Geek Speak to Investor Speak - Rethinking Technology Communication to Board of Directors and Investors?
Communicating technology strategy to C-Suite leaders and Boards of Directors can feel like explaining quantum physics to a third grader — it’s complex, but with the right framing, it can result in a huge leap in understanding.
Communicating technology strategy to C-Suite leaders and Boards of Directors can feel like explaining quantum physics to a third grader — it’s complex, but with the right framing, it can result in a huge leap in understanding.
The reality is that CIOs and technology leaders often focus on infrastructure, cybersecurity, and cloud migration, while shareholders and fiduciary managers about EBITDA impact, risk mitigation, and value creation. If you walk into a boardroom talking about “hyperconverged infrastructure” instead of “operational efficiencies that increase margin,” you might lose your audience before you even start.
For investors, shareholders and representative board directors, IT isn’t just about operations—it’s a strategic asset that can drive profitability, improve portfolio performance, and support successful exits. By shifting from technical jargon to investment-driven language, CIOs can build alignment, secure funding, and integrate technology as a key driver of financial returns.
Why Rethinking Tech Communication Matters in PE & Finance
According to a McKinsey study, private equity investors with strong technology due diligence and digital transformation strategies see 2.3x higher portfolio company valuations compared to those with a passive IT approach. Another report by Bain & Company found that 70% of PE-backed companies fail to capture the full value of technology investments due to misalignment between IT and financial leadership.
If CIOs translate IT strategy into PE-friendly financial metrics, they can position technology as a multiplier—not just a cost center. Instead of presenting IT as a “spend,” they should frame it as a driver of cost optimization, top-line growth, and risk-adjusted returns.
My fellow technology leaders, let's do better.
In today’s investment landscape, technology isn’t just about keeping the lights on—it’s a strategic lever for profitability, risk management, and value creation. CIOs and tech leaders who shift their communication from “geek speak” to “investor speak” can secure more buy-in, drive digital transformation, and position IT as a revenue enabler rather than a cost center. By framing discussions around EBITDA impact, operational efficiencies, and exit readiness, technology executives can bridge the gap between IT strategy and financial success.
And remember—if you walk into a boardroom talking about hyperconverged infrastructure instead of margin expansion, don’t be surprised if the only thing getting optimized is your audience’s ability to nap. ??
10 Technical Terms CIOs Should Replace When Speaking to PE & Finance Professionals
5 Ways Technology Leaders Can Optimize Communication for Private Equity & Alternative Asset Finance
Frame IT as an Asset for Value Creation, Not a Cost Center
?? Instead of talking about IT budgets, discuss capital efficiency, cost-to-revenue ratio improvement, and EBITDA uplift.
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? Example: “Our cloud transition will improve cost predictability and reduce CAPEX-to-OPEX, improving free cash flow.”
Quantify the ROI of Digital Investments in Portfolio Companies
?? PE and VC firms need clear financial metrics—highlight IRR, time-to-value, and technology-driven revenue expansion.
? Example: “Implementing AI-driven automation will reduce SG&A expenses by 15% and increase operational margin by 3%.”
Shift Cybersecurity from Compliance Talk to Risk Management & Business Continuity
?? Investors care about reputational risk, operational disruptions, and regulatory fines—not just firewall updates.
? Example: “A proactive cybersecurity strategy reduces breach risk, protecting valuation and investor confidence.”
Highlight Scalability & Exit Readiness in IT Strategy
?? PE firms want IT strategies that align with growth, M&A, and exit timelines—ensure systems support scale, not just current operations.
? Example: “Our IT infrastructure ensures seamless integration during roll-ups, improving acquisition efficiency.”
Use Financial Language, Not Tech Jargon
?? Stop talking about “data lakes” and start talking about monetizing data for revenue insights and customer intelligence.
? Example: “Optimizing data assets will drive personalized pricing strategies, increasing revenue per user by 12%.”
#PrivateEquity #TechnologyStrategy #ValueCreation #DigitalTransformation
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3 周Thanks for sharing! And nice touch with the south park creative@
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3 周Matt H. I 100% agree with this. One challenge I have found in addition to the ones you point out is how to present all tech initiatives in terms of direct EBITDA impact. I believe most value creation initiatives are “enablers” and thus the total EBITDA impact needs to be evaluated as a combination of process and technology. There are obvious direct EBITDA improvements such as operational efficiencies/cost takeouts; yet there are some gray areas such as cyber where the EBITDA impact would be a projected impact that is based on a likelyhood of occuring.