Most Common Questions Asked to a Fractional Executive
What are the most common roles filled by Fractional Executives?
Most companies have the operational expertise that they need to provide the products and services for their customers. Fractional Executives can provide an outside perspective on operations and look for efficiencies and optimization that the current team may not be aware of. Since operations are typically not an area lacking expertise Fractional Executives often provide the most value in areas such as corporate planning, finance, marketing, people management, leadership, corporate oversight, executive support, etc. Often the Fractional Executive is brought in to help the owner or leadership work on the business rather than functionally within the day-to-day operations.
How do I know I am getting the right expertise if I am hiring outside my skill set?
Business owners often face this challenge, and a typical response is to avoid hiring for these types of positions. However, this is not in the best interest of the business. One option is to bring in someone from your network with expertise in that area to help with the interview. This way the person with the expertise can ensure that the technical abilities match what is required by the business and the business owner can still get a sense of other qualities such as personality and cultural fit. An alternative is to pose very specific interview questions. For example, asking someone to explain what they feel their role would be and how they would execute on filling that role can provide valuable insight. The interviewee should be able to provide specific details on how they plan to fill the role being discussed. If they provide fluffy indirect responses, they might not have the level of expertise needed.
How do I find a Fractional Executive with expertise in my industry?
It is a misconception that everyone within the business needs to know everything about the industry. In fact, there is a lot of value in bringing new perspectives to the company from other industries. A Fractional Executive can help the owner and leadership look at challenges and opportunities in a new light which will drive additional value for the team. Diversity in the team is highly important and a Fractional Executive can help bring diversity of thought and ideas to the team.
How much does a Fractional Executive cost?
While there are many different business models, Linked Management Solution believes working on an hourly basis is the best model for small and medium sized companies. Ensuring that these businesses are only paying for what they need and being good stewards of their resources is of highest importance. While there is some flexibility within the hourly rate based on volume of hours required, Fractional Executives are not a low-cost alternative. Since these individuals are highly skilled and bring valuable expertise, their hourly rate reflects this. Fractional Executives quickly provide impact and value to a business because of their skills and expertise. Getting the right expertise for your business when you need it ensures high efficiency and rate of return on your investment that is difficult achieving through other avenues.
Other things to consider when looking at the cost of hiring a fractional executive:
- How much time could be freed up for the owner or rest of the team to focus on what they are best at?
- How much does it cost not to bring on the expertise needed? Are there missed opportunities that the business may not even be aware of?
What is the difference between a coach or consultant and Fractional Executive?
A business coach or consultant help solve a specific problem by providing guidance or advice and then let the owner or leadership team execute. A Fractional Executive brings a broader range of skills to provide the guidance and advice but then sits within the business to help the team with the execution. A Fractional Executive has the same accountability as any other full-time member of the team. Additionally, a Fractional Executive can help mentor and grow the skills within the business leadership team since they are working along side the team.
How big should my company be before looking for Fractional Executive help?
Any business can benefit from a Fractional Executive. There is no magical number that a business must achieve before considering a Fractional Executive. Essentially anytime the business needs expertise which does not exist inhouse they could consider a Fractional Executive. No matter the size of the business a Fractional Executive’s role is to drive value and be a good steward of their clients resources.
What is the best way to get started onboarding and working together?
Before any money exchanges hands, it is important to understand the current state of the business, what is the business trying to achieve, and what challenges need addressing. This is completed through an initial assessment where a Fractional Executive sits down with the business owner or leadership team to review eight foundational areas of the business. This assessment ensures that everyone is on the same page and creates a priority list of challenges. Then based on the outcome the executive and the business can determine what skills are needed for the first priority and whether or not the executive has those skills or can help ensure the business gets the right skills. It is important to be highly efficient with the onboarding process and a Fractional Executive should be able to ensure they are getting the information from the business to begin driving value quickly.
