A great hire can push a team to unprecedented levels of success, while a poor one can cause problems well beyond sunk costs. And the stakes are even higher at the executive level. There’s more money, more responsibility, bigger expectations and often, a greater need. Most organizations can’t afford to get these hires wrong.

By now, you’re well aware of the fractional trend sweeping through the U.S., in which organizations are choosing to bring on high-level, high-skill talent on a part-time and project basis in a range of different C-Suite roles. Organizations can save money while getting access to a leader they could not afford otherwise, while also de-risking the hiring process through contract lengths and the ability to turn support on and off based on their needs.

But like any other type of working arrangement, a fractional executive will work extremely well in some situations and be less effective in others. While every organization is different and every situation has its own nuances and complexities, the following scenarios were identified by Canopy’s own experts as those in which a fractional executive would be the ideal choice.

1. Unlimited ambitions, limited budgets

Cost effectiveness is routinely listed as the top benefit for organizations in bringing on a fractional hire versus their full-time equivalent. Whether or not you agree where that benefit belongs on the list, our community of experts agrees that it should be a factor you consider in approaching any executive hire.

It’s well-documented that hiring a fractional expert, especially at the executive level, can save organizations a bundle. When you factor in the timebound nature of the work and the fact that most fractional experts will not receive health insurance or other benefits, the savings can run into the hundreds of thousands of dollars. In the case of a financial executive, assuming an average per hour rate of $350 per hour and a year-long contract, hiring a Fractional Chief Financial Officer (CFO) might cost an organization close to $168,000, while total annual pay for a full-time CFO might run an average of $742,011.

If you have large projects on the horizon or you have critical needs that can’t be filled with your internal team, and you’re limited on budget, it makes economic and strategic sense to consider a fractional expert first.

“Even for organizations with a lot of resources and reserves, it can take months or even years to recover from a bad hire. The ability to de-risk an executive hire, even slightly, continues to be a powerful selling point for fractional experts,” said Griffen O’Shaughnessy, founder and CEO of Canopy Advisory Group. “Significant cost savings aside, fractional hiring offers a way to access expert, executive-level talent without locking you in if things go sideways.”

2. Executive leader transitions

An executive-level hire is a big deal in any organization. Even if these hires don’t work out as planned, there’s a ton of pressure on founders and CEOs to “make it work,” at least for a certain period of time. On the flip side, when the new leader performs extremely well, founders and CEOs need to worry about how to retain an individual who will be in high demand.

Regardless of how an executive leaves the business, the hole they leave in the organizational structure presents both opportunities and challenges. From the perspective of the founder, CEO and Board of Directors, the opportunity is to bring in new skill sets and new thinking. The challenge is to minimize the disruption and, in the case of losing someone valuable, limit the damage from their departure.

The situation is often extremely suitable for a fractional hire given the need to bring someone into the business quickly, the strategic nature of the position in a period of transition and the level of experience required to navigate a potentially difficult situation (including the possibility of preparing for a full-time hire in the role within the next year).

“When you lose a high-level executive who was important to the business, there’s often no clear direction, and the team may not know where to turn,” said Canopy Marketing Expert Kate W. “A fractional executive immediate senior-level expertise without the full-time cost, no annual salary, no benefits overhead. They can step in quickly, stabilize the team, assess the landscape, and drive strategic action.

3. Periods of rapid growth

Early on, much of the messaging around fractional hiring centered on the use of fractional experts as stop-gap measures in transition periods. While many organizations continue to use fractional hires to bridge these gaps, a growing number are discovering the value of fractional experts in accelerating growth plans.

Whereas the first two scenarios are clearly tailored more toward hiring a fractional expert than a full-time resource, the growth stage is a situation where you’re making more of a strategic choice. Regardless of the discipline for the role (e.g., CFO, COO, CRO, CMO, etc.), a full-time hire can certainly prove to be an excellent choice, especially if the individual ends up being a longer-tenured member of the organization and is a leader that the founder and CEO wants to grow a team around.

