Middle Market Smart · Episode 2

Building Capabilities, Not Just Chasing AI with Tracy Deuell (CXO Partners)

In this episode of Middle Market Smart, we sit down with Tracy Deuell and shares how leaders can stop chasing every new tool and instead focus on building capabilities that drive real business outcomes.

38 mins · Tracy Deuell, Managing Partner, Technology Strategy Services, Industrials Practice Lead, TechCXO

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View Episode Timestamps
00:00 – Intro: AI, technology, and the accelerating pace of change 00:32 – Meet Tracy Deuell (CXO Partners) 00:51 – What an interim CIO actually does 01:21 – Gap coverage vs. transformation roles 02:57 – Working alongside existing tech leaders 03:59 – What companies are really asking for (hint: not just AI) 05:14 – Why leaders struggle to connect AI to business goals 05:29 – "Don't let tech wag the dog" framework 08:04 – AI as a catalyst for automation 11:58 – How to keep up with rapid innovation 12:11 – Why leaders can't know everything (and shouldn't try) 15:51 – Why IT has the "best seat in the house" 18:11 – What actually changes when companies scale 18:58 – Industry differences: manufacturing vs fintech vs distribution 21:55 – Driving ROI from technology investments 22:29 – Real-world example: scaling with broken systems 24:35 – Why most CRM implementations fail 26:07 – Non-negotiables in transformation 28:34 – When to slow things down and refocus 30:36 – Why everything must tie back to business strategy 30:49 – Maximizing existing tech before buying new tools 31:34 – Does AI actually reduce costs? 31:43 – Efficiency vs. shifting investment 34:00 – CIO vs CTO vs Chief AI Officer 34:37 – Where CISOs fit in the AI era 35:56 – How to think about AI in the next 12–18 months 36:19 – Final advice: focus, prioritization, and change management 37:57 – Outro

Episode Summary

The middle market is moving faster than ever, and technology is at the center of the storm. In this episode, Tracy Deuell, Managing Partner at CXO Partners, unpacks how AI, automation, and digital transformation are reshaping mid-market businesses.

In this episode of Middle Market Smart, we sit down with Tracy Deuell and shares how leaders can stop chasing every new tool and instead focus on building capabilities that drive real business outcomes. From aligning technology with growth strategies to scaling operations from $80M to $250M, or even beyond, he provides practical insights for CEOs and executives navigating rapid change.

Downloadable Resources

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  • Tracy Deuell

    Tracy Deuell is an experienced direct and interim CIO having supported several companies in their transformation or turnaround efforts. He brings more than 30 years of experience with a proven track record of developing and delivering aligned IT strategic solutions to achieve desired business outcomes.

    Read Tracy Deuell's Bio Connect on LinkedIn

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