“The path to the CEO’s office should not be through the CFO’s office, and it should not be through the marketing department. It needs to be through engineering and design.” – Elon Musk
What makes engineers and product designers better suited for the CEO’s office? When Elon Musk made this statement, he wasn’t trying to disrespect the finance or marketing department. Instead, he was saying that the strongest companies are led by people who deeply understand the product, how it’s built and how people will use it.
But when the person at the top doesn’t have a deep understanding of these things from product, innovation, and design, the company risks losing its core identity, which is why some companies go into bankruptcy, abrupt closing of business, customers losing interest and many more.
A report by Harvard Business Review points out that CEOs with technical backgrounds are often better equipped to drive long-term innovation because they understand the “how” behind the products, not just the “how much.”
But what does this mean? This blog post will give you a comprehensive understanding of this.
1. What’s Wrong With the CFO Route?
The CFO (Chief Financial Officer) is the money manager of a company. Their job is to balance the books, control costs, and ensure the company remains financially healthy.
That’s vital, but if a CEO only thinks like a CFO, they may focus too much on cutting expenses instead of creating new opportunities.
See how Nokia, which once dominated the phone market, but focused more on profits than innovation. Apple, meanwhile, poured money into design and user experience, and we all know how that turned out.