Reasons a founder or CEO may wish to go with a fractional expert in a growth scenario include:

• An interest in keeping costs down while maximizing impact
• The need for speed-to-impact, including areas like faster onboarding and truncated time-to-result
• A desire to bring in an executive leader with very specific situational experience
• A market or organizational situation that prioritizes agility and the ability to react and adjust quickly

4. Navigating large-scale change

While the departure of a leader or leaders certainly qualifies as change, these are far from the only situations where fractional executive hires can be instrumental in helping an organization withstand turbulent times. And unlike a situation where a single leader leaves an organization and the founder, CEO and Board are forced to move quickly to replace them, a large-scale adjustment to the direction, model or structure of an organization can (paradoxically) provide a bit more breathing room for leadership to approach the problem more strategically.

Similar to the rapid growth scenario, founders, CEO and Boards have the potential to be successful in this situation with either a full-time or fractional hire. In this case specifically, the choice can be largely dependent on the strength and clarity of the organization’s business plan. Clarity on direction often brings with it an understanding of the team that’s likely to be able to fulfill the long-term vision, and in these instances, leaders tend to lean toward full-time hires who can grow with the organization. While fractional experts can perform quite well in this scenario, organizations may choose to skip a bridge option and move straight to a longer-term hire.

Conversely, for all of the reasons fractional experts thrive in any organization, founders, CEOs and Boards may choose to bring in an experienced expert to help them build the future direction of the organization. In this case, they can also provide recommendations on who to hire to build a full-time team, and when it makes the most sense to hire those roles. 

We have also seen leaders set a new direction and then compile a group of the best fractional experts available to drive the plan forward. Whether or not this is a longer-term solution, it invariably helps the organization gain the traction and foothold necessary for a new direction to get off the ground.

Canopy Nonprofit Expert Meg G. described what a fractional expert engagement can look like during a major organizational change: “Sometimes during the life of a nonprofit, the Board of Trustees may find that a total restructuring of staff and mission is required. I went through this for a magazine, during which I was called in to supervise the restructuring and to shepherd how the magazine approached production, management, marketing, fulfillment and more. The process took approximately nine months.” 

___________________________________________________________________

Thank you for reading! If you’re interested in hearing more from our experts on when and how to hire fractional executives, check out our guide, Demystifying Fractional Executive Hiring.

The post Hiring an executive? Here are the top four scenarios where fractional makes sense. appeared first on Canopy Advisory Group.

Fractional services can help organizations become more efficient, innovative, and profitable. Fractional CFOs provide essential financial assistance and guidance to companies during periods of growth and can help a business stay competitive in any market. 

This article will explore a fractional CFO’s role within an organization.

What Does a Fractional CFO Do?

Organizations may bring in a fractional CFO to manage financial challenges that exceed the expertise or ability of the in-house team to solve. A fractional CFO may partner with an existing CFO to address challenges or fill in for companies that do not have an in-house CFO.

Some of the specific financial challenges a fractional CFO may help with include the following:

• Low gross margins
• High expenses
• Outdated or insufficient systems
• Cutting costs
• Cash flow problems
• Audits

Fractional CFOs can also help organizations optimize and implement forward-facing financial visibility. They can often invest time and energy in the future while other financial professionals focus on day-to-day operations and accurate bookkeeping. They may develop economic forecasts, prepare budgets, and analyze potential markets, services, products, and customer segments.

Fractional CFOs help companies reach financial goals by navigating mergers and acquisitions, preparing for sales, and raising capital. They can assist with a variety of other tasks that lead to progress and growth, including:

• Producing financial forecasts
• Sitting in on board meetings
• Developing strategic relationships
• Analyzing term sheets and contracts
• Overseeing due diligence

A fractional CFO’s assistance may be especially helpful for small to medium-sized companies during periods of growth. A fractional CFO can help growing organizations in several ways, including:

• Implementing systems that encourage sustainable growth
• Improving visibility and analytical capability to create actionable information out of massive amounts of data
• Identify sources of revenue loss, cost overruns, and operational friction as the business grows
• Hire new employees and develop existing ones 

Most fractional CFOs have extensive experience helping organizations achieve financial goals and manage complex business deals. Many have helped companies raise millions of dollars of equity funding and managed numerous mergers and acquisitions. The expertise and experience a fractional CFO provides are valuable assets to companies of any size.

The Benefits of Hiring a Fractional CFO

Organizations of all types and sizes may benefit from outsourcing a CFO. Small businesses may find hiring a fractional CFO helpful as their company grows and changes over time.

