The good news is that we could time when the bus was arriving. It would drive right past our front door, circle round to get the kids up the street then head on back down for our stop.
For my mom, it was a five minute period of frantically hustling 3 kids out the door.
But for me, it was only five minutes I had to brave the Alaskan winter in bare legs and my very fashionable pair of shorts I was wearing to school.
Yes, dressing in layers is advice dispensed in Alaska as much as it is anywhere else with a cold climate but my middle school pride was a force to be reckoned with.
That pride's probably still buried in there somewhere but now, as a grown adult who's still wearing her slippers in May (or May-cember as my neighbor just called it), I think of lots of things in layers... not just my outfits.
And what a fractional COO actually does is one of them.
For some, the concept of a Fractional COO is brand new. And for others, the concept may feel a little messy. And frankly, it is a bit messy.
So before we get into the "job" and the application of that job, let's define operations. Because that's where I see a lot of the confusion coming from.
Defining Operations: What Professional Services Gets Wrong
Operations is the many tentacled thing that pulls your organization together - from promises made in the marketing and sales process, to the delivery of services and the experience your clients receive, to a support structure ranging from basic admin to technological infrastructure up to top line strategic planning.
It's the cohesive, top-to-bottom, front-to-back outfit, not an individual piece.
It is "simpler" in professional services. There's no manufacturing line, no equipment, no real estate required.
But while in startup and small mode, time is at a premium. And operations for a professional services may look and feel like it's all about the admin work. You're happy to work on your business enough just to get invoices out the door. You might add assistants, office managers or even a Director of Operations so you get more focus on the actual client work. But their role is still very much day-to-day coordination and taking that recurrent admin work off your plate (like getting those invoices paid).
Except that shouldn't be confused as Business Operations. Day-to-day coordination is a piece, but not the puzzle.
Let's take it up a level (or several levels) to bring in some perspective.
What a COO Actually Does
In a much larger business, the responsibility of the COO (my words here) is to ensure the business is executing in a coordinated manner to achieve its biggest and highest priorities.
(As I list this out, it might sound foreign to the size of your business. Bear with me a minute.)
COOs work hand in hand with the CEO.
They have a direct role with the board of directors, though far less with public investors than the CEO or CFO would.
COOs help with setting the strategy and the KPIs (metrics), making sure the plans suit the vision but giving those plans the reality check of what's achievable and over what timeframe.
COO's also work to implement and measure implementation against those KPIs.
They coordinate efforts across different departments - both the business departments (like marketing, sales, client relations, finance, legal, support teams) as well as product departments (different offers or service lines e.g. business law vs family law vs estate planning).
They have teams of people who work in roles from Directors down to Admin, including Project Managers and Change Management.
Sometimes Product, Client Relationships, and Corporate Strategy sit underneath them. Sometimes they don't.
IT is usually separate in today's world. So is HR and the CFO function.
But they all (should) work together and find the common ground to move the company forward together.
The COO is the ultimate Integrator.
And because of this wide-ranging responsibility, COOs might get a base salary of a half million or more plus bonuses and stock options that take easily them up to or over the 7 figure mark.
Plus they'll have other people working for them. To name just a few layers...
- Corporate Strategy & Strategic Planning
- Middle Manager Division Heads
- Head of Client Experience or Head of Client Relationships
- Project Managers
- Chief Administrator Officers
- Office Management
So what does a Fractional COO mean in your business?
Fractional COOs: The Practical & The Profit Impact
Let's bring this back to a practical perspective now that's we've laid some foundations.
Since I didn't define it before, "fractional" is just a fancy buzzword for part-time.
And COO is often a term used interchangeably with the small business Integrator role.
But more important, when you are hiring a Fractional COO, you are getting some part-time combination of all of the above roles we defined in that large company setting.
That's valuable to your business in a couple of ways.
First, you don't have to shell out a 7 figure price tag plus hire all the support staff to get that experience in the door.
And second, that experience (and the execution capabilities your Fractional COO and team brings with them) can make a big difference in your results.
As you grow, the perspective you take, the plans you set, and the focused action on that plan matters far more than just doing the client work well and managing cash flow. That is what your Fractional COO can help roll up their sleeves and help you do.
Here's a few examples to get your creativity flowing...
With one of my clients, while we made a move to a new operational platform, I uncovered over 40 unique fee schedules on roughly 60 clients. Getting internal and external buy-in, we developed a set of standard schedules then decided on and communicated with clients to bring their fees into alignment.
That one move increased profitability, added operational efficiency, and has made future engagements faster to negotiate and get under contract. (The new ops platform was also a success.)
And with another, we've documented processes across their client lifecycle but have also established "standing meetings" to keep on top of potential lag times. Access to information is one thing but, by also streamlining processes and setting in place an accountability structure tied to KPIs, we've added manager transparency into employee performance, improved the client experience, and again, improved firm profitability.
Or taking it back up to a strategic level, consider another firm where legacy tools (and a plethora of Google Sheets) were muddying the waters on their project-level profitability. You need margin to scale and sometimes a narrowing of focus to really take off like a shot.
So by seeing what services, which partners, and what channels are driving the most profit, at a glance and on demand, we've supercharged that owner's ability to make better decisions around what moves make the most sense for their next move.
But now how do we get you to the right Fractional COO? And how do you know which one is right for you?
Cutting Through The Layers: Choosing A Fractional COO
It gets messy when some Fractional COOs like to focus on just the Product or Go To Market (GTM) work. Or maybe they love competitor analysis.
Some Fractional COOs are just Project Managers or Process Mappers. And some are Advisors who don't execute for you but give you SOP templates to fill in yourself.
But others will help you solve what needs to be done right now but also set you up for success for the long term.
Some other quick advice... get a Fractional COO who focuses in your field. I live, breathe, love the professional level people-based businesses. If, though, you're in M&D or CPG for example, I can refer you to some great colleagues but I am not your match.
And don't mistake your Fractional COO for office management or virtual assistant services. You need to have that day-to-day support and that's higher priority (comes earlier in the timeline) than the Fractional help. Invest in that first before you get the Fractional exec.
What you need, and what you ask for, will dictate which of those COO to admin layers you'll tap into when you engage a Fractional COO.
And like any hire, you should feel like they are a good cultural and experience fit for your business. You can likely fill them in on process details (most of us love understanding how you do things and why!) but you can't change someone's values or communication style.
At the end of the day, a Fractional COO is someone who helps you move your business to the level, keeping you in your genius zone while they operate in theirs.
If you're a professional services firm between $2M and $20M and you're wondering whether this is the gap you've been trying to fill, let's talk.
