The sign was enough to get my attention. As a lifelong carnivore and red meat enthusiast, getting a great steak is the Mt. Everest of culinary success. Add to that my desire to always find something at a better price than “market”; the sign and overall deal seemed attractive. My wife Jackie and I could have Ribeye’s for 10 days straight at the normal price of one single night. Upon inquiry, I found that while there are the 20 steaks for $39.99, it is really the old Columbia House deal where we were able to get 11 records or CDs for 1 cent. The seller quickly tried to upsell a $400 deal with many more steaks and the 20 Ribeye’s thrown in for free, clearly signaling that the 20 Ribeye’s for $39.99 is not the real offer, but one to bring in the most customers.
This concept got me thinking about how this applies in business and the desire to hire strategic employees at a price that is right for the employer. Too often, company’s think about what is possible in their budget and price a new strategic position at a salary that will return an employee that has little or no experience in strategic positions, while their need is for a seasoned professional that has helped other companies make the strategic change they need to make.
The company realizes they have not made the “right hire”
Equally important, the company only thinks about hiring the position as a full-time employee, assuming that this is the only option for hiring a strategic resource that can help with their company’s long-term mission. After hiring the position at a salary that is optimal to the company, they may realize that while they have made the hire, they have not made the “right hire” and many times will need to begin the search again.
Enter the idea of “fractional executives”, a concept that has grown significantly in the past 5 years. These executives come into the company at a much lower cost than a full-time employee, due to the fact they are working on “strategic” initiatives and not day to day tactical initiatives. In most cases you can get a high-level executive that has already been successful at a competing or larger company in the same strategic role. These individuals have already been where the company is and can see the strategic landscape to help the company grow while maintaining margins.
If you are an executive or an owner at a growing company and have identified the need for a new strategic role, you may want to consider the differences between a full-time role or fractional role based on your business needs. Here are some key things to consider:
When looking at the role that you are hiring for, determine if you are looking for an executive that will be a “player-coach” or a true strategist that will help you look at the 1, 3, 5 year roadmap. The player-coach role may be more appealing if you are having current issues with staffing and getting work completed. However, if you are looking to define a longer-term strategy, hiring a fractional executive for 6 – 12 months will be able to come in and help visualize the future, without getting bogged down in the day-to-day operations. Additionally, because most fractional executives have previously held positions equal to the one you are looking to fill, they will be able to quickly understand the challenges at hand to add value more quickly.
Many companies are focused on large, hard to achieve goals. These may include getting to IPO, doubling company size in three to five years, or increasing overall customer base through acquisition. For these types of aggressive and complex business objectives, a seasoned executive (full time or fractional) will be the most appropriate choice. On the other hand, if the goals of the company are more subtle, hiring a new executive may be more appropriate to grow with the company. These goals would be more relatable to organic growth, increased lead generation, or improvements in company culture and employee retention.
Think about this topic like you would a plumber or electrician. If you have an emergent issue such as a pipe burst or power outage, you are going to want to get resolution to the problem immediately. However, if it is just adding a new pipe in a new area of your house, you may be willing to be more patient. For immediate results within the business, you will want to hire someone who has a track record of success that can show immediate change and improvement. However, if the expected results are longer-term, you may be able to focus on growing a full-time executive into the role over time.
There is always the option of NOT hiring the executive role. In these cases, the responsibilities still need to be accomplished, just by someone else. In many cases, the time that it takes to hire the role results in one of the other executives making time to accomplish the open responsibilities or not completing their own responsibilities to take them on. This may be a good time to evaluate bringing in a fractional executive to act as an “interim leader” that can help to drive the responsibilities forward while the other executives may focus on their responsibilities. Additionally, the fractional executive may be a good sounding board to help with the hiring process if a full-time role is still warranted.
The decision to hire a new executive is always one that needs to be taken very seriously and intentionally. Whether a company determines that a full-time role or a fractional role is right for their company, continual evaluation needs to be part of the process. Ultimately, depending on your needs and application of the role, either of these solutions may be appropriate.
For the true steak connoisseur, the 20 Ribeye’s for $39.99 would probably not be the best choice. However, if your goal is to make cheesesteak sandwiches, the deal may be an upgrade from other lower priced meat choices.