Here are some of the potential benefits of hiring a fractional CFO.

Cost savings

Hiring and retaining an in-house CFO can cost hundreds of thousands of dollars a year. Many organizations simply cannot afford to do this. Hiring a fractional CFO may save companies a lot of money–as much as $100,000 in some cases. 

Financial leadership

Hiring a fractional CFO means you’ll have skill and experience when you need it most. A fractional CFO offers objective advice and leadership to help your business improve its bottom line and maintain growth.

Better profit margins

Expert guidance from a skilled CFO can lead to a healthier bottom line. A fractional CFO will work with senior leadership to develop a budget, identify areas of excessive spending, and analyze monthly data to identify the sources of profits. 

Find a Fractional CFO in Denver

Find a Fractional CFO Denver by reaching out to the Canopy Advisory Group today. Contact our team to learn more about our services.

The post What is a Fractional CFO and How Do They Differ From a Traditional CFO? appeared first on Canopy Advisory Group.

On-demand consulting refers to a type of consulting service where experts provide advice, guidance and solutions to clients as needed. This is generally on a per-project basis, which allows clients to access the expertise of consultants without the commitment of a long-term contract. Collaborating with on-demand consultants can deliver a multitude of benefits that are moving at the same pace as your business.

Advantages to On-Demand Consulting

Whether it’s business strategy, growing your team, or needing help with human resources of public relations, the right on-demand consultant can give you access to an array of professionals to get the answers for your business. Two of the biggest advantages to on-demand consulting is the flexibility and cost-effectiveness. This type of consulting allows clients access to expert advice and guidance whenever they need it. This offers flexibility in terms of project duration, scope, and specific type of expertise that’s required. 

Since services are paid for on an as-needed basis, clients can engage with consultants for short-term assignments or specific tasks – all while accessing the particular expert they need. The specialized network of knowledge and skills can be used to bring industry-specific insights, best practices to help the client solve complex problems or to make strategic decisions. Also, because these instances are as-needed, there is a quick response and turnaround time. The consultants are readily available to offer timely advice, address urgent needs, or provide quick solutions. That agility can be critical when launching a new product, addressing internal issues as they come up, or making the right hire in a short window. 

How Does it Work?

First and foremost, it’s important to identify the needs or requirements for what you’re searching for. Whether you’re looking for financial analysis, improvement of processes or market research, on-demand consultants use their network to get you in front of the right people to help your particular situation. This can include one or more consultants, and once engaged, they will collaborate and communicate closely throughout the project. 

Transparency is key to make sure things are aligned, and the consultant will analyze the situation, identify challenges, and come up with customized solutions. Once these findings are presented, the client delivers crucial feedback to allow fine-tuning of the solution. These consultants can be used to tackle individual issues, or multiple issues at once. The right on-demand consulting firm likely has a diverse network of consultants at their disposal, allowing for a versatile approach to solving many issues that arise in your business. 

A key advantage to on-demand consulting is that clients can gain quick access to experts for advice that’s tailored to their expertise without the long-term commitment. This flexibility and scalability is critical in today’s fast-moving business climate. For more information on how on-demand consulting could work for you, reach out to the experts at Canopy Advisory Group today.

On-demand consultants are here to help foster growth in businesses by allowing them to take on organizational challenges with the comfort of professional advice. 

The post What is On Demand Consulting & How Does It Work? appeared first on Canopy Advisory Group.

When you meet with a new client, what do you start by asking?
What are they working on. What stage are they at. And What are they hoping to address.
For example, when working with non profits that are trying to grow it start with figuring out how they are trying to grow, how they see themselves in the space, and how they stand out – then we discuss how I can support them.

What are you seeing in the non profit sector these days?
I mainly work in the non-direct service sector and breaking through the noise of direct service non profits is difficult because those are typically seen as higher priorities. So with what I do, so much of it is finding that perfect position so you can earn the grant and support. With more focus on DEI as a funding piece and sponsors having more say about what their money goes towards, asks have to be so clear about their initiatives and how what exactly the money will go to – there’s far less opportunity for generality.

