Fractional Executives Can Take Your Business To Next Level Growth

The Need and Cost of Executive Talent

From the day a successful business begins, it is on a growth trajectory which will require executive talent to achieve its long-term goals. At some stage of maturity, companies hit a ceiling where growth ceases or slows without the right executive talent in place. But full-time executives such as Chief Financial Officers, Chief Operations Officers and Chief Executive Officers come with hefty price tags, making them unaffordable to most young companies. And young companies don’t need 100% of what a CFO, COO or CEO would do. Then there’s the high cost of hiring the wrong executive. Some estimates are that 50% of newly hired full-time executives fail within 18 months, adding huge costs to turnover and another executive search.

The Fractional Executive Solution

In recent years, the emergence of the fractional, or part-time, executive services industry has offered young companies a smart and affordable solution to push through ceilings and grow to that next growth level for a fraction of what it costs to hire a full-time executive. Good fractional executives can take companies through accelerated growth and fast track their ability to achieve corporate goals. Fractional executives cost much less than the salary, bonus, benefits, and taxes associated with a full-time hire. As contractors, they can ramp up in weeks, not months, as a major executive hire would require. Fractional executives allow young companies to test their talent needs in specific areas prior to making a financial commitment to a full-time role. Finally, the needs of growing companies can rapidly change, and current executive needs may be much different 12 to 18 months from now, making an interim solution ideal.

But What Fractional Executive(s) Do You Need?

Most young companies are unsure of their executive needs. Do they need a Chief Financial Officer for financial planning and to build a robust finance and accounting system? Do they need a Chief Operations Officer to streamline operations, increase productivity, and fuel external growth? Perhaps their Chief Executive Officer seeks advice for corporate vision, strategic planning, and goal setting? Fractional CFO, COO and CEO services are generally offered separately, leaving a young company to determine what executive role or roles they need most.

Whereas fractional executive services are meeting a huge need for growing companies, the confusion regarding executive roles needed can pose significant problems for these companies seeking next-level growth. All three executive roles are vital for a great business to achieve its desired success. We call them the Three Pillars of Success.

Why You Need All Three Executives

The Three Pillars Of Success

All great businesses are firmly founded upon a clear vision and strategy, a solid financial plan, and an efficient operation. Remove any one of the three pillars and the structure begins to crumble.

I. CEO Strategic Vision. Great businesses begin with great visions, strong core values and a corporate culture that supports both. They have great business strategies, optimal organizational structures, clear and measurable long and short-term goals. They know their market and are positioned for maximum competitive advantage. They have leaders who inspire, and who make the most of all available resources. Strategic vision and planning is the first pillar of any great business.

II. CFO Financial Strength. Great businesses know their numbers. They manage and optimize cash flow and prepare meticulous budgets and financial forecasts. They develop financial plans that are integrated with strategic plans. They install efficient accounting systems. They track and measure their financial performance, making improvements as quickly as possible. They optimize their capital structure. Financial strength is the second pillar of any great business.

III. COO Operations Efficiency. Great businesses understand that efficient internal operations fuel external business growth. They design operational systems for optimal efficiency, while tracking performance using key metrics. They develop radical customer service and retention programs. They recruit and develop world-class personnel. They cultivate superior partner and vendor relationships. They drive extensive and sustainable growth. Operations strength is the third pillar of any great business

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The need for all three pillars makes it challenging for a young company to determine which pillar it should install first, second or third. How does a young company install or solidify all three executive pillars for its next level growth?

Installing Or Solidifying Your Three Executive Pillars

Lovett C-Suite Consulting follows a top-down and holistic approach in which it evaluates the needs of your business across all three pillars of success - strategic vision, financial strength, and operations efficiency. Rather than an exclusive focus in any one executive area, LCC analyzes all three and identifies your possible needs across the CFO, COO and CEO disciplines.

I. Our Executive Services Provide All Three Pillars

Our comprehensive approach begins with a review of your entire business organization in order to understand your strengths, weaknesses and those areas constraining growth. Rather than focus on your needs in a single specialized executive role, we comprehensively examine your needs across the CFO, COO and CEO roles. We then identify the specific executive deliverables in each of the three disciplines which would create the greatest growth for your business. Finally, we provide a Scope Of Engagement which outlines proposed services in the CFO, COO and CEO executive roles in order to install or solidify the critical three pillars of success.

II. Our Executive Services Are Laser Focused

Because LCC integrates services across all three executive functions, there is no overlap or omitted services among the three, making our executive services streamlined, integrated, and efficient. Additionally, LCC identifies your most important needs within each executive role, then laser focuses its services to address those high priority areas. For example, your business may require 30% of services which fall under the CFO function, 50% of services which fall under the COO function, and 15% of services which fall under the CEO function. LCC pinpoints the essential services across executive disciplines and delivers what you most need from a CFO, COO and CEO to accelerate your growth.

III. Our Executive Services Provide Tremendous Cost Savings

1. Beginning with part-time executive services, LLC offers huge savings compared to employing full-time executives.

2. Because fractional CFO, COO and CEO services are bundled into one comprehensive service, we offer significant savings versus paying for these services separately.

3. LCC’s executive service integration ensures no overlap or omission among our CFO, COO and CEO services, which provides further cost savings. LCC laser focuses on the deliverables most needed by your company within each executive role, while balancing all three.
   

IV. You Control Our Flexible Engagement Fees

Though we begin with an estimated monthly fee for our comprehensive executive services, those estimates can be scaled up or down to meet your future needs. One month you might require 10 hours of fractional services, but the next month you might require 30 hours. You might require project based executive services for 3, 6, or 12 months, or until you hire one or more full-time executives. You control your monthly costs, engagement duration and the total amount you invest in your fractional C-Suite services.

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The author, Dean C. Lovett, is a CPA, Wharton MBA, and the founding principal of Lovett C-Suite Consulting. A lifetime entrepreneur, Mr. Lovett has created, operated, and sold successful businesses in wireless communications, corporate franchising, and real estate development. He can be reached at Lovettcsuiteconsulting.com.