The Connection: March 2024 Issue #01
You may be asking what a Fractional COO is, and how they could support your business. In simple terms, it is hiring a part-time Executive consultant to support business’s operations. While this is true, the goals are much deeper and the impact can be much greater.
A Fractional Chief Operating Officer (COO) role offers invaluable flexibility, allowing business to adjust services according to their evolving needs. Businesses that engage Fractional COOs gain access to a wealth of expertise, capabilities, and knowledge without committing to fixed cost. A Fractional COO with industry and business experience, including startups, is a cost-effective solution to address operational challenges.
Hiring a Fractional COO also creates a strategic partnership that brings a fresh perspective and insightful guidance to your organization. By injecting these experts into your business, it enables organizations to navigate growth challenges confidently. Fractional COOs work with other businesses, and often have seen similar challenges and can help address your business needs quicker. They also understand not all problems are the same since each business is unique.
You will want to understand some of the top Characteristics of a Fractional COO.
- Decades of both broad and deep relevant industry and business experience.
- Strong business acumen, which aligns with the industries they are supporting.
- Diverse array of industry and professional experiences.
- Experiences with startups to 2nd or 3rd generation businesses.
- Adept at asking the right questions to find opportunities and drive meaningful change.
- Inhibit a growth mindset, strategic thinker, and most importantly a problem solver.
During the qualification stage, align key questions around your team’s bio and experiences to ensure these characteristics are met. It is also important to ensure the demeanor and personality of the Fractional COO collaborates with other executives, management teams and other employees. Since we are talking about a human centric ecosystem, introducing something new to the ecosystem and your businesses culture, a harmonious approach will not disrupt the current system before work even begins.
Common FAQs to help better understand a Fractional COO service:
Is there an operational easy button?
No, that is the short answer, there is no easy button, no silver or magic bullet to fix all things. This is the importance of aligning with Fractional COOs that understand operational differences for Service Industry versus Manufacturing Industry. Though there might be similarities, they operational management system required couldn’t be more different. You cannot apply a manufacturing operations system over a service industry business and expect success. It is critically important to align with a Fractional COO that understands your industry. Perhaps they have worked in the industry, and can help tie all aspects of your business and support teams together.
How does the Service typical Work?
Each Fractional COO service will differ slightly, but most will offer monthly retainer or fees based on a set number of hours but can also include hourly rates should additional services be required. Some also offer project-based solutions or training. Durations of the service will depend entirely on the needs of the business, but often these services are meant to help for short-term and bridge a gap to allow the company to move towards a full time hire for operations or have a team that has been developed to manage the operations after working with a Fractional COO.
How many hours per week/month would be included?
This will also differ, but most Fractional Services never want to go above 26 hours in a week, and most like to stay around 30 hours per month. This provides cost-effective solutions for businesses, based on a quarter of the typical cost of the COO. The 20–26-hour range per week can become less cost effective for the business, and this is the inflection point when hiring full-time will start to be discussed.
Can the Services work remote or need to be in person?
The services will be a combination of remote and in person. It will be important to hold some key meetings, or training courses in person, to have a much better experience, while most of the work can be done remote. This does not mean that a Fractional COO will be off behind the scenes. Weekly and sometimes daily interactions with the team needs to match that as if the Fractional COO was a full-time employee.
Are there other Fractional Executive roles?
Yes, there are many diverse types of Fractional Executive Firms out there, some have a broader approach, while others focus on certain industries or offer only CEO, CFO or COO solutions. It is important though that having a Fractional COO that has been in a CEO or Leadership role and has worked with CFO or Fractional CFO services.
Interested in learning more about Connective Consulting Group, reach out to us today to set up a meeting to discuss how Our Fractional COO services can support you and our business. info@connectiveconsultinggrp.com
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