How to build high-performance technology teams

28/02/2024 – The information technology landscape is evolving rapidly. Trends such as artificial intelligence, blockchain, cloud and robotics are no longer futuristic dreams but part of our daily lives. These technological advances offer enormous opportunities, but also present companies with major challenges. One crucial aspect of this challenge is building high-performance technology teams that both organise ongoing operations efficiently and create space for innovation. Achieving this delicate balance requires new thinking and approaches. In this context, the role of a Chief Technology Officer (CTO) or Chief Information Officer (CIO) are more important than ever, as they are responsible for building and leading high-performance technology teams. 

But how can this be achieved in practice? Philipp Mudersbach, Partner at Arthur D. Little in the Technology & Innovation Management (TIM) department, addressed this topic at our last CIO/CTO roundtable event in Frankfurt am Main. 

The new leadership role: focus on adaptability and team dynamics 

Mudersbach emphasizes: "We live in a time when adaptability and speed represent a decisive competitive advantage. It is no longer the strongest company that dominates, but the fastest and most flexible."  

The fast pace of the IT industry particularly demands constant adaptation to new circumstances. It's not merely about keeping up with the latest technological trends, but also about creating an environment in which creativity and innovation can flourish. 

Practical tips for CTOs and CIOs 

Mudersbach offers concrete recommendations for CTOs and CIOs aiming to lead their technology teams successfully. 

1. Focus on long-term strategic planning  

Direct your technology teams towards long-term stability and productivity. Consider innovation as an investment in the future that has the potential to drive your organisation forward in the long run. A robust technology strategy allows you to steer a sustainable course and adapt to evolving market conditions. 

2. Identify and close skills gaps  

Identify areas where your team requires further training or additional resources. Actively work to close these gaps and consistenly invest in your team´s development. Only a team that keeps its finger on the pulse and enhances its skills can meet the many challenges of the digital age.  

3. Balance operations and innovation  

Use a balanced approach between operations and innovation for effective innovation management. The operational elements are characterised by strategic clarity and data-driven decisions, essential for automated processes and smooth operations. The innovative elements, on the other hand, represent speed, creativity and the courage to try something new. A good balance of both elements enables your team to efficiently manage routine tasks as well as develop and implement innovative solutions.  

4. Promote psychological safety 

Give your team space to express new ideas without fear of criticism or reprisal. Foster openness and the sharing of emotions and personal experience to strengthen teamwork and trust. 

5. Adopt a customer-centered approach  

Always align your strategy and efforts with the needs and desires of your customers. By adopting a customer-centered approach, you can constantly improve the quality of your products and services and ensure that they remain relevant. Customer feedback is the key lever for optimising your products and services and ensuring the long-term success of your company. 

6. Encourage experimentation 

In a rapidly changing technological landscape, teams must experiment with and explore new approaches. Mistakes should be seen as learning opportunities, rather than setbacks. Therefore, the corporate culture should always promote experimentation and innovation, encouraging employees to challange the status quo. 

Arne Fietz, Manager at Robert Walters, adds: "A good technology team is more than the sum of its parts. It is therefore crucial to consider not only the technical skills of each individual, but also the dynamics within the teams. It's about cultivating an environment where each individual feels valued and motivated to excel. This creates a strong foundation for both day-to-day operations and innovation to thrive."