How to Become a CFO in 5 Years: A Strategic Path to Financial Leadership

Becoming a Chief Financial Officer (CFO) is one of the most prestigious and demanding goals in the financial world. While many professionals spend decades climbing the corporate ladder to reach the C-suite, it’s entirely possible to accelerate this timeline with the right approach. You can become a CFO in just five years by taking deliberate steps, building a solid foundation, and cultivating key skills. How? Our comprehensive guide offers a detailed, strategic plan to fast-track your journey to financial leadership. Read on to learn more.

Step 1: Lay a Strong Foundation Early in Your Career

Your journey to becoming a CFO begins with the first job you take. Every role you choose should help build a strong foundation of financial expertise, leadership potential, and business acumen.

What does that mean in practical terms?

You’ll want to begin with the following steps:

Start in High-Impact Financial Roles

The early years of your career are critical. Choose roles that expose you to key financial responsibilities, such as financial analysis, accounting, or business controlling. These roles will help you develop a robust understanding of budgeting, financial forecasting, and data analysis—skills that are vital for any CFO.

More importantly, these positions should allow you to work across departments, giving you a well-rounded perspective of how different parts of the business contribute to its financial health. This cross-functional experience is invaluable for developing the strategic vision necessary for CFOs.

Join Companies with Leadership Development Programs

Look for companies that emphasize internal growth and leadership development. Many organizations have structured career paths and offer leadership programs designed to cultivate future executives. These companies invest in high-potential employees by providing mentorship, specialized training, and opportunities to lead early on.

During the interview process, ask about promotion opportunities, mentorship programs, and internal leadership tracks. A company with a culture of internal promotion and employee development will give you a significant head start on your path to CFO.

Step 2: Build a Reputation for Financial Expertise and Leadership

As you progress in your career, reputation matters. It’s not just about performing well—it’s about being perceived as a leader and an expert in your field.

This means:

Proactively Solve Problems and Deliver Results

CFOs are expected to be problem solvers and strategic thinkers. To position yourself as a future CFO, you need to demonstrate your ability to identify and solve problems that impact the financial health of your organization. Whether optimizing financial processes, improving forecasting models, or identifying areas for cost reduction, taking the initiative to solve key problems will make you stand out.

Taking ownership of projects and ensuring they deliver measurable results is another critical step. CFOs are responsible for the company’s financial outcomes, and showing that you can lead initiatives that positively affect the bottom line will help build your credibility.

Share Your Wins and Quantify Your Impact

Don’t be shy about sharing your successes. Regularly communicate your achievements to supervisors and peers, using data to back up your results. For example, if you implemented a system that cut operational costs by 15%, make sure to share that data in team meetings or financial reports.

By continuously highlighting your impact, you’ll reinforce your reputation as someone who delivers results and can handle greater responsibilities.

Step 3: Cultivate Leadership Skills and Emotional Intelligence

CFOs aren’t just number crunchers—they’re leaders. Being technically proficient in finance is essential, but leading a team, influencing strategy, and communicating effectively with stakeholders are just as important.

Develop Emotional Intelligence (EQ)

Emotional intelligence is critical for CFOs who must navigate complex team dynamics, lead under pressure, and communicate effectively with various stakeholders. EQ helps you manage stress, build stronger relationships with your team, and lead with empathy.

Focus on improving your self-awareness, empathy, and interpersonal communication skills. Consider attending workshops, reading books, or even working with a mentor to sharpen these abilities. The higher up you go in an organization, the more you’ll find that soft skills like emotional intelligence are just as important as technical expertise.

Strengthen Team Management and Collaboration Skills

Managing a team effectively is a core part of the CFO role. Even before you reach the C-suite, look for opportunities to lead teams, especially those that are cross-functional. This will give you experience managing diverse groups and understanding how different departments work together to achieve business goals.

Good team management requires excellent communication, an ability to delegate tasks effectively, and conflict-resolution skills. By honing these skills early in your career, you’ll be well-prepared for the leadership demands of the CFO position.

Step 4: Commit to Lifelong Learning and Professional Development

The financial world is always evolving. New regulations, technologies, and trends mean that even the most experienced professionals need to learn and adapt continuously. To stay competitive, you’ll need to commit to ongoing professional development.

