When is hiring an interim/fractional CPO a good idea?
1. When you aren’t able to attract the right candidate
Anyone who has hired an executive knows it can take a long-time to hire the right person and start getting value. It could happen because of an unattractive industry, location, low budget, recent bad press, company culture, talent shortage, poor timing etc. The leadership gap can create massive alignment issues and put your team and/or product off track by years, which is usually evident only in retrospect.
2. When you are establishing product function for the first time
Your team members have stepped up to drive the product forward, but they lack the experience and skills for building a product organisation. The type of CPO you need depends on the maturity of the product function in your organisation. It’s similar to how a startup CTO has a completely different role and responsibilities from a scaleup CTO.
Here are some instances when you may need to take a risk-averse strategy and test the waters first:
Understand what a product function is for
You need to build an understanding of what good looks like and the kind of leader you need before you start hiring a full-time CPO.
Start the journey towards becoming a Product-Led organisation
Your company is sales or engineering-led, which itself isn't a bad thing and could be a key driver of your success so far. A product-led organisation is critical for a product business to succeed. It differs from a sales-led org in myriad ways like collaborative ownership of KPIs, intense focus on customers, decision-making process etc.
Commercialise your AI research
Your data science team has uncovered a technological breakthrough after an eternity of research. You need someone to commercialise and turn that research into market-ready product customers love.
Establish product function in a non-tech organisation
The product development in your industry, e.g. robotics has generally been led by subject-matter experts like engineers. You need someone to gently and swiftly move your teams to a new and better way of working and thinking.
3. When you don't need a full-time CPO
You simply don't need a full-time CPO right now, and hiring (or promoting) one prematurely can be detrimental to your company and product. The cost of hiring the wrong executive is way more damaging than the value it adds. Here are some instances when you could consider hiring an Interim CPO:
Increase the maturity of existing product function
Your product team is nascent and not ready for an all-star prime-time CPO yet. You need someone to steer the team in the right direction by clarifying roles and responsibilities, coaching and putting in individual growth plans etc.
Provide support to technology and design leaders
Your CTO and Head of Design are driving the product collaboratively, but they are often spread thinly, leaving a gaping hole to guide their teams. You need a part-time person to fill the gap.
Not enough budget
The remuneration and total cost of hiring an executive can be astronomical. You could find yourself in a position where you need help in growing the product, managing teams and improving product culture but don't have enough budget to do so.
Need strategic advice
You have a cross-functional team of designers, engineers and product managers making good progress with the product. You need an experienced product leader to advise on the product strategy and review the overall business model.
Take you to the next round of funding
You need help with product positioning, pitch deck, product KPIs and customer feedback to build a great story for successfully raising the next funding round.
Hire hands-on PMs
You are hiring your first PM or don't have the in-house expertise to find the right person.
Need Fresh Perspective
You have hit the ceiling in terms of ideas and tried lots of things to no avail. This has left you frustrated, and your team is constantly going in circles. You need a fresh perspective from someone with a broad set of experiences.
4. When You Want Someone to Cover a departing CPO
Your CPO could have left for any number of good or bad reasons. The impact on morale and productivity on your team can't be denied. Hiring a product executive is a time-consuming, exhausting and expensive process. You may want to take a step back and assess before beginning the hiring process. In such instances, it's better to hire an interim instead to hold the team and product strategy together. I'm able to support you and the HR team is finding a suitable replacement when you feel the time is right.
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When is hiring an interim/ fractional CPO a bad idea?
1. When there is no buy-in from the leadership team
You will face an uphill battle to integrate and get the best value out of an Interim leader without buy-in from key members of your leadership team. I'll provide you with information to build a business case and discuss how to position me internally early in the process.
2. When your organisation isn't ready for change
Interim leadership is all about change, often rapid change. The rate of change is governed by the objective at hand, e.g. avert a crisis, push for growth, transition to a new phase etc.
3. When your culture isn’t favourable to outside help
The constant for any Contractor / Consultant in almost any company is a group of people who dislike them before they have stepped foot on their premises. In some cases, the hatred is pathological, and they are treated as second-class citizens. This is a recipe for disaster, not just failure.
4. When you need a figurehead to drive long-term cultural change
There are times when you need a leader to focus on the long-term cultural change and building future value instead of putting off immediate fires and deliver immediate value. You are better off hiring a full-time person in that case.
5. When you need a politician to resolve territorial issues
It's not a joke. It's not uncommon for a mid to large-size organisation to have departments standing against each other and sabotage the collaboration. You may need a diplomat in such cases to break rigid boundaries and facilitate innovation across the organisation.
6. When consulting costs worry you more than the outcomes and results
Consulting is knowledge work, yet some hiring managers tend to measure success with a yardstick of deliverables produced and hours spent. This attitude sets up any external collaborator for failure from the get-go and you are better off not hiring that person.
Not sure? Let’s have a chat to assess your situation. The initial consultation is free.