What are fractional leaders?
A fractional leader, also known as a fractional executive, is a professional who provides part-time, temporary, or project-based leadership and expertise to a company. Fractional leaders typically have extensive Knowledge and experience in their respective fields and offer their services to organisations that may not need a full-time executive, but still require strategic guidance and specialised knowledge.
How can they help?
These leaders can hold high-level positions such as Chief Revenue Officer (CRO), Chief Financial Officer (CFO), Chief Technology Officer (CTO), Chief Marketing Officer (CMO), and other C-suite roles. They work with companies for a fraction of the time and cost that a full-time executive would require. Fractional leaders are often brought in to address specific challenges, drive growth initiatives, or provide strategic direction, making their expertise accessible to businesses that may not be able to afford or require a full-time executive presence. Particularly valuable for start-up's before securing Series-A funding, they contribute significantly to the growth of the business.
Chief Revenue Officer (CRO) example.
In the context of early-stage growth and specifically the sales aspect, a fractional Chief Revenue Officer (CRO) can make a substantial impact. The value of Fractional CRO’s for Start-up’s and what to avoid becomes clearer when you consider the following.
Strategic Sales Direction: A fractional CRO brings a wealth of experience and can chart the course for the company's sales strategy. They have done it before and can stitch the plan, processes, and execution together. This ensures that the start-up's initial steps are in line with its overarching business objectives, which is especially vital for start-up's still finding their footing in the market.
Sales Tactics and Execution: With their wealth of experience, a fractional CRO can steer the sales team towards employing the most effective tactics. This includes refining the sales process, enhancing lead generation, and converting leads into paying customers.
Team Building and Training: Fractional CROs can contribute significantly to building a competent sales team by utilising their knowledge in recruiting and training. This prevents the awkward situation of promoting individuals into positions they might not be equipped to handle, particularly crucial on the sales front.
Flexibility and Expertise: Start-up's often experience rapid changes and fluctuations in their sales efforts. Fractional CROs offer the agility to tap into their expertise when needed, allowing start-up's to benefit from high-level sales knowledge without the financial commitment of a full-time executive.
Revenue Management: An adept fractional CRO can offer insights and guidance for managing revenue streams effectively. Their expertise aids start-up's in optimising resource allocation, getting the right people, in the right seats, doing the right things and aiding in informed decision-making during the pivotal early stages.
Network and Partnerships: These experienced leaders often bring along a vast network of industry contacts and affiliations. This network can prove to be an invaluable asset for forming partnerships, collaborations, and accessing resources that are typically challenging for start-up's to secure.
Avoid the pitfalls of giving C(?)O titles to the wrong people.
Designating someone like a Sales Manager with a couple of years of experience as a Chief Revenue Officer (CRO) too soon can lead to complications. As the company progresses, it becomes apparent that the individual lacks the necessary skills to guide the sales team towards achieving significant milestones, such as reaching £10 million in Annual Recurring Revenue (ARR). Consequently, a reorganisation becomes inevitable, accompanied by the challenge of addressing emotional concerns stemming from perceived demotions. Consider adopting fractional leadership as an alternative strategy during the early stages, instead of prematurely assigning unsuitable individuals with high-ranking titles.
Nurture your talent!
A more prudent approach involves maintaining flexibility in your organisational structure. If a Sales Manager exhibits the potential to evolve into a Chief Revenue Officer (CRO) in the future, it's wise for both parties to acknowledge this potential trajectory. However, using impressive titles as a means to attract talent should be approached with caution. While it might resolve immediate recruitment needs, this strategy can potentially result in severe complications down the line, akin to solving a short-term problem while inadvertently setting the stage for long-term difficulties.
Help grow the talent, experienced C?O’s can help mentor, coach and work alongside talent and help them grow into the role. There is the added benefit for Start-ups of fractional leaders being your ‘safe pair of hands ’keeping a bird’s eye view on the important things and being a founder’s safeguard i.e. do I agree with what is being said and what your being told?
By leveraging these skills and insights start-up's can avoid the pitfalls of placing inadequately qualified individuals in critical sales roles. This, in turn, can spare them from future setbacks and challenges. Fractional CROs present an economical method to access specialised expertise, mentorship, and strategic direction in the realm of sales, thus contributing significantly to the growth and overall success of the business.
Director @ Candoo.co.uk | Helping people build great teams