Pursue Advanced Degrees and Certifications

While it’s possible to become a CFO without an advanced degree, pursuing higher education can give you a significant advantage. An MBA, a Master’s in Finance, or a CPA certification can provide you with deeper financial knowledge and a broader understanding of business strategy.

If a full degree program isn’t feasible, consider obtaining specialized certifications in financial management, risk analysis, or strategic planning. These credentials will set you apart and demonstrate your commitment to mastering your craft.

Stay Current on Industry Trends

CFOs are expected to stay ahead of the curve regarding financial and business trends. Attend industry conferences, read financial publications, and participate in webinars to stay informed about the latest developments in your field. Subscribe to industry newsletters and follow thought leaders in finance to ensure you’re always up to date with emerging best practices.

Step 5: Build a Personal Brand That Reflects Your Expertise

Your personal brand is an essential asset in your journey to the CFO role. In today’s digital world, how you present yourself online can significantly influence your career trajectory.

Craft a Strong Professional Narrative

Your brand should reflect your expertise, leadership potential, and impact on the organizations you’ve worked with. Develop a strong narrative that highlights your career progression, key achievements, and the value you bring to the table.

This narrative should be showcased in your resume, during interviews, and on professional platforms like LinkedIn. Regularly update your LinkedIn profile with career milestones, articles, or thought leadership pieces. This positions you as an expert in your field and keeps you top of mind for recruiters and executives.

Network with Industry Leaders

Building a network of trusted advisors and peers is another critical step in becoming a CFO. Attend industry events, join professional associations, and connect with financial executives who can mentor and guide you.

Identify mentors who have already reached the CFO level and can offer insights into navigating challenges and making strategic career decisions. Networking isn’t just about collecting contacts—it’s about building meaningful relationships that can help you grow and open doors to new opportunities.

Step 6: Take on High-Impact Financial Projects

As you move up the corporate ladder, the scope of your responsibilities should expand. CFOs oversee the financial strategy of an entire organization, so it’s important to gain experience with high-impact financial projects that influence the company’s bottom line.

Lead Projects that Impact the Financial Health of the Organization

Volunteer for projects that expose you to financial strategies, such as mergers and acquisitions, capital investments, or financial restructuring. These projects demonstrate your ability to think strategically and manage large-scale financial initiatives.

Leading high-impact projects will also give you visibility with other C-suite executives, which can help position you as a future leader.

Master Financial Forecasting and Risk Management

One of the key responsibilities of a CFO is financial forecasting and risk management. CFOs are expected to anticipate risks, develop mitigation strategies, and ensure that the company remains financially stable. Invest time in mastering financial modeling, long-term planning, and risk assessments.

The ability to forecast financial outcomes and manage risk is a critical skill for any CFO, and developing expertise in this area will help set you apart from other candidates.

Conclusion: Fast-Tracking Your Path to CFO Success

While becoming a CFO in five years is an ambitious goal, it’s entirely achievable with the right strategy and dedication. By carefully selecting roles that provide key financial and leadership experience, building a reputation for delivering results, and committing to continuous learning, you can accelerate your journey to the C-suite.

In addition to building a strong personal brand, networking with influential leaders, and taking on high-impact projects, focus on developing the leadership and emotional intelligence skills essential for any CFO. With a clear plan and determined effort, you’ll be well on your way to securing the coveted CFO position and driving the financial success of your organization.

Frequently Asked Questions: Mastering the Fast Track to CFO Success

Becoming a CFO in just five years may seem like a lofty goal, but it’s entirely within reach with a focused, strategic plan. One of the most common barriers to achieving such an accelerated timeline is a lack of clarity on what exactly is required. The path to the C-suite often feels riddled with uncertainties, from educational requirements to the soft skills that truly make or break a leader.

To clear the fog, we’ve compiled a list of frequently asked questions (FAQs) that cover the essential details, practical advice, and insider tips you need to fast-track your journey to the CFO position. 

Let’s unpack these essential questions that will help guide your path toward financial leadership:

1. How long does it typically take to become a CFO, and is it realistic to do it in five years?

Traditionally, professionals can spend anywhere between 10 and 20 years climbing the ranks to become a CFO. This timeline includes time spent mastering financial roles, developing leadership skills, and gaining enough experience to be trusted with a company’s financial strategy.

