It can be exciting to be part of the earliest phases of a startup. It's a whirlwind of activity, where a small, dedicated team is rapidly figuring things out, often doing nearly everything at once. But when the time comes to grow, a critical and often difficult transition must occur: roles need to start taking shape.
This process requires self-reflection and, in many cases, a great deal of humility from the founding team.
The Title Inflation Trap
There is a strong temptation to assume executive titles for all early participants as a reward for their hard work and loyalty. While well-intentioned, this can be a fatal mistake. A title is a description of a responsibility, not a reward. Treating it as such robs your organization of future capabilities by potentially misplacing talent or preventing you from hiring the specific expertise you truly need for the next stage.
There are specific, demanding responsibilities that come with an executive title, and they may not align with the existing skills of the early team members, no matter how talented they are. The most common example of this is the assumption that the first or most senior engineer should automatically become the Chief Technology Officer (CTO).
The Founding Engineer vs. The CTO
The role of a great founding engineer and the role of a great CTO are fundamentally different. Confusing the two is a classic scaling error.
- The Founding Engineer is a Master Builder. Their primary value is in their hands-on ability to create a working product from nothing. They are a brilliant individual contributor, a problem-solver who lives in the code, and the person who can build the V1 at lightning speed.
- The CTO is a Strategic Force Multiplier. Their primary value is not in writing code, but in building the system that allows others to write great code. Their responsibilities often shift focus entirely:
- People: Hiring, managing, and mentoring a growing engineering organization.
- Process: Establishing the culture, architecture, and SDLC that will allow the company to scale.
- Budget: Managing the technology budget and making strategic buy-vs-build decisions.
- Strategy: Representing technology at the executive level and ensuring it aligns with the company's long-term business goals.
A phenomenal founding engineer may grow into this role, but it is not the default path. Promoting them into a position that doesn't align with their skills is a disservice to them and a danger to the company.
The Pragmatic Path Forward
The best approach is a pragmatic one. Before handing out titles, take an honest look at what each person has contributed and, more importantly, what they are best at and what they enjoy doing.
- Define the Roles First: Forget about the people for a moment. What are the key leadership responsibilities the business needs right now to get to the next level? (e.g., "We need someone to manage the engineering budget and hiring plan.")
- Assess Skills, Not Seniority: Now, look at your existing team. Who has demonstrated the skills and inclination to take on these responsibilities? I have worn multiple hats at early-stage companies more than once and had to research what my role was most like before assuming the title.
- Identify the Gaps: This honest assessment will reveal your true gaps. You might realize your founding engineer is most valuable as a Principal Engineer or Architect, and that you need to hire an experienced VP of Engineering to handle the people management.
This isn't about demoting anyone; it's about putting your best players in the positions where they can have the most impact. Don't jump into the deep end before learning and embracing your role. Your entire organization's future depends on it.