What are some things of note for non profit leaders?
Non profits see a lot of staff burnout because there is always so much work to be done. It’s important to make sure every minute spent is the best use of the company’s money and the staff’s time, that efficiencies are noted, and that the limited amount of money and time is always allocated in the most impactful way.
Related to time and money limitations, non profits also need to be careful about saying YES. So often they want to say YES because they want to grow and provide more help, but the first thing they need to do is look internally and figure out if they would actually be able to support the new project. Asking questions like, who’s going to pay for the project, what is the intended outcome of the new engagement, and does it truly align with our mission is where the decision to say yes or no need to come from.

What drew you towards working with non profits?
Helping people figure out how to do great things is what I love. Helping them figure out how to build a great organization, build a board, create a message that attracts people, or make sure the company is reaching the people they want to serve are all such involved challenges and it really takes so much work and creativity to run a non profit so I like to be there and help them get there.

The post Q&A with Nonprofit Expert Alison M. appeared first on Canopy Advisory Group.

My experience as a fundraiser and as the executive leader of a high-level development teams has been valuable to clients interested in improving their fundraising results. My advice has helped my clients identify the strengths of their organization’s mission, staff and board to make their fundraising more effective. I can help my clients more effectively engage important supporters inside their organizations, identify new supporters and increase support from current donors with the goal of furthering the mission of the organization.

How were you able to turn your passion into a career? 

I have been fortunate to turn my passion for the wonderful work of Metro Denver’s nonprofit organizations into a satisfying and successful career as a nonprofit executive. My passion for education and youth has been fed by the many organizations who are doing such great work in this area. My love of the arts and the environment has also fueled my desire to work with donors and volunteers supporting our creative community and the stewardship of our natural resources. It is tremendously rewarding to work with staff, board, clients and supporters of some of the most important causes of our time.

Share one way that you have helped a client experience a positive change.

Recently, I had a client who was struggling to get support from a local foundation.  They didn’t have a good connection with the executive team at the foundation, nor did they really understand the foundation’s funding priorities.  I was able to connect with executives at the foundation, set appointments with executive leaders and find a funding match.

What do you enjoy in your free time?

In my spare time, I thrive on being outdoors; walking, hiking, playing golf. I enjoy travel and cooking nutritious food. I am a voracious reader and a lifelong learner.  Most of all, I love doing any of the above with friends and family.

What were the most challenging and rewarding aspects of working for Denver Foundation as the CEO?

The most rewarding aspects of being in leadership roles both at the DPS Foundation and The Denver Foundation, involved situations where we needed to raise significant support for programs with major community impact.  I love to work with a team to identify potential donors to the project, cultivate those donors, involve them in the project they are supporting, and provide excellent stewardship along the way.  The reward comes when we know we are helping provide a better community for everyone.

The post Advisor Spotlight: Nonprofit Consultant, Barbara Berv appeared first on Canopy Advisory Group.

I got involved with the charter school movement after learning more about the low graduation rates for students in Denver Public Schools.  I was appalled to realize that, at the time we started DSST, the odds of a low-income DPS student attending college were about 10%.  I believed that my previous experience as an entrepreneur had prepared me to tackle the challenge of starting new, more effective schools. After the launch of DSST, I saw an opportunity to support others who wanted to create innovative new schools. Between my work with DSST and Get Smart Schools, I’ve played a role in the development of more than 20 schools, and those schools are changing the future for thousands of students.

How have you turned your passion into a career?

I feel incredibly lucky that I get to work in the nonprofit sector helping all kinds of visionaries put their ideas into action. While I am passionate about education, health care, and human services, which are the fields most of my clients work in, what I truly love is supporting leaders who have big ideas and seeing those ideas take flight.

Share one of the most exciting ways you’ve helped a client experience positive change.

One of my clients was a youth service organization with a track record of success that was experiencing some stagnation.  I led the Board through a process of revising its mission and vision statement and developing a strategic plan in line with the new mission.  Through this project, the Board and Staff were reinvigorated and rededicated themselves to the work, and the organization has subsequently seen gains in everything from fundraising to program participation.

What has been your most gratifying project?

 
A few years ago, I facilitated a large-scale strategic planning process at Children’s Hospital Colorado.  The goal was to identify new ways that the hospital could identify young children who are living in vulnerable situations and ensure that their families are receiving the support they need to give their children the best possible start in life.  It was exciting to be part of a project that has the potential to impact so many kids and families and to really change outcomes for families.

What do you enjoy doing in your free time?

