What is a Fractional COO?
I've begun working with multiple businesses as a fractional COO. This is a new space and many seasoned executives are looking at it, trying to figure out how to make it work. But what is a fractional COO? There seem to be a lot of different answers. Here is my vision and definition.
Just like a full-time COO, a fractional COO (fCOO) acts as a strategic partner with the business owner. The job of the fCOO is to enhance existing leadership into a team that can run the day-to-day without the the business owner’s constant intervention. The fCOO drives execution of the owner's vision with the leadership team (and, by extension, the rest of the company).
The fCOO is the leader of the leadership team. This is not an outside consultant; the fCOO is part of the org structure and the leadership team reports to him or her, even in a fractional engagement. The fCOO ensures that all of the various functions and departments of the business are integrated with one another and that everyone is rowing in the same direction.
In contrast, the VP of Ops/General Manager is a member of the leadership team who reports to the fCOO. They are responsible for the actual product or service that the business provides to its customers.
One reason for confusion between the fCOO and the VP of Ops/GM roles is that in the majority of businesses where the COO is full-time, he or she also serves as the organization’s VP of Ops/GM. Eighty percent of the full-time COO role is managing the day-to-day business operations, and 20% of the role is strategic development of the owner's vision.
The fCOO focuses on the strategic 20%. That's why it's fractional (not full time). The fCOO may perform this service for multiple companies at the same time.
For most operations teams led by a VP of Ops/General Manager, the 20% strategic work often get consumed in the whirlwind of day-to-day business. Client issues always take priority, and the company makes slow or no progress toward the business owner’s strategic goals. (This is often true even when a company has a full time COO.)
Having a fCOO focused on the strategic 20% improves the likelihood that the business will make crucial changes and improvements to achieve the owner’s strategic vision. That’s not to say there aren’t trade-offs with a fCOO operations leader, but if everyone understands where the fCOO is focused - on strategic activities (without disrupting the day-to-day business) - the fCOO model can become highly effective.
