An outsourced CMO can often be a valuable part-time addition to an organization’s executive team that provides an outside perspective at a lower cost than an in-house full-time executive would demand.
Bill Huberman is a seasoned business consultant who founded his own consulting firm, Strategic Consulting International, in 1985. In his early years, Bill Huberman was an entrepreneur-turned-consultant who helped firms in the aerospace, defense, energy, healthcare and communications industries develop new models and implement innovative technology. He received a bachelor’s degree in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago, specializing in financial management.
Bill Huberman sees his role as promoting solutions for small businesses through creative branding, technical innovation, and effective marketing. He believes that the best way to attract and retain top employees is to hire an outsourced CMO. “Outsourced CMOs are an affordable, time-effective way to bring a top marketing team on board,” says Bill.
“A small business owner doesn’t have the luxury of hiring and firing employees, so they must use other staffing strategies to attract and retain tomorrow’s top talent.”
To execute on this strategy, an outsourced CMO may be necessary in order to attract and motivate top talent. A part-time CMO is not designed for long-term engagement, but rather for part-time engagements that occur on a regular basis, such as a marketing agency bringing someone on once a quarter for meetings or training. A large agency will need a full-time CMO, while a smaller firm may need a part-time one on a seasonal basis. Smaller agencies may also choose to outsource a marketing agency, which provides services like design and development, to focus on its core functions.
Fractional hire is more advantageous for small businesses, as well as agencies looking to hire an outside expert.
The CFO at a large company would oversee a large number of employees, giving a marketing agency an opportunity to hire an in-house expert, but that employee would only be available during the business hours. If the agency needed to conduct meetings or training during the night, it would incur expenses for overtime pay, without making any savings for the company. Hiring a fractional hire professional allows the company to save on expense when a large task, such as hiring a CMO, is required on a periodic basis. This also helps the company to avoid hiring another part-time employee who has the skills and knowledge of a specific field.
While hiring in-house may be advantageous in the short-term, it can be costly in the long-term. A good CMO will have experience in similar fields to that of the hired employee, but a seasoned professional may be less inclined to take on a project that requires advanced knowledge. For instance, an outsourced who’s skill set might include working with finance, but the financial sector isn’t his forte. When the time comes to train him in finance, the company would need to spend more money than it would if it had hired an in-house financial manager.
Fractional hire agencies are most effective when they are used in combination with an outsourced CMO.
When an in-house marketing strategy is implemented, many of the problems that come from trying to hire and retain employees are avoided. The company simply needs to make sure that the right people are hired, at the right time. By using a fractional cmo to hire a new expert, the agency can also train the in-house cmo and get him up to speed on the specific field in which he is required to work.
A popular reason why a fractional who might be a good idea for a digital marketing agency is due to the company’s wide range of expertise. If one area of expertise is struggling, the digital marketing agency can easily find another expert with a different skill set to help out. Many companies have dozens, even hundreds, of specialists that they regularly use when trying to resolve problems. Outsourcing to a smaller company that has dozens of specialists can improve efficiency. Even when the company only uses a fraction of its available experts, when it uses the outsourced cmo they still get a wider range of experts to draw upon.
Because digital marketing agencies frequently use the services of an outsourced CMO, they have access to training material that an in-house staff member would be unable to acquire.
In addition, they can save money by not having to buy training materials for their own staff. These agencies can also leverage the knowledge and experience of the outsourced to. An outsourced who might be experienced enough to know which issues are important and which aren’t. Digital marketing agencies might not know everything, but they can usually rely on the outsourced cmo to provide them with relevant training and knowledge so that they can properly execute their new marketing strategy.