The fundamental business purpose of engineering is not the act of writing code, but applying technical skills to achieve concrete financial outcomes. All engineering work ultimately serves one of these two goals: increasing revenue or reducing costs.
When hiring senior engineers, the crucial test is whether they can build. This means assessing their ability to take a real-world business problem—like designing a warehouse system—and translate it into a tangible technical solution. This skill separates true builders from theoretical programmers.
Beyond vision and roadmaps, a CPO’s fundamental role is to act as a steward of the company's R&D investment. The primary measure of success is the ability to ensure that every dollar spent on development translates into tangible, measurable enterprise value for the business.
Technically-minded founders often believe superior technology is the ultimate measure of success. The critical metamorphosis is realizing the market only rewards a great business model, measured by revenue and margins, not technical elegance. Appreciating go-to-market is essential.
With AI agents automating raw code generation, an engineer's role is evolving beyond pure implementation. To stay valuable, engineers must now cultivate a deep understanding of business context and product taste to know *what* to build and *why*, not just *how*.
A critical career inflection point is moving from solely executing tasks (writing code) to influencing strategic decisions about what problems to solve. True value and impact come from being in the room where decisions are made, not just being the person who implements them.
To get product management buy-in for technical initiatives like refactoring or scaling, engineering leadership is responsible for translating the work into clear business or customer value. Instead of just stating the technical need, explain how it enables faster feature development or access to a larger customer base.
To prevent engineers from focusing internally on technical purity (e.g., unnecessary refactoring), leaders must consistently frame all work in terms of its value to the customer. Even tech debt should be justified by its external impact, such as improving security or enabling future features.
Technical executives often fail in interviews with PE firms because they can't articulate the business value of their work. Candidates must prepare to speak like they're in a board meeting, clearly connecting their initiatives to measurable outcomes like cost savings, revenue lift, or efficiency gains.
In the Code AGI era, the ability to build software is commoditized. The scarce and highly valuable skill for business operators is now the mindset to proactively identify any operational challenge or workflow friction and reframe it as a problem that can be quickly solved with custom software.
An engineering background provides strong first-principles thinking for a CEO. However, to effectively scale a company, engineer founders must elevate their identity to become a specialist in all business functions—sales, policy, recruiting—not just product.