However, accelerating that timeline to five years is possible with deliberate focus, the right strategy, and key opportunities. The process is about more than simply putting in the hours—it’s about making strategic career moves that allow you to develop executive-level skills faster. By working in companies with strong leadership development programs, taking ownership of high-impact projects, and building a strong network, you can significantly shorten the typical timeline to reach the CFO role.

2. Is an MBA or other advanced degree a must-have for becoming a CFO?

While not every CFO holds an MBA or advanced degree, pursuing one can give you a significant edge. An MBA or a Master’s in Finance equips you with the business acumen, leadership skills, and network that are vital in climbing the corporate ladder. Many top-tier organizations prefer candidates with advanced degrees because they demonstrate a commitment to mastering both financial and business management.

If a full-time degree program doesn’t fit into your schedule, consider certifications like the Certified Public Accountant (CPA), Chartered Financial Analyst (CFA), or Certified Management Accountant (CMA). These programs can bolster your expertise in specific areas like financial analysis, management accounting, and corporate strategy, providing you with the credentials to stand out.

3. What leadership skills are critical for success as a CFO?

A successful CFO is not just a numbers expert but also an exceptional leader. Critical leadership skills include:

  • Emotional Intelligence (EQ): Understanding team dynamics, managing stress, and communicating effectively with various stakeholders—whether employees, investors, or board members—are essential. EQ is crucial in resolving conflicts and leading with empathy.
  • Strategic Thinking: CFOs are responsible for aligning financial decisions with broader business goals. Strategic thinking helps anticipate trends, manage risk, and capitalize on opportunities.
  • Team Management: A CFO often oversees entire finance departments and cross-functional teams. Strong delegation, conflict resolution, and communication skills are key to ensuring smooth operations.
  • Decision-Making: CFOs make decisions that can affect the entire company, from risk assessments to capital investments. A good CFO can make well-informed, data-driven decisions under pressure.

Building these skills through mentorship, real-world experience, and leadership training programs will prepare you for the complexities of the CFO role.

4. How can I gain executive-level experience early in my career?

Gaining executive-level experience early requires being proactive in your career development. Here’s how you can get ahead:

  • Lead High-Impact Projects: Volunteer for projects with direct implications on the company’s financial health, such as cost-saving initiatives, mergers and acquisitions, or financial restructuring. Leading these projects showcases your ability to handle large-scale financial responsibilities.
  • Work Cross-Functionally: Take on roles or projects that involve other departments such as operations, marketing, or IT. The CFO is often involved in strategic decision-making across the company, so a broad understanding of different functions will give you a holistic view of how to steer financial strategy.
  • Develop Expertise in Risk Management and Forecasting: The ability to anticipate financial risks and navigate them is a key CFO responsibility. Early experience in risk management, financial forecasting, and long-term planning will set you apart when vying for executive roles.

5. Do I need experience in multiple industries to become a CFO?

While it’s not strictly necessary to have experience in multiple industries, it can significantly enhance your qualifications. Exposure to different industries, particularly those with varying business models, can give you a broader understanding of how to manage different financial challenges and opportunities.

Industries like technology, healthcare, and financial services often offer faster career progression due to their rapid growth and constant evolution. These sectors require innovative financial leadership, making them ideal environments for professionals looking to gain the high-impact experience needed to become a CFO in a shorter timeframe.

Becoming a CFO in five years is an ambitious goal, but it’s entirely possible with a focused approach. By understanding the qualifications, skills, and strategies that set successful CFOs apart, you can position yourself for rapid advancement. From building a strong foundation in financial roles to developing leadership skills and cultivating a personal brand, the key is to take proactive steps every day toward your goal.

Networking, continuous learning, and gaining executive-level experience early will help fast-track your progress. Remember, the CFO role is about much more than just managing finances—it’s about leading teams, shaping strategy, and driving business success. Stay committed to your development, and you’ll be well on your way to reaching the CFO office in record time.

