“Flipping the House”

Consider real estate as a framing device for understanding fractional leadership. A private equity deal partner purchases a house to renovate and re-sell in a specific time frame. The partner buys the property and turns it over to a general contractor (an operating partner) to make the necessary improvements required for the partner to turn a profit. Seems simple enough. But what happens when the partner buys half a dozen other properties and turns to the contractor to manage THOSE improvements? Where is the strategy, structure, and scalability necessary to make ALL these properties profitable.

The contractor – or operating partner – in both situations is the one responsible for value creation. Their expertise goes beyond simply crunching numbers; these leaders are adept at making smart investments in growth. In the real estate example, they may choose certain finishes over others, or employ more contractors (such as a fractional Chief Sales Officer) to get the job done faster. The common thread is orchestrating the over-arching strategy that supports growth or, in this case, profitability.

Essential Criteria for a Fractional Sales Leader

First, a fractional sales leader must be trustworthy and experienced. They are charged with stabilizing and/or growing sales operations, and generally an equity partner in a business will not have operational expertise. It’s essential to hire a leader who is not only competent, but also excels at sales strategy and execution in a growth-oriented business setting.

Curiosity and flexibility are two key criteria for hiring a fractional sales leader. Onboarding times are often very rapid, so a leader must be able to jump in and contribute immediately. This means self-starting and relying on experience to take the reins of the sales organization without much background knowledge.

Identifying and hiring a fractional sales leader with a support structure behind them is also a critical measure for success. Since this leader needs to be able to make an immediate impact with very little guidance, having a firm like Chief Outsiders behind the fractional hire will go a long way toward adding even more value to a business.

One Client’s Story

We placed a fractional Chief Sales Officer last year who was charged with overhauling a struggling sales organization. Despite having a talented sales team, the business was missing the senior sales leadership needed to drive growth. Since onboarding this fractional Chief Sales Officer, the business has seen a 56% increase in sales pipeline, a 12% lift in average deal size, and an 8% reduction in churn. This came from restructuring the sales team, optimizing quotas, and revamping the sales process. Additionally, the Chief Sales Officer also developed a sales enablement function that brought marketing together with sales to drive execution.

Key Takeaways

Bringing on a fractional sales leader can be a game-changer for your sales organization. As one CEO stated: “The growth we’ve seen in pipeline, deal sizes, and customer retention has significantly accelerated our business expansion. I advise any CEO struggling with sales execution to consider the fractional model to fill gaps and ignite growth. The difference a fractional sales leader makes is substantial.”

The expertise and outside perspective fractional sales leaders provide is extremely valuable for early stage to lower mid-market companies lacking sales leadership. This flexible and affordable model allows businesses to scale executive sales leadership on-demand. For sales specifically, fractional executives make quick, high-impact changes through sales transformation and execution.

If you are looking to accelerate growth, overcome revenue stagflation and increase your company’s valuation, contact Dave for a complimentary consultation.

Topics: Sales Strategy, Chief Sales Officer, Fractional CSO