The Right Tool for the Job: Why Companies Should Consider both Fractional and Full-Time CxOs

Building a successful company requires strong leadership, and the right executive team can make all the difference.

As the former CEO and founder of a Silicon Valley tech startup, I know acquiring initial customers and establishing scalable operations can be challenging. For example, finding and hiring quality sales talent takes time, and having the wrong people can impact success. Did you know that nearly 70% of first-time VPs of sales don’t make it past year one? Determining if a head of sales is the right fit usually becomes apparent within 30-90 days.

For many companies, hiring a full-time executive can be a significant financial and operational burden. This is where fractional executives come in – they offer a flexible and cost-effective alternative to traditional executive hires. In this blog post, we will explore why companies should consider both fractional and full-time CxOs, and how finding the right tool for the job can help drive success.

The Benefits of Fractional Executives

Fractional executives are experienced professionals who work for multiple companies at once, typically on a part-time or project basis. They bring a wealth of expertise to the table, without the expense and commitment of a full-time hire. Some of the key benefits of hiring a fractional executive are:

1. Flexibility: Fractional executives can be hired for specific projects or periods of time, making them a great option for companies that need temporary or part-time support. This flexibility also means that companies can scale their executive team up or down as needed, without the financial and operational burden of a full-time hire.
2. Expertise: Fractional executives are typically highly experienced professionals with a proven track record of success. They bring a depth of knowledge and expertise to their role, which can be invaluable for companies that are looking to grow and scale.
3. Cost-Effective: Fractional executives offer a cost-effective alternative to full-time hires. Because they work for multiple companies at once, their fees are typically lower than what a full-time executive would cost, fully-loaded, on a monthly basis. This can be particularly beneficial for early-stage companies that may not have the budget to hire a full-time executive.
4. Reduced Risk: Fractional executives can help reduce the risk associated with hiring executives. Because they are typically hired for specific projects or periods of time, there is less risk involved than with a full-time hire. If a fractional executive isn’t a good fit, it’s easier to part ways without the expense and disruption of a full-time hire.

The Benefits of Full-Time Executives

While fractional executives offer many benefits, there are also advantages to hiring a full-time executive. Some of the key benefits of a full-time hire are:

1. Commitment: The full-time executive’s only professional commitment is to your company and its long-term success. They should be fully invested in the company’s mission, vision, and values, and can bring a sense of continuity and stability to the executive team.
2. Availability: Full-time executives are available to the company on a full-time basis, which can be particularly beneficial for companies that need consistent leadership and support. They are able to build strong relationships with employees, customers, and partners, and they can be more responsive to the needs of the company.
3. Accountability: Full-time executives are accountable for the success of the company. They are responsible for driving growth, profitability, and innovation, and they are held to high standards of performance and results.
4. Leadership: Full-time executives bring a strong leadership presence to the company. They are able to set the tone, culture and direction for the organization, and they can inspire and motivate employees to achieve their goals.

Finding the Right Tool for the Job

So, which is better – fractional or full-time executives? The answer is that it depends on the needs of the company at the time. Both fractional and full-time executives offer unique benefits, and finding the right tool for the job is key to driving success.

Here are some tips for finding the right executive for your company:

1. Identify your needs: Before you begin the hiring process, it’s important to identify your company’s specific needs. Do you need a temporary or part-time executive? Or do you need someone who can commit to the company on a full-time basis.
2. Evaluate the benefits of each option: Both fractional and full-time executives offer unique benefits, so evaluate the pros and cons of each option to determine which will best suit your company’s needs over the next 12-18 months within the functional area you are considering.
3. Consider the level of expertise required: Depending on the role and the industry, a certain level of expertise may be required. Assess whether a fractional executive is more likely to have the necessary experience and skills than the fulltime employee you may be able to afford.
4. Evaluate the cost-benefit: Hiring a full-time executive is a significant financial and operational commitment, while fractional executives offer a more flexible and cost-effective option. Evaluate the cost-benefit of each option to determine which will provide the best return on investment.
5. Seek professional guidance: If you are unsure which option is best for your company, I would love to help.

As a former CEO and COO, I know how challenging this is to navigate and how costly the wrong choice can be. Reach out, let’s talk!