What is a Fractional COO?
Working as both a COO and Fractional COO over the last several years, I’ve witnessed the “puzzled looks” of many fellow CEOs and business owners alike when I mention the phrase “Fractional COO.” Maybe you have heard about the concept of a Fractional COO from your peers.
What exactly do we mean by the phrase “Fractional COO?” Certainly, our professional contemporaries, Fractional CFOs, have “owned the space” around business and financial communities for decades now. In fact, their success has paved the way by setting the table for pioneering, entrepreneurial COOs with operational & strategic experience.
Sir Winston Churchill is duly noted and often credited as making the following observation: “It is easier to be a nation’s leader than its number 2.” Obviously, the sentiment behind this quote is that the person at the top of the leadership structure has the ultimate authority to take decisive action, while the second-in-command often bears significant responsibility without the full power to act independently.
Firstly, as this article What Should a Fractional COO Look Like? from Forbes points out, and as summarized herein, the Chief Operating Officer (COO) is the “MVP of any business.” Further, “a good COO has a wide range of operational, financial, project and strategic experience.” Sometimes, they have even owned businesses of their own (and maybe sold one or two!). When properly organized, (Fractional) COOs work in the business, allowing CEOs to work on the business.
Secondly, the financial investment required for a full-time experienced COO is often a limiting factor for many businesses. However, in exchange for part-time employment, businesses can now bring in topflight talent to quantum-leap your company to the next level very quickly.
What Companies Hire a Fractional COO
- At least twenty (20) years of previous work experience (if not more) and preferably, role specific.
- Ideally, a seasoned Fractional COO has owned a business, been a CEO, or both. This helps them see issues or concerns through the unique lens of a CEO.
- They are entrepreneurial in spirit.
- Worked in a variety of professional settings, from startups, to turnarounds, to closely held family-owned businesses, to non-profits and established companies. In fact, the more diverse experiences and challenges— the better.
Benefits of a Fractional COO
A Fractional COO is a Strategic Thinker
- Thirdly, can your Fractional COO synthesize a strategy and more importantly execute against it? As the Forbes article points out, most folks that I have encountered professionally are good at one thing or the other (and rarely both). That said, the full-time or Fractional COO understands the planning process, frame it taking the long view and turn strategies into a set of executable actions. When best done, strategic plans are in perfect alignment with executable activities.
- Fourthly, what gets measured gets done. A Fractional COO who routinely embraces in optimal allocation of resources, drives growth and profitability.
- Effective and efficient change management is imperative
Deep, Experienced Business Acumen
As my dearly departed Father said to me, “You know what your responsibilities are. Know how the business operates and know how to make money.”
Intuitively, Dad knew that most effective COOs were immersed continuously in finance, sales, marketing, operations, HR, technology, culture and industry environment. Certainly, the most successful COOs are the most seasoned (they live it and breathe it) & the occupation is certainly NOT for the faint of heart!
Said slightly differently, they take a holistic (rather than tactical) view of the business.
A properly groomed COO recognizes that overall business acumen is of paramount importance as they are tasked with improving operations, efficiency and profitability all at the same time.
Exceptional Leadership
Fractional COOs absolutely need a seat at the table of the Executive Management Team. This act alone inspires trust, a confident work culture and tremendous motivator. It is equally important to manage all the stakeholders in the enterprise—employees, other executives, partners, suppliers, clients and customers.
Fractional COOs are Extraordinary Problem Solvers
They identify challenges, quickly determine root causes, formulate effective solutions and get them in place quickly, Further, they get supporting analytics in place to measure against the standard that they set. This isn’t a “lone wolf approach” but rather optimally done collaboratively with fellow members of the team to achieve the most effective and efficient outcomes.
Perhaps a Fractional COO Should Be On Your Radar
The role of a Fractional COO holds the promise of providing immense value to businesses today. High-caliber leadership without the full-time expense. As Forbes points out, “a fractional COO may be the secret ingredient to success.”
