CTO Series: The Anti-Scaling Paradox: Why and When a CTO Should Refuse to Grow His Team with Markus Hjort

In this BONUS episode, we dive into a fascinating conversation with Markus Hjort, Co-founder and CTO of Bitmagic. With over 20 years of software development expertise, Markus shares invaluable insights on tech leadership, team scaling, and how AI is transforming the landscape of software development. From pivotal career moments to practical advice on aligning tech strategy with business objectives, this episode offers wisdom for technology leaders and developers alike.

Defining Moments in Tech Leadership

"As a leader, for me, it is important that we have a positive attitude."

Markus reflects on two pivotal experiences that shaped his leadership philosophy. Early in his career, he received feedback about his positive approach to challenging tasks, which reinforced his belief in maintaining an optimistic outlook when facing difficulties. This approach has allowed him to inspire team members during tough situations. The second defining moment relates to estimation skills. After participating in a rescue mission for a delayed project, Markus learned the importance of making realistic ballpark estimates rather than succumbing to unrealistic deadlines. His initial two-year estimate for a project was met with resistance from a client who wanted it done in two months, but the project ultimately took four years to complete - twice his original estimate.

Leads by example with a positive attitude toward challenges
Values the skill of making quick but realistic ballpark estimates
Recommends "Programming Pearls" for developers to improve estimation skills
Emphasizes that product developers should create different options to reach goals

In this segment, Markus refers to the book Programming Pearls.

Aligning Tech Strategy with Business Objectives

"Nothing should come for me as a surprise."

When it comes to ensuring tech strategy supports business goals, Markus emphasizes the importance of continuous communication with key stakeholders. Through regular informal discussions, he stays aware of emerging ideas and maintains strong relationships with decision-makers. This approach helps him anticipate future feature requirements and translate technical strategy into business objectives. The foundation of this alignment is built on trust and transparency.

Maintains constant discussions with critical stakeholders
Develops awareness of emerging ideas through informal conversations
Identifies and builds relationships with decision-makers
Translates technical considerations into business language

Fostering Collaboration Between Tech and Business Units

"In the end we create the shared understanding and the habit of working together which creates better alignment and trust."

While structured meetings are important, Markus believes that true collaboration happens when people work together across departmental boundaries. In previous roles, he implemented small, cross-functional teams that included business representatives during feature development. At Bitmagic, they conduct regular gameplay test sessions that anyone in the company can join, fostering unpredictable connections and conversations. These informal interactions are especially valuable in a remote-only company.

Creates small teams with business representation for feature development
Implements regular demo sessions open to everyone in the company
Encourages cross-departmental work to build shared understanding
Emphasizes the importance of informal discussions in remote environments

Scaling Engineering Teams Strategically

"You have to be careful when to scale, and when not to scale."

Markus advocates for a measured approach to team growth during scaling phases. He believes in small teams of talented individuals and prefers to grow at a deliberate pace rather than rushing to add new members. Sometimes, he's even paused hiring to focus on meeting milestones with existing resources. When rapid scaling is necessary, Markus recommends considering contractors to reduce risk and gain specialized expertise quickly, particularly in fields like gaming that require deep specialization.

Believes in small teams of talented individuals
Grows team size at a deliberate pace
Sometimes pauses hiring to focus on delivery with existing team
Strategically uses both employees and contractors based on circumstances

Navigating Financial Challenges in Startups

"From the tech view it was clear this was not a good idea, but from the business perspective, it was the right decision to make."

One of the toughest challenges Markus faced involved making difficult decisions during financial constraints. In a previous startup, when resources were tight, he had to split his team between the main product and a "side project" that had been sold to generate revenue. Though technically suboptimal, this business-driven decision was necessary for survival. This experience highlights the complex balancing act CTOs often face between technical ideals and business realities.

The Impact of AI on Software Development

"It has changed my way of thinking of my work as a programmer."

Having worked on AI-powered game development for over two years, Markus has witnessed the rapid evolution of AI technologies. This experience has influenced his approach to team expansion, as he considers how AI might augment human capabilities. Personally, he now uses code assistants regularly and wouldn't return to traditional programming methods. AI has transformed his workflow as a programmer and expanded his capabilities, particularly as a full-stack engineer.

Measuring Engineering Success Beyond Metrics

"In early startup stages, one of the critical metrics is 'the working software.'"

Rather than relying heavily on rigid metrics, Markus focuses on practical indicators of success for engineering teams. In early-stage startups, he prioritizes the frequency of releasing working software to end users. Additionally, he monitors team energy and morale, looking for signals in commit messages and code review comments that might indicate the team's well-being. As teams grow, he sees value in using tools to help track these emotional indicators systematically.

Focuses on frequency of releasing working software
Monitors team energy and morale as key indicators
Looks for signals in commit messages and code reviews
Considers team well-being as important as technical output

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