What Does a Fractional COO Do?

Nonprofits, small businesses, and other similar organizations (of virtually any size and across countless industries) rely on their top executive leaders for a number of critical business functions. These can include not just the CEO, but also a CIO (chief information officer), COO (chief operating officer), or others. 

For smaller organizations, the idea of recruiting, onboarding, and compensating a new executive can feel overwhelming from not just a logistical standpoint but a financial one as well. Yet, the benefits remain undeniable. That’s why many small businesses and nonprofits choose an alternative route by considering fractional executive services. 

Among these roles is that of the COO. In this blog, we’re going to take a closer look at the transformational and cost-effective value fractional COO services can bring to an organization.

What Is a COO, and What Does a COO Do?

From HR and staffing to managing the organization’s budget and overseeing other administrative functions, a COO truly wears many different hats. 

As mentioned above, the term “COO” refers to a chief operating officer. If you haven’t heard the term before, you might assume it’s similar to a chief executive officer, or CEO. And while you’re certainly on the right track, there is a distinct difference between the two roles. 

In a typical organization’s hierarchy, the CEO is the top-ranking executive, largely responsible for making the most important decisions about the organization’s direction, initiatives, and priorities. The COO, then, serves a second-in-command role, providing the essential leadership needed to make the CEO’s objectives into practical realities.

Whether serving a company or a non-profit organization, some of the most important responsibilities of a COO include:

• Overseeing HR and staffing functions.
• Keeping the organization focused on its defined goals and objectives.
• Maintaining the organization’s budget.
• Managing administrative functions.
• Supporting the CEO as second-in-command and potential successor.

It’s important to note that the list above is far from exhaustive. In reality, defining the exact roles and responsibilities of a COO requires a certain amount of insight into the organization and its unique goals. For example, if the organization is considering an aggressive growth strategy, the ideal COO candidate would be one with demonstrated experience in helping similar organizations effectively grow.

What Are Fractional Executive Services?

Providing an especially valuable, practical solution for tightly-budgeted organizations, fractional executive services are exactly what they sound like. An organization can hire one or more fractional executives to round out their leadership team and benefit from the increased brainpower and resources they bring to the table—without putting undue strain on their budget. 

To put it simply, or another way, they’re called fractional executives because they essentially work a fraction of the time a full-time executive would in the same position. This, of course, also means the organization sees financial relief in the form of lesser compensation. For many organizations, fractional executives are brought on board to work more like a short-term consultant than a long-term, salaried employee.  

What Are the Benefits or Advantages of Fractional Executive Services?

The most compelling benefit to fractional executive services is the ability to gain expert insights without having to commit to a long-term, high-salaried employee. That’s not to say a fractional COO or other executive can’t transition to a full-time role when it makes sense—in fact, this happens fairly often. If a fractional COO is able to demonstrate their value in working with your organization, then if (and when) you do decide to pursue a full-time COO, you’ve already got one very highly-qualified candidate to consider!

Additional benefits primarily center around the flexibility a fractional executive provides. The exact COO roles and responsibilities can adapt as organizational needs or priorities change, for example. If the organization is looking to develop fresh strategies, pursue growth or expansion, or undergo some type of major shift in how they operate, a fractional COO might be the exact right person for the job. 

How Much Does a Fractional COO Cost?

As you might expect, the cost to hire a fractional executive is much less than the cost of recruiting and onboarding a full-time executive. Even if their cost might seem high in some cases, the fact that fractional executives are often considered temporary or interim positions means a much lower total (ongoing) compensation is required. Additionally, fractional executive compensation does not typically include the same employee benefits package that full-time employees and executives receive. 

Finally, while it’s difficult to pin down a specific range of expected cost, their average compensation ranges between $6,000 and $10,000 per month. When you compare this figure with the average full-time chief operating officer salary, the cost savings are rather impossible to deny. In the United States:

• Chief operating officers make an average of $464,033 per year (or $38,669 per month).
• Chief operating officers working for nonprofit organizations make an average of $137,929 per year (or $11,494 per month).

CIM: Fractional Executive Services (and Much More)

At Computers in Ministry (CIM), we are passionate about helping nonprofit organizations to succeed at each phase of their operations. We know there can sometimes be a chasm between the mission an organization is passionate about and their actual ability to make a real impact. Too often, it’s because a lack of technology or tactical leadership serves as a sort of barrier. 

Our number one mission is to reduce those barriers. We’re here to empower you with the technology and know-how to modernize or scale operations, fractional executive services to develop and implement effective change, and so much more. 
Visit our website to review our full range of services, or contact us to learn more about how we can help you develop an IT roadmap, implement stable and effective solutions, and, ultimately, fulfill your mission.