The above quote from none other than the richest man alive may rub some people the wrong way.
Technology, after all, has propelled the U.S. into the superpower that it is today. The pursuit of better knowledge and better technology set off the Scientific and Industrial Revolutions, saw the advent of the assembly line, and ushered in the Information Age we live in.
But “technology is more than just a tool” is misleading because it asserts that technology, in and of itself, has the power to change things. That simply learning and buying new software will somehow make your business better.
The truth is that technology has no agency at all. It really is just a tool. Bill Gates didn’t become the modern-day Rockefeller by treating technology as anything more than a tool. But he, like the teacher in his quote, saw its broader applications.
Here are 5 things great leaders know about technology:
1. Technology won’t make you a better leader
As much as we wish it were otherwise, the answer is no. Technology cannot make a good leader a bad leader, and it cannot make a good leader a great leader. (If this were true, Xerox would probably be Apple.)
2. Technology won’t make your business better
Technology also won’t make your business better. It won’t make your product better, either. You can spend $100,000 on new SaaS overnight and get a ROI of exactly 0% if you don’t know how to use your new tools.
Take it from a marketing automation veteran — I’ve seen huge companies waste more money than you’d care to imagine buying great products and using them poorly.
But I’ve also seen small companies buy simple but affordable products and apply them with great success.
3. Technology may make you more efficient
Efficiency is an interesting concept. It means “doing more with less.” But when you think about it, the implementation of technology in any workplace tends to have a counterintuitive effect.
In terms of head count, technology will certainly make your company leaner. But when it comes to workloads, people tend to be doing way more than they used to. When a tool is too efficient, the person wielding it will inevitably do more work.
The Economist found that, on average, employees around the world are working slightly less now than they did in 1990.
But this is a misleading finding because, while people are working slightly less in terms of hours per week, they are all doing much more work than their parents ever did. This leads to burnout, especially among managers.
So, while technology does make you more efficient, it also tires you out, which ultimately makes you less efficient.
4. Technology should lower your overhead
Greater efficiency means a lower head count, and a lower head count should mean lower overhead. (If it doesn’t, you’re doing something wrong.)
Lower overhead is one of the few absolute benefits of technology. No matter how bizarre your business model is or mismashed your management, your costs will go down.
5. Technology can help your company learn faster
But the greatest advantage of technology is the one described by Bill Gates in his quote. The teacher is always the most important. Technology is just a tool, but it is a tool that will help you be a better teacher.
Every successful company is less like a well-oiled machine and more like an excellent classroom. One in which the teacher encourages proactive learning, team building and innovative discussion. If you’ve ever been fortunate enough to enjoy a class like that, you’ll know exactly what I mean.
When it comes down to it, having technology isn’t nearly as important as how you use it. As I mentioned previously, a lowly startup can become an Alibaba with the right tech and the right teachers in place.
The best companies, like the best classes, see everyone participating.
