What is the difference between a Chief of Staff and a Fractional Chief? This article covers all you need to know.
Key Takeaways:
- What is a Fractional Chief
- What is a Chief of Staff
- Key differences between the two
- Why a Chief of Staff is what you need
Fractional Chiefs are becoming increasingly popular in the modern business landscape. These consultants offer more flexibility by running a business or parts of the business on a fractional basis. A Chief of Staff, which can also be fractional, may be the better option to keep your startup growing. Here are the key differences between the two.
What is a Fractional Chief
A Fractional Chief is a professional who works in an executive position on a part-time or “fractional” basis. They can take on the role of a CEO, CTO, COO, CMO, or even CoS and typically have prior experience working in a similar role full-time. An excellent way to think about these professionals is as consultants who provide strategy and planning services for critical functions of your company at a small portion of the price of traditional executives.
Fractional Chiefs set up the right plans and systems in motion to help businesses perform just as effectively as they would with a full-time executive. They also act as change agents, freeing up the founder’s time to focus on expansion and helping the business navigate new circumstances and avoid pitfalls.
These consultants are often paid on an hourly basis, per-project basis, or fee-for-service basis and can work in-person or online. They typically have a portfolio of clients and adapt their schedules to attend to all of them. Other roles include sourcing for new clients, handling the paperwork, and offering legal, branding, or accounting support.
The main reason why expanding startups and mid-market businesses opt for Fractional Chiefs over traditional executives is cost constraints. According to the Bureau of Labor and Statistics, it costs $213,020 on average to hire a full-time executive. This figure is well beyond what most startups and SMBs can afford.
Opting for a Fractional Chief ensures these businesses have access to top talent without the cost of hiring traditional executives – high salaries, taxes, and retirement benefits. It’s also more efficient for businesses that don’t need a full-time executive.
What is a Chief of Staff
A Chief of Staff is an executive-level professional who supports other top-level executives, such as CEOs and COOs, to create organizational efficiencies. Their responsibilities revolve around three functions – operations, strategy, and administration. However, they can also take on other roles based on the company’s needs.
Chiefs of Staff work to improve cross-functional communication, help the CEO manage their time effectively and make the right decisions, and streamline systems and processes to improve workflows. As such, their responsibilities can include the following:
- Performing duties on behalf of the CEO
- Managing the CEO’s calendar
- Supervising lower-level employees, such as executive assistants and project managers
- Corresponding external and internal communications, such as press releases, newsletters, and speeches
- Determining KPIs to measure performance
- Suggesting strategic initiatives for improving budget management, workflow, teamwork, and productivity
- Researching opportunities for business growth
Chiefs of Staff can quickly adapt to changing circumstances and work on tight schedules, making them ideal for today’s fast-paced business landscape. They are excellent leaders and can coordinate and execute top initiatives for the organization’s growth agenda.
These professionals also exude high emotional intelligence, creating a pleasant atmosphere in the workplace. They encourage employees during complicated tasks and know how to communicate considerately with all stakeholders. Emotional intelligence also allows Chiefs of Staff to remain calm and make the right decisions under pressure.
Chief of Staff vs Fractional Chief: what are the differences?
The main differences between a Chief of Staff and a Fractional Chief include the following:
1. Job duties
Fractional Chiefs, such as CEOs and COOs, act as figurative heads, developing the organization’s short- and long-term strategies. They make the major decisions and manage the company’s organizational structure, operations, and resources.
These professionals focus more on the direction of the organization. Their job is to participate in board meetings, review financial reports, examine suggestions by Chiefs of Staff, and implement strategic plans that move the organization closer to realizing its vision.
Chiefs of Staff play a supportive role to executives, helping them maximize their effectiveness and stay in touch with the organization. They manage the CEO’s schedule and keep them focused on top priorities by performing duties like attending meetings or handling entire projects on their behalf. Chiefs of staff also lead strategic planning processes and filter key information as it goes up through the executive rank.
In addition, Chiefs of Staff provide recommendations to improve teamwork and productivity across the organizations and determine the key performance indicators for measuring performance.
3. Job requirements
Chief of Staff roles emphasize operations management, project coordination, reporting, communication, and time management skills. A CEO’s role, on the other hand, emphasizes strategic and leadership skills. It places more weight on the executive’s ability to provide vision and direction for the organization.
3. Salary
The average salary of a Chief of Staff is $116,310 per year, while a chief executive’s is $213,020 per year. The exact figure may vary depending on the experience level, industry, company size, and whether they work full-time or fractional.
Why a Chief of Staff is what you need
A Chief of Staff helps you build, manage, and optimize your organization’s ecosystem, resulting in an environment with streamlined processes and better visibility. They ensure that communication flows seamlessly throughout the organization, helping all individuals and teams understand top priorities and how their role fits into the big picture.
Bringing in a Chief of Staff also means creating more time and focus for top priorities and things you excel at, like inspiring your team or building a product while staying up to speed on what’s going on within the organization. Moreover, they will be your soundboard, providing real-time feedback to overcome your blind spots.
Ready to get started? Book a call to learn how our Fractional Chiefs of Staff can improve your company’s efficiency. Focus on what truly matters, Chiefly Consultants will do the rest!