Is Your AI-Generated Marketing Content Legally Protected? Here’s What You Need to Know

Here’s What You Really Need To Know

AI is here. It’s fast, it’s prolific, and it’s rewriting the playbook for marketers…literally. From generating campaign copy to cranking out visuals in minutes, tools like ChatGPT, Midjourney, and Jasper are transforming how we create. But before you put all that AI-generated brilliance out into the market, there’s one big question that should be blinking red on your legal radar:

Is any of this actually protected under copyright law?

Recently, I hosted a webinar on “How to Use AI in Marketing Without Infringement.” If you missed it, here’s the Cliffs notes: the law hasn’t caught up to the tech, and that gap is exactly where risk lives. 

So, before you AI anymore of your valuable IP, let’s break down what every marketer needs to understand now, because this isn’t just about legal theory, but protecting your brand.

First, the bad news: the law doesn’t recognize AI as an author

According to U.S. copyright law, a work must have “human authorship” to qualify for protection. That means if your AI tool did all the heavy lifting and you simply hit “publish,” that content isn’t protected. At all.

This was made clear in the Thaler v. Perlmutter case, where a federal judge ruled that AI-generated art, without meaningful human input, cannot be copyrighted. And that legal interpretation is quickly gaining traction globally.

Bottom line: No human input, no protection. And if there’s no copyright protection, anyone can copy, adapt, or profit off your content and there’s very little you can do about it.

Why this matters: misunderstanding the rules can cost you

We’re not just talking about theoretical risks. AI-generated content can expose your organization to real legal consequences if:

  • It closely mimics someone else’s protected branding or design language
  • The tools you use were trained on copyrighted material, raising IP questions about the output
  • You can’t clearly document human involvement in the creative process

And here’s the kicker: if you don’t own the copyright, you also don’t own the exclusive rights. That means your competitors, or anyone, really, can reuse your AI-crafted language, ideas, tagline or visual without a second thought.

What you can do to protect your brand (and your content)

You don’t need to ban AI tools, but you do need to use them like the capable assistants they are, not as your final creative authority. I.e., treat AI as a co-author, not your ghostwriter. Here’s how to stay on the right side of the legal fine line:

1. Get hands-on and document human input
Save your prompts, edits, and decision logs. Think version control with an audit trail. This isn’t just for internal clarity, it’s your proof of authorship.

2. Vet your tools like you’d vet any vendor
Don’t assume “free” equals safe. Use AI platforms that are clear about their data sources and licensing terms. If the tool can’t say where its training data came from, think twice.

3. Build and enforce a real, strategic AI policy
Treat AI as you would any other legal & compliance process. Spell out which tools are approved, who’s reviewing text and visual outputs, and what the rules are for transparency and disclosure. Your policy should evolve as fast as the tech does, if not faster.

4. Label when needed: transparency builds trust
Especially in regulated industries, consider disclosing when content was AI-assisted. Your customers, and regulators will appreciate the honesty.

5. Loop in legal early…and often
Make legal and compliance part of the creative workflow. They can help vet tools, flag risks, and help craft a policy that actually works for your team, and your brand.

An AI-powered future is only powerful if it’s protected

Marketers love speed, and AI plays into that, seamlessly (if not flawlessly). But legal systems move a lot slower, and that lag creates a risk gap that leaves you vulnerable if you don’t plan for it.

So again, make AI your co-pilot, not your creator. Don’t just produce at scale, produce with purpose. Treat AI as your brainstorming buddy, keep humans in the loop, document their role, and you’ll create not just compelling content, but content you can defend. That’s how you build both impact and protection.

Need help setting up an AI policy or reviewing your content workflow for legal risks? Connect with me. 

AI FAQs: Navigating AI in Marketing? Your Top Legal Questions Answered

1. What are the 5 Legal Pitfalls to Avoid When Using AI in Your Marketing Strategy?

  1. Copyright Infringement
    • Using AI tools trained on copyrighted data can result in unintended reuse of protected works.
  2. Trademark Violations
    • AI-generated visuals or brand names might mimic existing logos or names, creating confusion and legal exposure.
  3. Lack of Human Authorship
    • Content generated entirely by AI may not qualify for copyright protection—leaving you vulnerable.
  4. Privacy Violations
    • Using personal data without consent in AI-generated campaigns can breach GDPR or CCPA regulations.
  5. Unclear Licensing from AI Vendors
    • Some AI tools don’t grant commercial usage rights. Using them without checking terms could nullify your rights to the content.

