Over the past few years, we saw an increase in demand for specializations in a particular niche, specifically in marketing. While there are many advantages to specializing in a niche practice, it can also limit a professional’s ability to see the bigger picture, how that function integrates with others.
In a traditional organization, the C-Suite (CEO, COO, CFO, CIO, etc.) are executive level functions that typically rely more on their years of experience to drive larger organizational initiatives rather than day-to-day functions of that department (HBR). This role leads a team to execute a larger initiative or strategy that will fulfill the business vision from that respective function. A fractional executive (i.e. CxO, etc.) does exactly that, but works almost like a consultant who will offer her/his services to a firm for a portion of time and for a fraction of the price. This is a particularly lucrative opportunity for small businesses to access executive leadership experience and seniority for a designated time and small price.
Here are a few executive roles that are so critical for the success of small businesses:
*Chief Marketing Officer (CMO) serves as the most senior leader in the marketing department responsible for setting the marketing strategy and brand position for the company.
*Chief Operational Officer (COO) usually sets the day-to-day operational functions of a business and is second chain of command to the CEO. This is particularly important role for small businesses to become or maintain profitability.
*Chief Revenue Officer (CRO) will direct all processes that directly bring in additional revenue, from sales operations, sales strategy, customer experience, pricing and revenue operations. Sometimes this role will have involvement with marketing as well. This function is very critical for small businesses.
*Chief Experience Officer (CXO) probably slightly more important for businesses on the brink of scaling, this function is critical to design the experience that customers have with your brand. This function may even work closely on the Employee Experience (EX) as well (HBR, 2019).
There are many other C-Suite, executive leadership roles, including but not limited to Chief Executive Officer (CEO), who is usually the highest seniority within a company, Chief Financial Officer (CFO) responsible for all of the finances of the company, Chief Technology Officer (CTO) who sets the pace for all technologies used within the organization.
D&Co offers all of the above (*) services on a fractional basis (learn more) which are critical for the success and growth for small business owners. Depending on the industry and size of the firm, the average global salary is an average of $278,000 USD (Blue Steps) — plus equity in the firm and lucrative incentives or benefits. The price of a fractional executive ranges from $6,000 USD - $10,000 USD per month (LinkedIn), but can vary depending on the scope of the current tasks at hand and duration of the project.
Is it a good time to hire a fractional executive? If you’re looking to grow your business, if you have a gap in senior experience on your leadership team or if you have limited funds to supplement a standard executive-level salary — it may be a good time to consider!