What is a Fractional COO?
While you may be familiar with the role of the Chief Operating Officer (COO), A 2020 article on Forbes.com explained how fractional COOs have a few significant differences that make them an attractive option for small businesses that are ready to grow and scale.
Here are some of the ways the role of the fractional COO have been described:
symbiotic leadership partners who provide fresh perspectives
an independent consultant, who acts a Chief Operating Officer
the key that unlocks business growth
How Can You Know If You Need a Fractional COO?
The Forbes article offered 4 telltale signs:
You’re spending most of your time working in your business instead of on your business.
You constantly feel overwhelmed and like you’re struggling in your company every day.
You need to strengthen and solidify your leadership team.
Your company is at a point where it needs to grow significantly and scale operations.
What Will A Fractional COO Do for Your Business?
Fractional COOs are there to help bring the CEO’s vision to life. Here are some of the many ways that fractional COOs deliver value to a small business:
Operational Assessment: Reviewing business operations to improve operational efficiency
Strategic Planning: Creating a feasible plan and taking the necessary steps for implementation
Process Improvement: Fine-tuning your operational processes and procedures
Supply Chain Management: Refining your logistic channels and inventory investments
Organizational Development: Maximizing your resources for a stable future
Change Management: Assisting you through changes in the organizational structure
Risk Management: Identifying and mitigating threats to earnings and capital
KPI & Metric Reporting: Identifying and assessing the measurements for performance
Exit Planning: Developing a long-term vision for a clean exit
What Are Some of the Benefits of Hiring a Fractional COO?
Fractional COOs came into existence to meet the unique demands that small businesses have. Businesses should expect to see the following improvements or benefits from making the decision to hire a fractional COO:
Access to the insight and expertise of a top operations executive at a lower cost
Ability to customize their compensation based on your budget
As a contract employee, a fractional COO does not require an elaborate executive hiring process or executive benefits, bonuses or perks
Typically, a fractional COO works remotely with your company and does not require permanent office space
The fractional COO is there to work themselves out of a job — they build your company so you can afford a full-time COO in the future
If the fractional COO does not work out, you can end the let them go with less paperwork & fewer legal concerns than a full-time COO
What Should You Look For In a Fractional COO?
An outsider - Your fractional COO should come from outside of your organization. They will be better able to offer a fresh perspective and they won’t be limited by existing internal relationships or politics.
Someone you can trust - Your fractional COO should be someone you feel like you can open up to, like they understand and support you and your business without judgement. You also need to be able to understand them - your fractional COO should speak the language of your people and your business, not confusing consultant-speak.
A cultural fit - Since your fractional COO will be responsible for implementing the processes and ways of working at the core of your business, be sure that they are on the same cultural wavelength, so they can design with your company’s values and beliefs in mind.
Has the right experience - Your fractional COO will likely be experienced in many areas of business operations, but you should be sure that they have specific experience with the type of operations structure you want to establish.