2. Why Does Human Involvement Matter?

Because the law says so. U.S. copyright law requires human creativity for legal protection. Courts have made it clear: if a machine created your content without meaningful human contribution, you cannot copyright it. With human input:

  • You establish ownership
  • You will ensure content aligns with brand standards
  • It will help you stay legally compliant

Think of AI as a tool, not an autonomous creator.

3. How Often Should You Audit Your AI-Generated Marketing Content?

It depends on your industry and content volume (and risk tolerance), but here’s a general guide:

  • High-risk industries (e.g. healthcare, finance): Weekly or ongoing reviews
  • Marketing & branding: Monthly audits to ensure brand consistency and compliance
  • General business content: Quarterly spot checks, plus biannual formal reviews

Bonus tip: Keep documentation for every review, version history, notes, and responsible reviewers. A paper trail can be your path to peace of mind.

4. What Should You Include in Your Company’s AI Marketing Policy?

At a minimum, your policy should cover:

  • Approved AI tools and use cases
  • Human review and approval requirements
  • Data privacy and compliance standards (GDPR, CCPA)
  • Licensing and attribution guidelines
  • Version tracking and content documentation practices
  • Legal team collaboration protocols

Pro tip: Host a team workshop to introduce and socialize the policy. It’s more effective than just emailing a PDF, and will likely encourage compliance.

5. Transparency in AI Marketing: Should You Disclose AI-Generated Content?

Yes! if you care about trust, authenticity, and future-proofing your brand.

While disclosure isn’t always legally required (yet), it:

  • Builds consumer trust
  • Demonstrates ethical responsibility
  • Prepares you for emerging regulations

Here are a few ways to disclose using AI:

  • Add a simple label (e.g., “AI-assisted”)
  • Include notes in your privacy or content policies
  • Be upfront in B2B collateral or investor-facing decks

The Evolution from Digital Transformation to Artificial Intelligence: Lessons from 25 Years on the Frontlines

Back in 1998, during the Silicon Valley internet boom, I witnessed firsthand how breakthrough technologies disrupted established norms, reshaped business models, and transformed our work lives. 

Those transformative years taught me one critical lesson: digital transformation—and today’s surge in artificial intelligence (AI)—is not just about new tools, but about reshaping human behavior.

And when it comes to AI specifically, this process becomes even more crucial, as the topic tends to evoke mixed feelings and a heightened sense of uncertainty.

Technology is About People, Not Just Tools

While digital transformation and AI promise streamlined processes and new possibilities, their real challenge lies in changing the way we work and think. 

Resistance is natural; even when change is necessary, people may cling to familiar habits or fear the unknown. 

The true art of transformation lies in guiding people through this shift with empathy, strategic planning, and a clear vision.

How to Successfully Guide Change

To navigate behavioral shifts and foster a thriving transformation, leaders should focus on three key pillars:

1. Remove Blockages and Simplify Change

Why It Matters: Obstacles—technical, logistical, or psychological—can stall progress and breed resistance.
How to Do It:

  • Identify and eliminate barriers to change.
  • Offer the right tools, simplify processes, and provide additional training.
  • Listen actively to your team’s concerns to uncover hidden challenges.

Example: When introducing AI, host interactive lunch-and-learn sessions. Explain what AI is, share real-world case studies, and invite questions. This inclusive approach helps build curiosity and eases anxiety, paving the way for smoother adoption.

2. Involve and Empower Your Team

Why It Matters: People embrace change when they feel they have a stake in it.
How to Do It:

  • Create opportunities for team members to co-create solutions.
  • Encourage employees to share ideas that improve processes.
  • Build a culture of collaboration where transformation is a collective achievement rather than a mandate.

Example: When developing an AI roadmap or proof of concept, involve everyone affected. Gather input on pain points and expectations, ensuring that the strategic plan aligns with both business goals and real-world challenges. This process builds trust and a strong sense of ownership.

