The challenges faced by growing businesses are significantly different than those faced by start-ups and established corporations. As a company scales their operations, it often becomes necessary to assemble a passionate and skilled C-suite to oversee executive functions. The chief operating officer is one of the most valuable members of an executive leadership team, but not all businesses have the capacity to take on a full-time leader. As a result, many business owners have turned to using the resources provided by a fractional COO.
At 3sixty Consulting Group, we help organizations fulfill their vision, scale their operations, and implement sustainable change. In some cases, this may include hiring a fractional COO to help scale your business. By aligning ourselves with the mission of our clients, we provide results-oriented solutions for companies who wish to increase their growth using our expertise. To start the conversation, consider contacting 3sixty Consulting Group today at (404) 398-3888.
The Importance of a COO
The chief operating officer oversees the day-to-day administrative and operational functions of a company. A company’s COO is trusted to ensure that the company runs seamlessly, effectively, and profitably. They identify necessary changes that need to be made within their organization, and work to implement solutions that increase the effectiveness and efficiency of the operation as a whole. As a result, the COO is a valuable member of a C suite leadership team.
While the COO fills an undeniably crucial role in the operation of a company, the percentage of Fortune 500 and S&P 500 companies with a dedicated, full-time COO has steadily declined over the past two decades. While some of these businesses are eliminating the COO position from their organizational structure, many are opting for the benefits a fractional COO provides instead. Furthermore, fractional COOs offer a cost-effective alternative to traditional executive leaders for companies in the beginning stages.
What Is a Fractional COO?
A fractional COO is a business executive who offers their services on a temporary, part-time, or otherwise contractual basis. It is in their capacity to execute all tasks of a traditional COO, however, fractional COOs act as part-time consultants rather than full-time executives within the company. Most fractional COOs have a great deal of executive leadership experience, often having previously served in the C-suite of major corporations or private companies prior to their decision to shift to consulting work.
While the responsibilities of a fractional COO vary depending on the needs of a specific company, some typical services may include:
- Analyzing Key Performance Indicators (KPI) and other business data to offer innovative operating solutions
- Allocating resources to optimize value
- Translating the businesses’ goals into operational actions
- Overseeing and streamlining staffing processes
- Implementing processes and solutions to address productivity challenges
- Providing objective and insightful strategic input
- Building integrated operations for the company
As an outsourced professional, a fractional COO may work with a company at any level of frequency. They may also work on a project-based level, lending their skill and expertise to an organization until a project is finished.
What Are the Benefits of Hiring a Fractional COO?
Organizations across varying industries in the United States are hiring fractional COOs and other fractional executives, a trend that can be traced back to the 2008 recession. Many out-of-work executives sought contract work within a weakened market. Over a decade later, companies have reaped the benefits of fractional executives and now recognize the fractional executive model as a chance to spark strategic change and promote innovation. As such, more companies are turning to these consultants for high-level expertise without the need to budget for C-suite salary and benefits.
The advantages associated with hiring a fractional COO vary from business to business, depending on the company’s goals, mission, and objectives. Some of the most notable benefits associated with using a fractional COO include the following.
Cost Effective
As a contract employee, fractional COOs do not require executive benefits, bonuses, or other related perks.
Experience and Insight
Informed by years of experience with a diverse range of companies, fractional COOs often offer valuable experience and insight. The procedures that work for an established company are distinct from those that work for a startup, for example. A seasoned fractional COO can help implement these practices to optimize the success of a company or startup.
Remove the Burden from Less-Experienced Executives
Many startups and small businesses cannot afford to hire a full-time COO. Here, the decision-making process regarding operations typically falls to another senior-level executive who already has a busy schedule. Substantial business decisions require focused, dedicated effort. By bringing on a fractional COO, a company’s project management and operations team can focus on their roles rather than the underlying strategy behind it.
Low-Risk
All businesses owners can agree that financial and legal risks should be reduced and mitigated as much as possible. Fractional COOs possess a proven track record, meaning company executives do not need to risk hiring the wrong fit in a permanent position. If a fractional COO is not a good fit for the company, it is easier to let them go and move in a different direction.
Ultimately, a fractional COO should build and develop a company so that a full-time COO may be an option in the future as the business grows. For this reason, seeking assistance from a fractional COO may be the ideal decision to reach long-term business goals.
Learn How 3sixty Consulting Group Can Help
When it comes to entrepreneurial and business pursuits, the stakes are high. Deciding to hire a fractional COO for a company can prove highly beneficial for many businesses. Fractional COOs are focused on your company’s success. They are ready and willing to solve issues, leverage opportunities, and propel your company forward.
At 3sixty Consulting Group, we help businesses decide whether a fractional COO would be in their best interest. Taking on new executive leadership may be intimidating at first, but in many cases, these decisions produce the greatest change. At 3sixty Consulting Group, we evaluate a company holistically in order to deliver solutions that work. For more information, do not hesitate to contact us at (404) 398-3888.