I have two toddlers- I don’t remember what free time is!

The post Featured Advisor: Nonprofit and Financial Consultant, Amy appeared first on Canopy Advisory Group.

What spurred you to start your sustainability consulting business?

I had hit a turning point in my career where no suitable position seemed to fulfill me. I started to think about the importance of connection building as a key element to social, environmental and economic impact work, and realized there may be a niche for someone to help companies and nonprofits partner more effectively. When I realized my current organization was just not a good fit for me anymore, I gave 60 days’ notice, began writing my business plan, and the rest is history!

What advice can you offer companies or consultants to build a successful consultant-client relationship?

I recently had an epiphany around the concept of active listening. I realized that what made my best relationships work was mutual learning, respect and the ability to hear each other. Some of my closest clients have become good friends, in large part because I spend a lot of time asking questions, listening and learning about what makes the client feel successful and fulfilled. I then incorporate much of that into the work we are doing together.

Share one of the most exciting ways you’ve helped a client experience positive change.

One of the most exciting ways I work with clients is to develop innovative and new ways of partnering to affect change. One of my clients was receptive to a new way of partnering to achieve their nonprofit mission. We tested this method with a partner I recommended, and it has developed into a global partnership with much opportunity to change the space of economic development. To see our idea to fruition was incredibly exciting.


What do you enjoy doing in your free time?

As an entrepreneur, wife and mother of two boys, free time is a bit hard to find. That said, I love to read, travel, watch my kids play sports and am an avid football fan (go Cleveland Browns!).

The post July Featured Advisor: Nonprofit & Sustainability Strategist Joanne appeared first on Canopy Advisory Group.

1. 1. It provides the needed expertise to run a nonprofit business, ESPECIALLY when there’s a likelihood of existing confusion, transitional and other change, possible demoralization.
   2. It puts an “outsider” with no organizational baggage in the position of guiding, stabilizing, running the organization.

1. It means the Board can do its job—govern—and not worry about getting engaged in day-to-day operations.
2. It means the staff can do its job—implement the mission—and not have Board micromanaging (out of necessity) the day-to-day operations.
3. It sends out the “right” message to many funders—from government officials to foundation leaders, the major donors and more—that the important business of implementing the mission (via their dollars!) is the top priority.
4. It provides an often needed “built-in” consultancy that gives honest and direct feedback on organizational issues needing to be addressed so the new ED has a better chance of succeeding.
5. It protects everyone from burnout. Program goes on while the Board can recruit and hire the new executive director.
6. It provides an opportunity for “insiders”—both Board and staff—to step up as key leaders to help the interim ED, but with reasonable and not heroic expectations.
7. It protects “in-house” candidates from the dilemma of managing two jobs (often interim ED and their normal work) WHILE they’re also interested in, perhaps pursuing the permanent ED position.
8. It is not only affordable, it can provide considerable cost savings, especially if the Board takes the time to thoughtfully recruit the permanent ED. On the other hand, if the replacement process is hurried and doesn’t work out, the organization must repeat the process, costly in so many ways; and finally,
9. It can translate a tough transition time into a creative and healing time, especially when the organization has gone through more than the normal share of stress, change, and possibly grieving.

The post An Interim Executive Director at Your Nonprofit? appeared first on Canopy Advisory Group.

Anyone reading this can find some aspect of life that rings true to Einstein’s wisdom. Whether you are parenting a child, hitting a tennis ball into the net over and over, or figuring out how to generate greater impact for your non-profit organization, the key to getting different results is to stop, reflect, and then make a change. That is much easier said than done, as change is known to be pretty hard.  But, if you are feeling insane and looking for different results, stop and reflect on the concept of a partnership for your organization.

What makes a partnership a partnership?

Partnerships come in all different forms: from public-private partnerships with nuanced definitions to strategic alignments, collaborations and mergers between non-profits.  No matter the form it takes, a successful partnership brings together organizations that have a common purpose and share in the rewards as well as the risks.  For non-profits, partnerships often result in sharing funding, which may be cause for trepidation among non-profit administrators.  Before you shut the door on the idea of a partnership, consider whether or not your organization will meet its mission more effectively and with better results – despite the possibility of sharing a part of your funding stream with a partner.

