Get All Access for $5/mo

6 Crucial Characteristics of an Effective Tech CEO Successful CEOs all have similar traits as well as unique strengths.

By Mark Josephson Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Shutterstock

Every day, there seems to be a new article breaking down what makes a great CEO. Whether it's a general piece or something related to Steve Jobs, the articles often focus on what makes these executives unique, not the winning characteristics they all share.

It's no secret that being a CEO requires setting the overall vision of the company, hiring great talent and ensuring there's money in the bank -- but without certain complementary traits, it would be difficult to run businesses that succeed. If you're an aspiring leader in tech, here are the six characteristics I've noticed among the most effective CEOs in the industry.

Related: 6 Truths on Why Introverts Make Great Leaders

1. They have a defined strategy.

This may seem obvious, but you'd be surprised by how many tech CEOs don't have a truly defined strategy -- or a clear cut goal -- for the business. It's not easy, especially for tech startups, but if you set your plan high and allow for movement, your strategy will almost certainly change and evolve over time. Everyone in the company needs to know what you're trying to accomplish.

2. They build culture from the ground up.

In bigger businesses and different industries, leaders take a step back from the day-to-day processes. They stay in their offices, talk to the board and investors, and plan from above.

Tech CEOs, especially during the early stages of a company, need to help build culture from the ground up. That means getting involved with employee activities, spearheading office events and making sure you take time to get to know everyone. What motivates them? What are their personal goals? Knowing the whole person of each individual will strengthen the company culture and help retain -- and nurture -- talent.

3. They hire the right people, not the right people for right now.

When you're trying to scale a business, it's tempting to hire the first people who show up with the right skill sets. But if those employees aren't invested in the company's direction long-term, the cracks will start to show sooner rather than later, and you'll be back to the hiring drawing board.

Know the difference between the right people and the right people for right now. If you're trying to build a great business that lasts, you need to think about what kind of employees the company needs in five or 10 years, not for just the end of a quarter or the next board meeting.

4. They know when to let go.

A good leader doesn't just hire the right people, they keep the right team in place and sometimes have to make tough decisions. That could mean scrapping a product, shifting priorities or letting go of a team member.

Tech CEOs have to constantly evaluate what does and doesn't align with the company's direction. If something doesn't seem like a good fit, you'll often know right away. Address it early.

Related: Bar Rescue's Jon Taffer to Entrepreneurs: Firing People Is Part of Your Job

5. They empower the team to make decisions.

In the tech ecosystem, there are a lot of talented people with different opinions. It's easy to spend all day listening to opinions without actually making movement on anything. But your job is to make your team successful.

Input, not consensus -- it's a concept I learned from Scott Kurnit, founder of About.com. A good CEO knows how to empower team leaders to make the final decision. That means establishing ownership and making sure that everyone knows their role.

6. They love the product.

The most important characteristic of a tech CEO is a deep, unwavering dedication to the product. CEOs should lead the company in being passionate about what they are selling or trying to achieve. You're the one who creates that energy not only in the company, but in the market. Without passion, you won't be able to convince investors that you have what it takes to grow the business or persuade customers that your product is right for them.

Related: The Real Measure of a CEO's Success Can Be Found in an Ancient Greek Word

Mark Josephson, CEO of Bitly, is a successful startup executive with a proven track record of building great teams and companies with staying power. Since joining Bitly in July 2013, Josephson has been an integral addition to the company, leading the progression of its product suite to support the ever-increasing power of the link.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

Why Businesses Are Relying on Automation to Survive the Labor Crisis

Robots are revolutionizing industries by addressing labor shortages and enhancing efficiency, while businesses navigate challenges like workforce adaptation and high implementation costs.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Celebrity Entrepreneurs

The Pep Talk From Mickey Mouse We All Need to Hear, Compliments of Chris Diamantopoulos

Chris Diamantopoulos, the star of "The Sticky," "Red Notice" and the voice of Mickey Mouse, gets real about resilience, chasing dreams, and his desperate wish for a normal hobby.

Productivity

6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.