Lessons to consider when creating a Fractional Executive partnership

               Fractional Executive Solutions has been in business for close to 2 ½ years now, and I have learned quite a bit about the world of fractional executives. Not only how to be a great fractional, but how to DEPLOY multiple fractional executives with different skillsets and focus. What I have found, is that working together in a “Pod”, or in a team, is that I can help a client solve multiple challenges as they grow. By providing talent such as HR, Finance or Supply Chain, I can help my client really change their business structure and performance while not breaking their budget. There are, however, risks in creating this team-based concept. If you are a fractional executive now on your own, here are few things to consider when you look to create a group like I did.

               FES is proud to be part of The Fractional Gurus, www.fractionalgurus.com, as a founding member. The group consists of Alchemy HR, Nitro Supply Chain Solutions and Accounovation. Links to their websites can be found on our website, www.fractionalexecutivesolutions.com. We started out as a networking group on a weekly basis to swap ideas and shared experiences as three of us were launching our new firms. The common thread was that two of the three members had worked for me in the past when I was a COO as well as working as a fractional solution for our company. I had a strong working relationship with them and knew what their strengths were as industry leaders. I had no doubt that they were good at what they did and that I could rely in them if I ever needed help. So, Lesson Number 1 -  Before you decide to create a formal group, really get to know them first so you establish a strong bond based on trust and reliability. Do not work with somebody until you have thoroughly vetted their abilities and performance.

               After 3 months of spending time on Zoom calls discussing how this concept could work, we decided to create a non-financial partnership that we would agree to work together when we could, and refer each other when it made sense. The Fractional Gurus is a concept only and is not a formal partnership that involves money or commitment. It is purely a marketing device to help us work together if it makes sense. We created a name, a concept how we could work together, and what markets that we, as individuals, would or want to work in. Lesson Number 2 – Avoid financial partnerships if you can. Keep it simple and mutually beneficial.

               As we started the process of exploring mutual opportunities, we understood that not every client would be the perfect client for each of us. What I learned was that I if I am going to refer one of our members to a client, I would absolutely own my partner’s performance, so I needed to be sure that the introduction that I made was going to be a perfect match. If I made the referral without doing my homework, I run the risk of an angry client and an angry partner. Having said that, I am happy to say that I have Accounovation with me at two of my clients and have had them help me with my other client. Alchemy HR works with us on one and I was happy to refer them, successfully, to work with another of my COO friends. I have referred Nitro to multiple clients as well as had them help me with one of mine. Lesson Number 3 – Do your homework when making that introduction. Your reputation depends on it.

               We have discussed three things to consider when forming and deploying your fractional team. Now here is the benefit – you can say, with confidence, “I have the perfect solution for that” when your client needs help in an area that you may not be able to do. By being part of The Fractional Gurus, I can and have used these resources to help my clients. Because of this, my clients' trust in FES grows and our relationship is stronger. Because as a Fractional COO, I am a “Trusted Advisor” to my clients and they rely on me to ensure that the company is in good hands. Lesson Number 4 – Develop that reputation as a complete solutions provider.

               Although we did not set out to create a working partnership, I am so happy that we did. Kimberly Tipps of Alchemy HR, Nauman Poonja of Accounovation and Brian Snodgrass of Nitro Supply Chain Solutions are MY trusted advisors and are also great folks to do business with. For that, I am thankful.

If you have questions on this or any other topic pertaining to the world of Fractional Executives, please reach out to me at dbaughman@fractionalexecutivesolutions.com .