41 min

From Writing Code to Managing AI: Chris Morbitzer on the New Role of Software Teams

Northbuilt CEO Chris Morbitzer on leading engineers through the shift to AI, why planning now matters more than coding, and how AI is changing agency margins.

AI in software developmentchange managementdelegationagency business modelsvalues-based leadershipmanufacturing technology

Guest

Chris Morbitzer

CEO, Northbuilt

Chris Morbitzer is the CEO of Northbuilt, a Minnesota-based software firm that helps mid-market manufacturers fix the technology holding back their growth. A self-taught programmer since middle school, he led engineering and product development at a software startup before co-founding Northbuilt during the early months of COVID. The firm runs on three values: family, conscientiousness and craftsmanship.

Key Takeaways

  • 1.Everyone is becoming a manager — engineers now direct AI the way a manager delegates to a team, a learnable skill with right and wrong ways to do it.
  • 2.Put the time in up front — thoughtful requirements and context documents make the build faster and avoid the slow, frustrating last 20%.
  • 3.AI is an accelerant, not a shortcut — it shortens delivery times, but the bigger gain is engineers spending more time on the problem.
  • 4.Change management is the overlooked part — giving up writing code feels like an identity crisis for many engineers.
  • 5.Make room to learn together — Northbuilt set guardrails, brought in experts, and ran group sessions on a real client deliverable.
  • 6.Agency margins will compress — when knowledge and execution are commoditized, competitive pressure pushes prices down.
  • 7.Move above execution — Northbuilt now leads with leadership and advice rather than software development.
  • 8.Judgment is the lasting skill — telling truth from fiction matters more as AI makes information cheap.

Full Transcript

5:29
Chris Morbitzer

The work we do isn't going to last. The copy I write for a website or the mobile app I build will probably be obsolete within this decade. That means the things that do last, like family, matter more now, not less.

8:12
Chris Morbitzer

Using AI doesn't remove our responsibility to produce solutions that meet the customer's needs and last. Our rallying cry is built to last. That doesn't change just because I told a robot to build it.

11:17
Chris Morbitzer

If our engineers are spending more time thinking about the problem and less time writing boilerplate and doing tedious admin, that's value for the customer. That's the kind of work we were supposed to be doing as humans anyway.

12:46
Chris Morbitzer

These tools get you 80% of the way with a couple of hours of prompting. But you spend so much time on the last 20% that you don't end up saving much. Our engineers direct it properly from the start, so they aren't spinning cycles at the end.

14:23
Chris Morbitzer

One of the biggest ways work is changing is that everybody is becoming a manager, whether they realize it or not. You're managing robots instead of people.

17:20
Chris Morbitzer

The biggest overlooked piece is change management, and that's a leadership challenge. I had to see it for myself, cast the vision, and then walk alongside my team with empathy while they were a few steps behind.

18:46
Chris Morbitzer

Writing code was never the value I brought. The value is a real solution to a problem a customer actually has. Whether I write the code, lead a team of engineers, or lead a team of AI, that's the part that matters.

21:08
Chris Morbitzer

Most new technology gets adopted from the bottom up. AI went the other way: it started with the CEO. Managers already know how to get outcomes through delegation. Now they're delegating to a robot.

24:00
Chris Morbitzer

We made regular space for learning. We'd take a real client deliverable, put it on the big screen and work through it with AI as a group. What worked? What didn't?

26:16
Chris Morbitzer

In a world where knowledge and execution are commoditized, that work is going to see continual and severe margin compression over the next ten years. What doesn't go away is human judgment, discernment and wisdom.

32:24
Chris Morbitzer

We're changing our service mix. I'm not even leading with software development with prospective clients anymore. I lead with leadership. They just need someone to figure out the problem.

36:02
Chris Morbitzer

When a new AI tool comes across my desk, my filter is: does it solve a problem I've heard from one of my customers? If not, come back later.

FAQ

Frequently asked questions

How is AI changing the role of software developers?

Developers are becoming managers of AI, says Chris Morbitzer. More of their time goes into understanding the problem and writing clear requirements, and less into writing code. At Northbuilt, he says engineers now write almost no code by hand.

Does AI make software projects faster?

Yes, but less than people expect. AI can get a project most of the way quickly, but the last 20% often eats the savings if the work was rushed. Chris's engineers plan carefully up front so the build goes smoothly, which makes AI an accelerant rather than a shortcut.

How do you lead a team through AI adoption?

Treat it as change management. Chris recommends leaders try it themselves first, show real examples of what they've done and how long it took, set policies and guardrails, and make regular time for the team to learn together on real work.

How will AI affect agency margins and pricing?

Chris expects severe margin compression for execution work over the next decade, as knowledge and delivery become commoditized. Even retainers and value-based pricing will feel competitive pressure, because clients will expect some of the efficiency gains. He suggests at least passing through AI token costs.

How should agencies stay up to date with AI tools?

By filtering. Chris judges every new tool by one question: does it solve a problem a customer has told me about? If not, he sets it aside, however much attention it's getting.

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