What is a Fractional COO? And do you need one for your agency?

A fractional chief operating officer (COO) is a great way to access senior operations leadership for your agency, even if you can’t afford a full-time executive. Many smaller agencies with fewer than 40 or 50 employees find it difficult to hire a legitimate COO due to cost constraints. However, a fractional COO can provide the strategic operations leadership needed by smaller agencies and delay the need for expensive executive hiring until they reach a larger scale. In this article, we will explore the benefits of leveraging part-time COO services or a full fractional COO for your agency.

What is a fractional chief operating officer (COO)?

A fractional COO can be the perfect solution for small to mid-sized businesses that require strategic and operational leadership but have budget limitations. These executives are experienced professionals in operations who can offer part-time leadership to help businesses achieve their goals.

Depending on the specific needs of your company, a fractional COO can take on responsibilities such as strategic planning, data operations and reporting, process improvement, project management, and team development. They can also alleviate some of the daily operational burdens from the CEO, allowing them to focus on higher-level tasks.

Hiring a fractional COO as a service is a cost-effective way to access senior-level operations leadership. Instead of incurring the expense of a full-time executive, businesses can contract for the services of a fractional COO on an as-needed basis. As companies continue to look for ways to maximize their resources, fractional COO services are likely to become an increasingly popular option.

Benefits of an outsourced COO for agencies

Bringing on a fractional COO for your agency can provide several benefits that can greatly impact your business’s growth and success. Let’s explore four key drivers why hiring a fractional COO is worth considering.


A fractional COO allows your agency leaders and CEO to focus on the long-term vision for your company and how best to achieve it. If your agency is going through a transition or attempting to scale, a fractional COO can help accelerate that growth in a manageable way. Choosing a fractional COO enables you to hire an executive without the commitment and high cost associated with a full-time position. The COO should assist in translating your vision into an actionable plan and provide a pragmatic point of view on decision-making, prioritization, and resource allocation.

Clear Direction for Your Team

Bringing on a COO ensures that operational decision-making is not left solely to your project manager, who may not have the bandwidth or expertise for strategic thinking. A fractional COO empowers your project management team and other operational staff to focus on executing their roles rather than worrying about strategy.

Imagine you’re the CEO and planning to change your agency’s pricing strategy from time & materials to a flat rate. This shift raises several strategic questions:

  • Does this change impact how we scope projects?
  • Should contract language and terms in our SOWs be revised?
  • Does this affect the definition of billable hours and its impact on utilization?
  • How does this influence our team capacity modeling?
  • Should we adjust our time-tracking tool setup?
  • What about how we analyze our Average Billable Rate?

A fractional COO can offer clarity to your team on the road ahead. With their experience and expertise, they know the right questions to ask and can ensure that the plan is well-designed to navigate the changes successfully. Your team can then focus on what they do best – executing the plan.


Every agency has its own pace and specific needs when it comes to growth and scaling. Not every agency requires a full-time COO. By hiring a fractional COO, you have the flexibility to choose how much of their time you need. Whether it’s 30% or 70%, you can bring in a flexible decision-maker with 10+ years of experience without having to pay a full-time salary. Additionally, a fractional COO brings a wealth of knowledge from serving other companies in similar situations. They can save you time and valuable resources by sharing insights and best practices learned from previous experiences.

Low Risk

Engaging a fractional COO significantly reduces risk compared to hiring a full-time COO. Fractional COOs have proven track records and bring extensive experience in doing the same work for other agencies. Their contracts offer more flexibility than traditional full-time positions, allowing for shorter time commitments. While their hourly rates may be higher than those of full-time executives, the overall cost remains proportional to the value they provide.

What does a fractional COO cost?

The cost of fractional COO services varies depending on the specific arrangement and level of service required. Generally, fractional COO services are priced similarly to expert-level accounting or legal advisory services. You can expect to pay around $200 per hour or more for an experienced fractional COO to advise your company. Most agencies should budget around $5,000 per month at the onset, which is approximately one-third of the full-time cost of a COO.

How to find a fractional COO

Finding and hiring top talent for your fractional COO role requires careful consideration and research. Here are a few steps to help you find the perfect fit:

  1. Define your needs: Determine the specific expertise required, the budget you can allocate, and the responsibilities the COO will handle.
  2. Research: Utilize resources such as LinkedIn, FractionalLeaders.com, or FractionalLeadership.io to find potential candidates. Seek referrals from other business owners or industry experts who have hired fractional resources.
  3. Due diligence: Conduct extensive interviews to ensure the fit is right before committing. Be mindful of the time commitment and contract length to avoid taking on unnecessary risk.

What types of agencies should hire a fractional Chief Operating Officer?

If you’re a business owner with less than 70 employees and lack deep expertise and background in operations within your team, hiring a fractional COO could be immensely beneficial. A fractional COO is especially valuable for small businesses or agencies that need fractional data operations services to ensure accurate and efficient systems, reporting, and data management. By bringing in the expertise and talent of a fractional COO, you can improve your agency’s efficiency, profitability, and overall operations, allowing for smoother growth and better systems.


In conclusion, a fractional chief operating officer can provide the senior-level operations leadership your agency needs without the cost and commitment of a full-time executive. By leveraging the expertise of a fractional COO, you can accelerate your agency’s growth, gain clear strategic direction, enjoy flexibility in resource allocation, and reduce risk. Fractional COO services offer cost-effective access to experienced professionals who can optimize your agency’s operations and contribute to its long-term success. When considering whether to hire a fractional COO, evaluate your agency’s specific needs and budget, research potential candidates thoroughly, and make an informed decision that aligns with your goals.

Related Articles

Back to top button