The Future is Fractional: Fractional COO vs Full-Time COO

The Future: Fractional COO

Every business eventually reaches its operational threshold — the critical point where its CEO (or existing leadership team) can no longer keep up with the day-to-day procedural demands of their enterprise.

I have served many business owners who were facing this exact dilemma. In each scenario, the client had the same perspective: "I have to hire a COO".

My response?

"Yes and no."

If you're confused— don't worry, my clients were too.

Let me explain.

There comes a time when a Chief Operating Officer can help scale your business to the next level.

There are now new options to help fill the need of a COO that doesn't have to take the traditional approach of hiring a COO.

Many entrepreneurs assume they need to set up an extra office, budget a full-time salary, and hire a qualified professional who will show up on site every day. After all, that's the way things have always been done.

Well, until now, at least.

Today, thanks to the rapid advancement of technology, business owners can hire Fractional COOs— a practice that comes with substantial benefits.

I'll be sharing more about what those benefits are in just a moment.

But first, let's lay a little groundwork.

What is a Fractional COO?

A Fractional COO is a qualified executive who offers their services on a contractual basis. Some Fractional COOs work on-site in their client's offices part-time, while others work remotely.

What Does a Fractional COO Do?

A Fractional COO is capable of completing any and all of the tasks a traditional Chief Operating Officer would be responsible for. They are, essentially, a COO consultant. The vast majority of Fractional COOs have served as executive leaders at major corporations or private companies, and eventually decided to offer their services on a freelance basis.

Typical Fractional COO services include:

Analyzing business data (analytics, KPIs, etc.) and producing business reports
Providing unbiased and insightful strategic input
Overseeing staffing practices (Interviews, training, evaluations, etc.)
Delegating of tasks and projects to appropriate team members
Implementing processes and technological solutions to address productivity hindrances
Acting as second-in-command when major business decisions must be made

Why More Businesses Are Choosing to Hire a Fractional COO

There are many advantages associated with hiring a part-time COO.

Some of the most notable advantages include:

1. Strategic Expertise

As mentioned above, outsourced COOs are highly skilled and educated. The vast majority of Fractional COOs have several years of experience at the executive level. They understand the broad range of challenges that can impact a business and have the tactical skills required to navigate such challenges successfully. These individuals have the foresight, resiliency and competency to deliver COO services that will help business owners expand with excellence.

2. Flexibility

Traditionally, hiring a COO meant recruiting a full-time team member. Unfortunately, however, many entrepreneurs and businesses do not have enough work to validate a full-time position, or they may want to maintain their ability to reduce services if they experience a slow period. In these cases, working with a COO consultant can be extremely favourable. It allows business owners to complete the loops within their companies in a sustainable, adaptable way without risking their future stability.

3. Affordability

This is the most critical reason why entrepreneurs decide to hire a Fractional COO. After all, in business, every really does boil down to the bottom line. When seeking an executive leader to assist with operational demands, most entrepreneurs are entirely aware that they need to eliminate interruptions, inconsistencies and surprises— and they know they can't do it alone. They've acknowledged the problem and they aren't standing in their own way.

Instead, it's their financial capacity to pay a full-time COO that's fencing them in, so to speak.

Fortunately, hiring a Fractional COO is can completely resolve this concern. COO consultants can work as little or as much as the business requires, and many offer their services at a significantly lower rate than you'd spend on hiring a full-time executive.