3. Celebrate Success and Embrace Learning from Setbacks

Why It Matters: Recognizing achievements fuels motivation, while overemphasizing failures can stifle innovation.
How to Do It:

  • Publicly celebrate milestones and individual contributions.
  • Treat failures as learning opportunities, not setbacks.
  • Encourage an environment where experimentation is welcomed and safe.

Example: After implementing an AI-driven workflow, organize a team celebration and highlight key contributors. Emphasize the lessons learned from any missteps to reinforce a culture of continuous improvement.

Three Hidden Costs of Failing to Embrace Change

  1. Leaving People Behind

If we don’t invest in AI education, we risk creating a divide where only a few can leverage the new technology. The AI revolution is not just about algorithms—it’s about ensuring every team member has a seat at the table. Failing to do so can leave valuable talent feeling obsolete, eroding confidence, and deepening organizational divides.

  1. Fostering a Competitive Negative Culture

Without a collective, inclusive approach, AI initiatives can inadvertently foster a toxic, competitive culture. When only a few become the “go-to” AI experts, it creates an us-versus-them scenario. This division can fracture trust and diminish collaborative growth.

  1. Stifling Innovation and Creativity

Fear limits creativity. When employees are unsure of their roles in an AI-driven future, they default to safe, routine behaviors instead of taking risks. True innovation thrives in an environment of psychological safety—one where teams feel empowered to experiment and learn from failures.

Final Thoughts: Embracing the Human Side of Transformation

Change is as much an emotional and cultural journey as it is a technological one. Leaders who succeed in digital and AI transformation understand that the human element is paramount. 

By removing obstacles, fostering team ownership, and celebrating progress, we can turn resistance into resilience and hesitation into enthusiasm. 

This approach not only achieves business goals but also builds a stronger, more adaptable team ready to face future challenges.

Over the past 30 years, I’ve led over 10 market launches, spearheaded two major corporate transformations, and optimized countless marketing strategies—all with the goal of empowering people. Today, I guide executive teams in assessing business challenges and driving sustainable growth. Book a conversation with me.

FAQ: Digital Transformation & AI Adoption

Q: How does AI adoption differ from traditional digital transformation?
A: Digital transformation focuses on digital tools and processes, while AI adoption involves advanced, predictive, or generative technologies. Both require strong human-centric change management.

Q: What’s the biggest hurdle in AI rollouts?
A: The primary hurdle is behavioral resistance. Even the best AI tech fails if people aren’t prepared, trained, and motivated to use it.

Q: How often should we update our AI strategy?
 A: Review and refresh your strategy at least every 6–12 months, adapting to new AI capabilities and organizational feedback.

Q: What strategies can leaders use to overcome resistance to change?
A: Leaders are advised to remove obstacles, simplify processes, and actively listen to team concerns. By creating inclusive, interactive learning opportunities and involving teams in the transformation process, resistance can be transformed into enthusiasm and ownership.

Q. What are the risks of neglecting the human element in AI and digital transformations?
A. Failing to invest in educating and involving employees can lead to a divided culture where only a select few benefit from AI. This not only alienates valuable talent but also stifles innovation, creating a competitive environment that hampers collective growth.

The Science of Trust: How Brands Can Build Lasting Customer Loyalty

The Questions That Drive Trust

  1. Why do we instinctively trust certain people and organizations?
  2. How can brands earn the trust of customers they’ve never met?
  3. And what strategies can they use to turn that trust into lasting loyalty?

These questions captivate me. As a fractional Chief Marketing Officer with a deep passion for neuroscience and psychology, I find the dynamics of trust—especially in today’s digital age—both fascinating and complex.

The Trust Gap: Perception vs. Reality

The trust gap is real. According to  PCW, while 90% of executives believe their customers highly trust their companies, only 30% of consumers agree. That’s a staggering 60-percentage-point gap—a disconnect that highlights how unpredictable and elusive trust can be.

The Personal Nature of Trust

Trust is deeply personal. It’s shaped by a complex mix of internal beliefs and external influences.

Consider Apple’s TV series Franklin. In it, Edward Bancroft betrays Benjamin Franklin, yet Franklin defends their friendship to John Adams, focusing on their shared history and Bancroft’s likability. Despite the betrayal, Franklin values the deeper connection—an example of how trust can transcend logic and be rooted in emotional and instinctual ties.

