I fired myself from my Fractional COO role with a long-time client.

No, not really, I scaled back the size of the engagement and restructured it due to the growth of the company and the changing needs of the business. In conversations with my client, we realized we need to make a few changes due to the growth of the company and complexity of the business. I am still the Fractional COO, but we pivoted to add a full-time role that strengthens the technical part of the business and has me spending more time developing the team and their skill sets. I’m still the COO and responsible for financial and operational results, but my role and scope has changed. And that is a great thing!

So, I thought we should explore this topic; when and why do you have a fractional versus a full-time?

Choosing between a full-time COO and a fractional COO depends on several factors specific to your business situation. Here's a breakdown to help you decide:

Full-time COO:

Pros:

• Dedicated and immersed: Fully invested in your company, readily available for day-to-day operations and strategic planning. Available at all times versus one day per week.

• Deeper understanding: Can develop a more nuanced understanding of your business and its needs over time. They are in the details!

• Stronger team leadership: Provides consistent and direct leadership to your operational teams. Daily leadership, which is crucial as you grow.

• Scalability: Can grow alongside your company and its expanding needs.

Cons:

• Higher cost: Full salary, benefits, and potential stock options make this a significant investment.

• May be overkill: Might be excessive for smaller companies or those in early stages. The trick here is what size makes sense to switch?

• Less flexibility: Less adaptable to changing needs or project-based work.

Fractional COO:

Pros:

• Cost-effective: Lower overall cost compared to a full-time employee. If you have revenue of $3.0 million per year, can you afford a COO at $300,000 total comp?

• Scalability: Flexible engagement based on your current needs and budget.

• Specialized expertise: Access to diverse skillsets and experience based on specific projects. The right Fractional brings a wealth of knowledge and “been there, done that” history.

• Faster onboarding: No need for extensive recruitment and onboarding processes.

Cons:

• Limited availability: Not readily available for day-to-day issues or emergencies.

• Less involvement: May not develop as deep an understanding of your company culture and nuances.

• Coordination challenges: Requires clear communication and project management to ensure continuity.

• Potentially less stability: Reliant on external provider, which may offer less long-term security.

Here are some key factors to consider when making your decision:

• Company size and stage: Smaller companies or those in early stages might benefit from a fractional COO, while larger or established businesses might need a full-time presence. Really, can you afford the experience you need or can you afford NOT to afford it?

• Complexity of operations: If your operations are intricate or require constant oversight, a full-time COO might be necessary.

• Budget: Hiring a full-time COO requires significant financial commitment. Today and tomorrow. A Fractional can be let go easily and quickly.

• Specific needs: If you need expertise for a specific project or period, a fractional COO might be more suitable.

• Growth plans: If you anticipate rapid growth, a full-time COO might be a better long-term investment.

Ultimately, the best choice depends on your unique circumstances. Analyze your specific needs, resources, and future plans to determine the most suitable option for your business success.

Remember, you can always start with a fractional COO and transition to a full-time hire later as your needs evolve.