Growing businesses experiencing success in their own markets may turn an eye towards markets overseas. This has been the case through millenia and global expansion continues as “business as usual”. The economic conditions that encourage global expansion may ebb and flow, but the need to grow is still the motivating force behind eyeing off-shore markets.
This was the case for a UK Tech company that landed a massive US client and undertook the treacherous and rewarding journey to come to America.
Background – The UK company was asked to provide the tech for a major US retailer with aggressive plans to build facilities in the US. All was getting underway and the project blueprint, the locations, the markets, the US HQ, staffing, benefits, permits, etc. had all been worked out. The problem? After six months, the US Head of HR had a change of heart and had taken a position with another start up company and now the home office needed to replace the VP.
The Emergence of Fractional C-Suite Executives
Hunting for highly qualified and competent C-level executive (CXO) candidates poses significant financial challenges for emerging companies. Rather than fill the VP position from HQ – not cost effective, or through promotion (not ready) the company looked for a “temporary” CHrO.
Businesses can optimize their budget and financial resources by hiring freelancers instead of maintaining an in-house workforce, resulting in annual cost savings ranging from 20% to 30%.
Fractional C-suite executives, called fractional, interim, or part-time executives, are reshaping how businesses access high-level leadership and expertise. These professionals provide strategic guidance to companies part-time or contract, expertly filling senior executive roles. What sets them apart is their unique ability to offer these essential services for a fraction of the time and cost typically associated with full-time executive hires.
By hiring a Fractional CHrO, the company accomplished several key objectives:
- Support the organization with seasoned HR expertise that would continue the arc established for the US market and would:
- bridge the leadership gap
- deliver critical expertise and guidance for the emerging business
- “buy time” to hire the permanent HR leader
- substantially reduce the financial burden of a full-time executive
Fractional Executive Value Propositions
Fractional C-level executives bring a wealth of expertise and a fresh perspective to their businesses. They offer the leadership and strategic thinking typically associated with full-time executives but with greater flexibility and cost-effectiveness. Their extensive experience allows them to tackle complex challenges, offering valuable insights and solutions confidently.
In the case of the UK company, there were some of the compelling advantages of hiring a fractional executive:
- Cost-Effectiveness – A Fractional executive presented an enticing and viable alternative, seamlessly delivering the same high-caliber expertise and leadership while alleviating the financial strain.
- Experience and Expertise – as a seasoned veteran in their field, the FlexExec quickly assessed the organization’s needs, developed comprehensive strategic plans, and executed them efficiently. The home office enjoyed the benefit of local expertise to navigate the unknown waters of US regulation , employment law, tax considerations and compliance issues.
- Mentorship and Skill Development – The interim exec was able to assess the strength of the team and recommend additions and people that were willing to step up but needed developmental support to take the next step. This mentorship was pivotal in developing the existing workforce’s skills and leadership capabilities.
This knowledge transfer from the part-time executives may be invaluable for the company’s long-term growth and success, fostering a culture of continuous improvement and professional development.
How it works
Fractional C-suite executives function as contracted professionals, the CHrO adapted to the level of involvement based on the growing company’s evolving needs. The FlexExec was able to adjust strategies as the workforce grew allowing for economies of scale, competitive benefit strategies that facilitated hiring at pace in a competitive job market
Identifying the Right Fractional Executive
Choosing the perfect executive for the organization was a pivotal and nuanced decision that warrants meticulous attention to the company’s distinctive requirements, ethos, and strategic aspirations. Making a well-informed choice when it comes to selecting a fractional executive can have a significant impact on the success and growth of your organization. Perhaps just as importantly the Home Office enjoyed the ability to take the proper amount of time to find the permanent member of the team, while recognizing the finished product (a fully functional US workforce with multiple locations) would be operating as Business As Usual and the final pick for the leadership position could be entrusted to the junior associate currently being developed for the position.
To ensure a successful partnership, follow these guidelines:
- Define Your Needs – understand what you want to achieve for directional purposes. Know what you know and what you don’t know about the market in which you’re expanding.
- Check for Experience and Expertise – scrutinize the Fractional Exec’s track record to ensure that it aligns with the areas where you require assistance. Consider their prior roles, projects, and industries they’ve worked in. Look for similar experiences that the FlexExec has navigated for other companies.
- Evaluate Cultural Fit – assess qualifications, interpersonal skills, and adaptability to your organization’s values and ethos. The UK is not the US and there are cultural differences that need to be recognized and valued.
- Look for Flexibility – check for the ability to adapt to changing circumstances, take on new challenges, and remain aligned with your shifting strategic direction. An agreement with flexible duration can be very important if the project timelines need to be expanded or contracted.
- Seek Recommendations and References – speak with others who have collaborated with candidates to gain insights into their work ethics, communication styles, and ability to deliver results. A Fractional Exec will be able to provide references, testimonials and recommendations.
- Transparent Communication – establish a framework for ongoing communication to maintain alignment and promptly address concerns. The Fractional Exec is a member of the team and needs the same access to all levels of communication that the permanent placement requires ● Test the Waters – start with a short-term project or probationary period to evaluate the compatibility. The original term of the engagement entered into by the UK company was six-months. Six months turned into two years as the Home Office continued its search without a desperate need to find the final candidate.
This selection process involves assessing the candidate’s skills and qualifications and gauging their compatibility with your company’s culture and long-term vision.
Fractional C-Suite Executives for Navigating Uncharted Waters
Fractional executives represent a dynamic, cost-effective solution for businesses seeking top-tier leadership and expertise. Our UK tech company had a successful journey and has established their new business with the help of their FlexExec. The adaptability, wealth of experience, and ability to drive strategy while simultaneously “keeping the boat afloat” and nurturing the team’s growth and development made the interim CHrO a valuable asset from startup to operational functionality.
Final Thoughts on Fractional C-Suites
Ultimately, the right executive is an adept professional and a true strategic partner who can seamlessly integrate into your organization and drive it toward success, making this choice a defining factor in your company’s growth and prosperity. Companies like the Infinite CXO supply fractional C-suite executives to sufficiently accommodate your company’s growing needs.