Should I Use A Fractional Executive?
The term 'fractional executive' has been used more and more over the past few years; however, that doesn't mean that it's a relatively new thing. Many people are uncertain about what a fractional executive is, let alone how they can help with leadership in their business.
Because of a lack of understanding, many business owners make the wrong decision about whether they should have a fractional executive. While hiring a fractional executive depends on your business, there are some benefits in the role, especially for start-ups and other small businesses. In most cases, they will help fuel growth and bring your business to where it needs to be.
What Is A Fractional Executive?
Fractional executives, often called fractional integrators, are leaders who take up a part-time position in your C-suite of employees - such as CEO's and CFO's. Most of the time, fractional C-level executives have experience with major firms and bring different skills and expertise to the role.
Often, fractional integrators may only work part-time or in a freelance capacity but can have the same kind of impact on your business as many of your full-time staff. Not only do fractional executives bring their skills to your business, but they may also lend a certain amount of credibility to your business too.
What is the Difference Between “Fractional” and “Interim?”
While there aren't significant differences between interim and fractional, a few key components separate them. When an employee is assigned a role in the interim, there is an understanding that someone else will fill the position, and there is an active search for the open position. The interim employee is temporary and will assume their usual duties within a short time. Interim and Bridge Integrator are more similar in that regard. A Bridge Integrator is brought on as someone who can bring your company to the next level with the intent to hire a full-time Integrator after their goals are met. A Fraction Integrator is brought on for a part-time role with no plans to leave the company after a specific set of KPI's are reached.
What Are The Benefits Of A Fractional Executive?
There are some areas where fractional executives can help your business. After all, they may be more experienced in the business world than many other people on your team. Because of that, they can add unique and knowledgeable input to these areas.
· Leadership
Being a great leader doesn't come naturally to many people; many business owners may need some help in that regard. However, a fractional integrator has already been where you are and was able to help lead their business to success by working alongside your company’s visionary leaders.
While your business doesn't need to have bad leadership to justify bringing on a fractional executive, if appropriately filled, the role can bring it to a whole new level. Having a fractional integrator on your team can mean the difference between success and failure in the long term for your business.
· Scalability
One of the biggest things that elude many small business owners is when to scale up their business and how fast they should do so. However, since many fractional integrators have already been where your business is, they would be more capable of knowing when you should scale.
Not only do they know when you should or shouldn't begin scaling your business, but they'll also have a more precise input on how fast your business should scale. While this is highly dependent on some business areas, such as profit margins and more, a fractional integrator will be able to guide you toward the best decision.
After all, business isn't a one size fits all scenario. A fractional integrator will bring a level of experience to help you make the right decision and increase the efficiency of your business.
· Financially
These kinds of employees may be more expensive than most of your other staff. With that in mind, they may seem like a risky investment. However, what many people fail to consider before beginning an executive search is how much of a positive impact a fractional integrator can have on your business.
While they'll be costing you more on an hourly basis, they will help guide you toward a more successful business. As the business grows, you'll start to see a higher profit margin for your products or services. Because of that, they're a financially sound investment to make.
· Coaching & Mentorship
Many more traditional employees that you end up hiring may need some form of coaching or mentorship while they're coming on board. Doing so could extend into a certain amount of their initial time with the company. However, the reverse is true for fractional integrators as they've already got the skills needed to improve your business.
Furthermore, a Fractional Integrator will coach and mentor both the business owner themselves and several of the employees in the business. With that in mind, they'll be able to help your business right from the get-go and leave a positive impact on your employees.
· Fresh Perspective
When it comes to solving problems, many business owners can hit a wall when it comes to solutions. After all, you can only come up with many ideas to help your business grow. Not only can fractional executives offer a fresh perspective, but their opinion can be better informed than a business owner. After all, they've already been in your position, so they have a similar perspective.
Signs Your Company Needs a Fractional Executive
The realization your company needs a Fractional Executive may come after some frustrating stagnant months. Because no one company is the same, the need for a Fraction Integrator may show itself differently for each business. For example, if your company is missing to-do's, struggling to hit 80% on Rocks, or has an overwhelmed visionary doing both roles, then it's time to consider a Fractional Executive. Other signs include self-implementing in your EOS® journey, having people issues, including leadership, and being unsure how to have productive conversations to resolve those issues. If you feel like something is just not quite right in your company, and you can't quite put your finger on what it is, one of the first things you should consider is bringing on a Fractional Integrator to jump-start your business and get it back on track.
How Do You Hire a Fractional Executive For a Startup?
Now that you have crucial information like why a Fractional Executive is so important and how they can help build your business, the next steps are to get out there and hire. GCE is an experienced firm that is happy to help you find the right person for the role in the hiring process. If you’re looking to try out hiring on your own, keep in mind the importance of the vetting process. Search reputable sites like LinkedIn for experienced candidates and create a process you feel good about. Write down essential questions surrounding KPIs, managing and leading up and down, their processes for success, etc. Keep in mind that most successful Fractional Executives have more depth, knowledge, and experience than many of the Visionaries they are serving. This has to be a candidate you feel comfortable relying heavily on to help guide and grow your business.
Fractional executives can offer a fresh, informed, opinion on many of the issues that your business may face. Are you ready to take your business to the next level with a fraction integrator? Let’s Get Started.