9 Benefits of Software Engineers Thinking Like Business People

Do the software engineers in your company engage in thinking like business people? If not, why is that? Many software organizations experience a degree of disconnect between the business side and the technical side of the company. Engineers are often isolated from the real-world challenges the business faces on a daily basis.

The Danger of Feeling Entitled

An observation I have made is that software engineering teams can feel and act entitled. As the highly specialized and some of the most expensive staff members, there can be an inherent feeling of entitlement. It’s true that engineering teams build the very products that generate the company’s revenue – it’s hard not to feel important.

However, an important part seems to be forgotten. Namely, even a great product needs someone to market it, sell it, bill for it, and provide support. Every department of the company has an important role to play in order for the company to be successful. When engineers lose sight of this, it can lead to a dangerous sense of entitlement.

The Trap of Prioritizing Technical Excellence Over Business Value

In this disconnection and feeling of importance and entitlement, software engineers can focus on prioritizing work that brings little or no business value. Such could be the case of spending countless hours on optimizing a piece of code that ultimately has little impact on the end-user. One instance of this has no material significance one way or another.

However, when this behavior keeps repeating, not just with one person, but with most of the team, the compounding effect can add up quickly. Then we end up with a very busy team, costing the company a lot of money, but producing little value.

This is a dangerous trap that engineering teams must avoid. While technical excellence is important, it should never come at the expense of generating real, measurable value for the business. Technical prowess without a clear connection to tangible business impact is ultimately meaningless.

Don’t get me wrong, I am all for technical excellence when it comes to designing, writing, and testing the software. As a technologist myself, I want the best design, the simplest and cleanest code, and no bugs in the software.

However, my point is this – if we achieve all of these technical feats at the cost of generating real value for the business, it doesn’t really matter. What good is a perfectly engineered product if it doesn’t move the needle for the company and its customers?

The opposite approach is not the answer either. Sloppy engineering that produces real value will only go so far before technical debt catches up and halts the entire operation.

The true goal should be to prioritize delivering business value, while backing it up with as much technical excellence as possible. It’s a delicate balance, but one that is essential for the long-term success of the organization.

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9 Benefits of an Entrepreneurial Mindset for Engineers

There are several compelling reasons why it is beneficial for software engineers to think like business people. This is not to say that they need to solely focus on the business and abandon their engineering responsibilities. Rather, it means having a good grasp on the company’s business model, industry, customers, and factoring that understanding into their daily decision-making.

When engineers adopt this entrepreneurial mindset, several positive outcomes can emerge:

Entitlement is replaced with humility: Understanding that their department is one part of a larger whole, rather than the main driver, can curb feelings of entitlement. Engineers will be more humble and focused on delivering genuine value.
They ask better questions: Decisions will be guided by questions like “which approach will add more value to the company?” rather than purely technical considerations.
They focus on the right priorities: Viewing tasks through a business lens helps engineers distinguish between high-impact and low-impact work, allowing them to optimize what truly matters.
They avoid wasteful optimization: Engineers will be more selective about what they optimize, focusing only on the areas that provide the greatest business benefit.
They assert technical excellence more effectively: When engineers understand the business impact, they can make a stronger case for optimizing critical systems, rather than deferring to non-technical stakeholders.
They become critical thinkers and creative partners: Instead of just executing orders, engineers will evaluate requirements through a business lens and propose thoughtful, innovative solutions.
They align better with and empathize more with other departments: The shared business understanding fosters stronger collaboration and mutual appreciation between engineering and functions like product, sales, and marketing.
They become more engaged: Seeing their role in driving tangible business value motivates engineers and increases their investment in the company’s success.
They strive to deliver real value: With a business-minded outlook, engineers are more focused on providing solutions that truly move the needle for the organization and its customers.

By cultivating this entrepreneurial mindset, software engineers can become invaluable strategic partners, aligning their technical expertise with the overarching business objectives.

Leadership's Role in Fostering a Business-Minded Engineering Team

Leaders have a critical responsibility to create a culture where their engineering teams understand the business, the customers, and think like business people. There are several key steps leaders can take to develop a more knowledgeable and engaged engineering team:

Communicate the importance of understanding the business regularly: Take the time to regularly and genuinely share the importance of engineers understanding the business. Explain how this will make them more well-rounded technologists and benefit the company and customers.
Share the business, industry, customers, challenges, and goals: Make it part of the onboarding process for new engineers to learn the basics of the business and the industry it serves. Hold regular sessions where the leadership team can share business and industry insights with the entire engineering department.
Ensure engineers understand their day-to-day impact on the business: Communicate regularly to explain how the current work and the day-to-day engineering efforts directly impact the business and customers. Discuss how that brings value, growth, and profitability. Connect the dots so it is clear for everyone.
Make work visible and tie it to real value: Maintain clear visibility into the company’s vision, goals, strategy, and initiatives. Ensure all engineering work is tied back to these overarching objectives, illuminating work that may not be contributing to the company’s priorities.
Share end results with the team: After product launches and feature releases, share the tangible business outcomes with the engineering team – such as new subscriptions, revenue growth, customer success stories, etc. This provides a rewarding feedback loop that reinforces the value of their efforts.

When leaders take these steps they can cultivate a culture where engineers embrace an entrepreneurial mindset and see themselves as strategic partners in driving the business forward. This alignment between technical expertise and commercial understanding is a powerful competitive advantage.