Whether you’re just starting out, or have been running a business for several years, it’s easy to get bogged down in the day-to-day. Those tasks are critical to keeping things moving. When it comes to necessary (if often tedious) work, it has to fall on someone. But does that “someone” always have to be the CEO or Executive Director?
No.
If keeping up with operations has you falling behind in executive tasks, hiring a fractional COO is likely a powerful way to get ahead and unlock new potential for you and your team.
What is a Fractional COO?
A Fractional COO works with Small-to-medium-sized businesses (SMBs) and nonprofits to offer management and strategy solutions to businesses on a part time basis. Fraction COOs provide the leadership and expertise to help businesses improve their productivity and efficiency without having the added costs of bringing on a full-time COO.
“Fractional” refers to their time commitment. Compared to a full-time COO, they work for you for a fraction of the time, according to what you need (and when you need it). Some Fractional COOs work on a particular project or area of your business, so their time commitment varies accordingly. Others work for a few hours a week, taking care of overflow tasks. A Fractional COO can also be a thought partner, available to bounce ideas around when you need a listening ear.
Hiring a Fractional COO: 6 Key Benefits
If you’ve been wondering whether a Fractional COO is a good fit for your business or nonprofit, consider how your business might transform with these benefits.
Cost-Efficiency
Since you’re only hiring a Fractional COO when you need them, you’re only paying for the services you need. Even if you need them more during certain seasons or business cycles than others, you still avoid the onboarding, training, benefits and compensation costs you incur when hiring someone full-time.
To put it another way, a Fractional COO guides “your small business through the growing pains that hold it back from achieving its ideal future state — at a fraction of the cost of a traditional full-time COO role. . .[Y]ou gain all the wisdom, experience, and strategic planning from an executive-level hire, without a salary commitment, signing bonus, or other perks expected from an in-house COO1”.
Operational Efficiency
Because operations is their focus, you’ll witness business processes and procedures run more smoothly across the board, without the near-constant loops of oversight and intervention you get stuck in when having to do it all.
“A Fractional COO has the skills to streamline your operations, reducing waste and increasing productivity. . .They identify inefficiencies, propose solutions, and oversee the implementation of changes2”, so you can focus on leadership, growth, and other priorities that align with your executive responsibilities.
Productivity
With all this in mind, it’s easy to see the positive impact of hiring a fractional COO on productivity. You and your team get more done because you have an additional, experienced leader in your corner, dedicated to solving operational problems, finding workable solutions, and getting results.
Getting more done in the same amount of time, and at a cost savings, also sets you up for greater profitability over time than if you and your team were to go it alone.
Flexibility
One of the most valuable benefits of hiring a Fractional COO is how completely customizable their services are to your business. Some are project-based, helping you get over the finish line for your most important initiatives. Others are there for their objectivity, helping you problem-solve and troubleshoot without the biases that come from being “in the thick of it” as a full-time employee. The most effective Fractional COO support will come from someone ready to grow, scale, and adapt their support to your business as things change for you and your team.
Hands-On Approach
You might be thinking, “If I only need “fractional” support for my business or nonprofit, why not just hire a consultant?” Consultants are indeed experts in many areas but typically work only on a project basis to make recommendations while a Fractional COO is hired for management of all areas of operations. Additionally, a consultant typically makes educated recommendations but doesn’t provide full execution. A Fractional COO, on the other hand, implements and executes business operations so things keep moving, and your business keeps growing.
Specific Expertise
Finally, Fractional COOs have the specific expertise you need to excel in your field or industry. A fractional COO should have strategy and project management expertise. Your most successful fractional support will come from someone who’s “done the work” in a range of businesses and organizations. They understand the unique challenges you face, and the ways in which you and your team must adapt to find the greatest success.