization out of people who all have different personal priorities, levels of experience, backgrounds, and personalities is not trivial. You basically need to develop a high degree of self-awareness about your own needs and values as an employee first. And once you&#x27;re able to do that, it gets a lot easier to recognize and understand what others need.<p>TL;DR; - there&#x27;s a big menagerie of different things you have to learn to be a CEO, and engineering can help you structure the process of learning them but it&#x27;s not enough unto itself. Develop a strong sense of self-awareness, a good advisory board, and the humility to ask for help when you need it.
alexc05about 11 years ago
Except when they&#x27;re not.<p><a href="http://en.m.wikipedia.org/wiki/John_Roth_(businessman)" rel="nofollow">http:&#x2F;&#x2F;en.m.wikipedia.org&#x2F;wiki&#x2F;John_Roth_(businessman)</a><p>Roth was an engineer who oversaw stock schemes and false accounting such that he was able to completely wipe out the company. (Nortel was one of Canada&#x27;s largest companies and now its gone)
Jugurthaabout 11 years ago
From all the great Engineers who&#x27;ve ever lived, the author couldn&#x27;t think of anyone else but Thomas Edison, Henry Ford...<p>With all due respect, when I read &quot;engineering&#x27;s long and glorious history&quot;, I have other names in mind.
jasodeabout 11 years ago
A high-profile counterpoint is RIM engineer and (former) CEO Mike Lazaridis. Even after seeing the Steve Jobs iPhone demo in 2007, his engineering and logical mindset was convinced that businesses would not adopt a device without a physical keyboard and that push email was more important than an apps ecosystem. He didn&#x27;t see that the consumer engagement with iPhone was so compelling that the user would do an end run around the corporate IT departments (by buying the device on their own) and kick off the BYOD movement.<p>But setting aside some business missteps, it seems like engineers&#x2F;CEOs are better for companies (especially tech growth companies) than MBAs. It was after all, Lazaridis&#x27; background that helped RIM achieve so much success that they could afford to pay $600 million to NTP in 2006 and also be in the competition with iPhone.
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programminggeekabout 11 years ago
A lot of engineers would make terrible CEOs because they don&#x27;t understand the basic tenants of business. Most software engineers don&#x27;t like charging appropriately or spending appropriately on things that make the company money. There is a huge aversion to sales, marketing, and advertising.<p>If the CEO doesn&#x27;t make sure the company makes money, the company will fail. I see this a lot in smaller companies. Larger companies probably don&#x27;t let engineers get to the higher ranks unless they can make the company serious amounts of money.<p>Ultimately a business is about making money, and the CEO has to make sure that happens. Otherwise, you aren&#x27;t much of a CEO.
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jokoonabout 11 years ago
china comes to mind: aren&#x27;t many chinese leaders former engineers ?
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thampimanabout 11 years ago
Marc Andreessen at SS &#x27;11: <a href="https://www.youtube.com/watch?v=i9phm2ae0Ss&amp;feature=youtu.be&amp;t=22m25s" rel="nofollow">https:&#x2F;&#x2F;www.youtube.com&#x2F;watch?v=i9phm2ae0Ss&amp;feature=youtu.be...</a><p>&quot;The engineer who can become an entrepreneur, who can then become a CEO... there&#x27;s something magic about that formula&quot;
shankysinghabout 11 years ago
Personally, I feel people make &quot;great&quot; CEO not specifically one group .
GFK_of_xmaspastabout 11 years ago
Friendly reminder that Herbert Hoover was an engineer.
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nbevansabout 11 years ago
This bodes well for NewMicrosoft and Nadella.
michaelochurchabout 11 years ago
I&#x27;m of mixed minds about this. On one hand, if your CEO isn&#x27;t smart enough to appreciate engineering, R&amp;D, and the cultural needs of high talent, you&#x27;ll never get anywhere. The long-term result of having a business-driven technical organization isn&#x27;t having a lower talent level. It&#x27;s losing all the talent.<p>On the other hand, it&#x27;s really simplistic to assume that engineers are &quot;the good guys&quot; and that having an engineer-turned-CEO will guarantee an engineer-driven organization. There are plenty of self-hating, Benedict Arnold engineers who&#x27;ll gladly sell technology out to management. For some reason, a substantial portion of the engineers who become executives are that kind, and I don&#x27;t know why, but it gives the good engineers who move into leadership a bad name.