This hidden layer of trust is what brands need to tap into. It goes beyond product features and benefits, living in the emotional and subconscious spaces where true loyalty is born.

The Three Pillars of Trust

At its core, trust is built at the intersection of:

  • Logic: Demonstrating competence and consistency.
  • Emotion: Building connection and empathy.
  • Instinct: Appealing to intuition and subconscious cues.

Brands that balance these pillars create a trust that feels authentic and lasting.

How Brands Can Build and Activate Trust

In this guide, we’ll dive into:

  • The Psychology of Trust: Why we trust certain people and brands.
  • Neuroscience Insights: How our brains process trust signals.
  • Evolutionary Roots: Understanding trust’s role in human survival.
  • Proven Strategies: How brands can cultivate trust and turn customers into loyal advocates.

👉 Click here to download the guide

A BRAND’S HOLY GRAIL – ebook Virginie Glaenzer

Connect with Virginie Glaenzer to explore how your brand and organization can increase customers’ trust.

 

Reducing Your Risk of Business Failure in 2025

As we step into 2025, it’s natural to focus on ambitious goals and growth strategies. 

However, my European background and six years as a Fractional CMO have taught me that I serve my clients best through honesty and direct feedback. This year, let’s take a moment to address the hidden risks that could threaten business success.

For leaders, minimizing the chances of failure is just as crucial as pursuing bold visions. 

Here are four key areas to remember and avoid:

Failure to Effectively Communicate the Vision and Mission

Your company’s vision and mission are the guiding stars that should align teams, inspire action, and shape decision-making. Yet, many businesses struggle when these core elements are unclear or not consistently reinforced.

Why it matters: Without a clear and shared understanding of the organization’s purpose, employees lack direction, and stakeholders lose confidence. This misalignment can erode trust, dilute efforts, and stall progress.

Solution: Leaders must communicate the vision and mission consistently and authentically. Integrate these principles into team meetings, strategic plans, and even casual conversations. When everyone—from executives to front-line employees—can articulate your mission, you’ve built a resilient foundation.

Zinier, led by CEO Prateek Chakravarty, a former client, is a Field Service Management SaaS that exemplifies well-defined departmental objectives aligned with the company’s overall goals, thoughtfully integrating insights from both sales and research. I had the opportunity to witness firsthand how they effectively communicate their vision and mission, ensuring clarity and alignment across the organization.

2. Overcrowding with Multiple Decision-Makers

Collaboration is valuable, but when too many decision-makers are involved, the result is confusion and inefficiency. Overcrowded leadership structures can create unclear roles, competing priorities, and slower responses to challenges.

Why it matters: When responsibilities blur, accountability diminishes, and execution falters. Decision-making becomes a bottleneck instead of a catalyst for progress.

Solution: You can simplify and clarify processes by clearly defining roles and responsibilities for decision-making. You should delegate authority when appropriate and ensure everyone understands their specific accountability. With streamlined governance, you’ll enable faster and more effective actions.

While working with another client, LARVOL, a Pharmaceutical SaaS company, I observed their CEO, Bruno Larvol, lead the launch of a new product offering with a strong focus on seamless interdepartmental communication. His approach resembled a growth hacking team, effectively integrating efforts across product, marketing, and data. Moreover, his process clearly defined roles and responsibilities, which enabled the team to take faster and more effective actions.

3. Forcing Employees Back to the Office

For many organizations, the debate around remote work continues. However, mandating a full return to the office without considering employee preferences often signals an inability to trust or delegate.

Don’t let your company fall into the “Coffee Badging” trap!

Why it matters: Forcing employees back can lead to resentment, reduced productivity, and higher turnover. Modern teams thrive on autonomy and flexibility, not rigid controls.

Solution: Instead of rigid mandates, focus on outcomes and empower employees to work in ways that optimize their performance. Build trust through delegation, invest in tools that support hybrid work models, and prioritize results over presenteeism.

4. Not Having an AI Project

AI is no longer a future technology; it’s a present-day necessity. Businesses that fail to adopt and leverage AI risk falling behind competitors who are reaping its benefits in efficiency, personalization, and decision-making.

