The Success of the Perfect Match

I found an insightful piece on SaaStr.com penned by Jason Lemkin. The article revolved around Fractional CMOs and CROs and their effectiveness, as encapsulated in the headline "The Only Times I’ve Ever Seen Them Work." I believe there exists a more comprehensive narrative to explore, particularly centered on the Fractional CRO or, in a broader sense, the Fractional Sales Leader. 

I extend my gratitude to Jason Lemkin for spotlighting the significance and sharing insights into instances where this concept has thrived:

1. Ownership and Commitment: The success of a Fractional CRO/CMO hinges on their ownership of the function and its core KPIs, with a stipulated minimum of 60% time investment. While ownership is pivotal, the time factor is less significant since the focus should be on outcomes, not hours expended.
2. Transition to Full-Time Leadership: Another scenario for the efficacy of a Fractional CRO/CMO is if they are instrumental in identifying and onboarding a full-time VP of Sales/Marketing. In essence, a successful fractional engagement culminates in the integration of a dedicated resource.
3. Mentorship for Existing Teams: A valuable opportunity arises when a robust existing sales team seeks guidance. The introduction of an experienced external perspective can foster growth and development.
4. Guidance for Novice Leaders: Similarly, a Fractional CRO/CMO can significantly aid a novice sales leader embarking on their role for the first time. The collaboration with a seasoned fractional executive can smoothen the learning curve.

Drawing from my extensive experience in placing Fractional Sales Leaders, I would like to append the following scenarios to the list:

1. Technical Founder’s Dilemma: When a technical founder lacks the expertise to construct a robust sales engine that transcends personal connections. This Fractional Executive must not only own the function and its KPIs, as emphasized by Jason, but also bring strategic proficiency.
2. Reviving Stagnant Sales Teams: In cases where a sales team faces stagnation and revenue plateaus, engaging a Fractional Sales Leader can reinvigorate the team dynamics with fresh ideas and seasoned experience, obviating the need to replace the VP of Sales outright.

After nearly four years immersed in the Fractional Executive sphere, I've encountered a plethora of scenarios. Fractional Sales Leadership isn't a one-size-fits-all solution; its suitability varies. Reflecting on this aspect roughly a year ago, I identified six pivotal factors to deliberate when making this decision:

1. Size of the sales team: It is the span of control question. How much time does it take to develop strategy, messaging, process, tools, and tactics, as well as train and coach the team on those, keeping an eye on the need for changes and executing them?

1. The ambition of the business: Maintenance or growth, preservation or change? Preserving the status quo is something almost anyone can lead. Change and growth require the skill and expertise a seasoned sales leader brings to the table.

1. The openness of the executive team: A fractional sales leader works intensely with the other functional leaders; executives heading operations, manufacturing, or legal are critical partners. They need to be aligned and accept a fractional executive as an equal.

1. Transparency regarding the engagement: A Fractional Sales Leader becomes a full member of the management team of the client company for the duration of the assignment. They will operate as part of the team rather than as an employee of an external organization. Unwillingness to operate under this transparency will lead to failure.

1. Compensation: As Founder, Owner, or CEO, consider what you need to, want to, and can afford to pay your Sales Leader. And since the simple formula is that you get what you pay for, this becomes a very transparent decision.

1. The openness of the owner or CEO: An outsider brings a fresh perspective, especially when this outsider doesn't need to think of a career or other benefits but rather focuses solely on what's best for the organization. This will produce new ideas, strategies, products, habits, culture, and so much more. The owner or CEO needs to be prepared to hear those truths and act upon them. Otherwise, it is a failed investment. 

In moments when Fractional Sales Leadership isn't a seamless fit every time, what then? It metamorphoses into an option - a relatively nascent yet deserving component for numerous SMBs seeking growth, transformation, and a novel outlook.