In my previous blog, I identified some of signs of “Business Malaise” that could signal a growing disconnect between the business vision and the company’s growth goals. And as noted, when you consider the competitive pressures wrought by the hyper-charged business universe, early indicators of corporate distress are best addressed sooner than later.

Many small and mid-sized companies face this situation – desperately in need of skilled marketing expertise – but believing that they lack the resources to procure it. That is why I am devoting this post to explore a new option – the Marketing Executive-as-a-Service. 

Executive-as-a-Service

Think of Executive-as-a-Service as “C-level expertise on demand,” where you pay as you go - for what you need - without pricey search fees, long-term contracts and/or commitments. Actually, the concept of “hiring” just the amount of executive talent you need is not all that new. A little over 20 years ago, John and Doug Tatum founded a professional services firm, Tatum, which would become synonymous with fractional chief financial officers (CFOs). Their part-time executives would join companies that could not justify a full-time CFO. Over time, Tatum grew to offer chief information officers (CIOs), chief operating officers (COOs), and other “CXOs”.

The role of a Chief Marketing Officer (CMO) provides a market-based perspective that serves as the foundation for accelerated revenue and growth. Here are nine compelling reasons why you may want to consider using “Marketing Executive-as-a-Service.” It could be just the catalyst you need to jump-start your company’s growth.

1. Faster results: An experienced marketing executive does not need formal onboarding or extensive policy training. Their training and experiences will add value quickly.
2. An understanding of the whole picture: A fractional executive is like a marketing “bundle” – a self-contained package of strategy, project management and execution with the knowledge, tools and resources to get positive results.
3. Power in Numbers: Companies that provide Executive-as-a-Service may offer clients the power of “many” with a peer review service. This is when your part-time executive works with their colleagues to validate prescribed strategies and solutions.
4. Keeping to the budget: A hired consultant can’t go over budget without approvals. End of story.
5. Less political maneuvering and more action: An “Executive-as-a-Service” is the “Switzerland” of your company. They do not get entrenched in politics, and find it easier to step back and provide an unbiased view of issues.
6. Documented deliverables: The deliverables will be part of the agreement, and you pay for what you get – not what you hope to get.
7. Real return on your investment: An executive level marketer will ensure that measurements and analytical reports are set so that results for each program or initiative can be measured - both individually, and as an aggregate.
8. Current on technology and tactics: A marketing executive who understands the latest technologies and tools will offer you the faster, bigger, better and cheaper path to growth.
9. A fresh perspective: CEOs and their team are often too close to the business to see what a different set of eyes can detect. An outside expert can often spot root causes and issues that may not be apparent to insiders.

And the 10^th and bonus reason that you should consider a “Marketing-Executive-as-a-Service” – you get to keep more of your money. Sometimes CEOs and CFOs are under the impression that hiring a full-time CMO is more cost effective than engaging the services of an outside advisor. Not necessarily true and here’s why.

Cost Considerations of Hire vs. Contract

When you look beyond a simple “hourly-rate” comparison of the two models, and factor in the often overlooked costs associated with a full-time executive hire, you can see that contracting outside services can really be a cost savings.  Typically, the overlooked costs of a full time hire include:

• Benefits
  • Health insurance, unemployment, disability
  • 401k and Executive Compensation
  • Payroll taxes paid by company
  • Company Equity or Stock
  • Vacation and holidays
• Administration - HR, onboarding, training and education
• Retention and Severance Packages
• Travel and entertainment
• Conferences and trade shows
• Real estate (office)
  • Furniture, supplies, computer hardware and software
  • Utility and resource usage
• Books, subscriptions, memberships

Change is accelerating at an accelerating rate, and survival today requires the ability to make informed decisions - quickly. Since time is a fixed resource, it needs to be managed with the same vigilance as hard dollars. When making choices, do not forget that lost time is a real cost. And, who knows? After some great marketing results, you just might be in a position to hire that full-time CMO!

Consider using the “executive-as-a-service” approach as a fast and cost-effective way to recharge marketing for your company.  What is the cost if you don’t act?