A mission driven process

Metaphorically, a mission statement is the “wind that brings you to the desired harbor, it guides your travel and powers your momentum.[1]”  Changing direction might not look like what you originally imagined for your organization, it might feel like you are loosing leverage or giving up a piece of the funding, but from the perspective of a funder, partnerships are attractive and reflect efficiencies in organizations.   A community relations manager at a Denver area Fortune 500 company who reviews hundreds of grant applications noted, “I see seven to ten applications from organizations with nearly identical missions all applying for the same pot of money; it’s so competitive and I always wonder if they realize how much more effective they would be if they were working together.”

Realized efficiencies

Creating efficiencies in an organization can often translate to a fundamental restructuring of staff.  A perfect example of this is an award winning public-private partnership between the City of Centennial, Colorado and CH2M Hill, an environmental and engineering consulting company headquartered in Centennial.  Under the direction of Mayor Cathy Noon, Centennial has pursued a “contract city” policy.  In 2008, Centennial public works director, David Zelenok, led the partnership initiative to completely outsource all of Centennial’s public works to the private sector. This partnership model has been nationally recognized and ultimately led to the elimination of Mr. Zelenok’s position as public works director. He now serves as the Chief Innovation Officer for the city of Centennial and spends his time, “instilling a culture of ‘thinking outside the box’” and seeking opportunities “that lead to partnerships and unique ways of structuring or restructuring the basic functions of our government.”

The unexpected partner

Weather you work with a for profit-company or a non-profit organization, you have competitors who secure more funding, attract more donors, or take more market share. In the field of education, charter schools and school districts are text-book competitors: for ever child a charter school enrolls, the less funding a district has to operate with.  Despite the seemingly obvious conflict of interest, sometimes a partnership with a “competitor” is worth investigating.

First State Montessori Academy, a charter school, partnered with the local Delaware school district to launch the first  public Montessori program in the state of Delaware.

First State Montessori Academy, a Delaware charter school, faced a string of challenges in their initial two years of applying for a charter.  When it seemed they had hit a brick wall with Delaware’s Charter School Accountability Committee and were looking at a two and a half year lag before Montessori public education was a reality in Delaware, the charter board stopped and reflected on their options.  A board member finally suggested talking to the Districts to see if they would either charter the school or start a program.  It seemed ludicrous at first, but in the end it was a success.  It worked because the boards of both organizations put competition aside and focused on their respective missions.  Together these two competing entities – a charter school board and a school district – managed to launch the first Montessori public program in the State within fourteen months of their first meeting.

How to get started

The co-architect of a partnership is likely going to be a peer whom you already know (or know of): a professional working in your non-profit’s field of interest, a perceived competitor, or perhaps a private company that you are already engaged with in a service relationship.  Before you pick up the phone or send an email, the stop and reflect stage is crucial for mapping out the goals and desired outcomes of a possible partnership.  This is when Einstein’s take on insanity comes in – in short you need to make a change.

Recognizing that change is coming may be especially challenging for a small non-profit where dedicated, long-tenured staff members are not just professionally invested in their organizations, but very often are personally and emotionally invested in the purpose of their non-profit.   When this is the situation, it is easy to become stuck in organizational norms: “this is how we have always done it.”

Bringing in outside support will help facilitate two importation phases of starting and structuring a partnership.  A consultant brings experience, a fresh perspective and an objective voice to the process, enabling you to see the big picture and recognize how changing your approach does not mean changing your purpose.   Once a partner is on board and the details of sharing risks and benefits are taking shape, outside support is again recommended.  Effective partnerships require sound documentation that delineates goals and outcomes, structures responsibilities, assigns liability, identifies revenue streams, and clarifies how income is shared.   Depending on your needs, a letter of intent, memorandum of understanding and/or contract will be required and legal counsel is essential for those documents.

Sanity

The links embedded in this post provide additional insight to different partnerships and the various ways they are structured, which can help spark ideas for what can work in your organization.  Now that you have stopped to read this post, reflect on the possibility of a partnership; it’s the sane thing to do!

[1] http://www.ascd.org/publications/books/107042/chapters/Developing-a-Vision-and-a-Mission.aspx

The post HOW TO CREATE SUCCESSFUL CIVIC AND NON-PROFIT PARTNERSHIPS: PART ONE appeared first on Canopy Advisory Group.