Why it matters: Ignoring AI leaves businesses vulnerable to inefficiencies and lost opportunities. From automating routine tasks to enhancing customer experiences, AI can be a game-changer.

Solution: Start small. Identify areas where AI can deliver immediate value—streamlining operations, improving customer engagement, or analyzing data. Launching even a modest AI project can position your business as forward-thinking and innovative. 

At TechCXO, we have put a team together to help our clients embrace AI, from an introduction workshop, a team training to full AI organization transformation.

Book a time, and we’ll help you get started.

Looking Ahead

Unlike traditional executives, as Fractional Executives, we avoid drinking the Kool-Aid or playing politics. This unique positioning allows us to address critical risks head-on and share honest insights about customer needs and market opportunities.

2025 doesn’t have to focus solely on lofty goals. You can build a stronger, more resilient business by proactively addressing these critical risks I’ve listed.

Success isn’t just about hitting ambitious targets—it’s about creating the conditions to sustain those successes.

Let this year be about building a lasting legacy—by reducing risk, fortifying your organization against failure, and strengthening the foundation for long-term success.

Subscription Fatigue: How to Evolve Pricing from Product Transactions to Relationships

Lately, I’ve noticed something interesting during my client engagements: people are getting tired of subscription models. If you’re in the SaaS or media entertainment sector, you might be feeling it too—this growing “subscription fatigue” that’s making customers second-guess that monthly charge.

According to woop, approximately 39% of global subscribers plan to cancel at least one subscription within the next year, citing content issues (54%) and high costs (43%) as primary reasons

As a fractional CMO and CRO, I help organizations rethink their pricing models to address this very issue. The goal? Combat fatigue and rebuild trust with our customers. I’m seeing an exciting new era in pricing, one that’s all about relationships rather than just transactions. Digital transformation and changing customer expectations are pushing us to rethink the old ways.

The Evolution of Pricing Models

Historically, pricing was simple: supply, demand, a little markup, and done. But that world has changed. Today’s market is abundant and open, with digital access and global connectivity totally reshaping how we perceive value.

What was once a simple “cost-plus” transaction has grown into a variety of sophisticated models that respond to different needs, behaviors, and expectations.

For those of you in the C-suite—whether you’re a CEO, CMO, CRO, or VP of Marketing—understanding these shifts is critical for navigating your business through today’s complex market.

In this post, I’ll walk you through some of these modern pricing strategies, share real-world examples, and introduce some unconventional ideas that might just challenge how you think about pricing.

From Cost-Plus to Dynamic Relationships

Traditionally, pricing was straightforward: take the cost of producing a product, add a markup, and sell it. This “cost-plus” approach was reliable for physical products but often missed out on the customer connection—it was purely transactional.

However, as the competitive landscape evolved, more dynamic models started taking over. Think of it like a shift from a simple product purchase (like a limited-time clothing sale) to a relationship-based transaction, where the price can adapt to the customer’s needs, actions, or loyalty.

Two newer approaches embody this evolution:

  • Dynamic and Action-Based Pricing: Leveraging data, companies like Uber and Amazon dynamically adjust their prices based on real-time factors—such as demand surges or inventory levels—to optimize profits and align with customer behavior.
  • Licensing and Royalty Models: Content creators and technology firms, like software providers and entertainment companies, are moving towards royalty-based pricing. Used by companies like Substack, YouTube, Patreon and Apple Music, this model rewards stakeholders continuously, whether it’s for every stream of a song or per use of licensed software.

Tried & True Models Still in Play

Before jumping into the really out-there ideas, let’s review some existing pricing models that have worked well over the past decade.

1. Customer Usage and Value-Oriented Pricing Models

We find these pricing models align cost to answer perceived value, offering flexibility, reducing waste, and tailoring pricing to customer behavior, which fosters stronger relationships.

  • Usage-Based (Pay-As-You-Go) Pricing: Often seen in cloud computing (e.g., Amazon Web Services) and telecommunications, this model ensures customers only pay for what they use, providing flexibility and minimizing waste.
  • Freemium and Paywall Pricing: In the software and media industries, freemium models lure users in with basic free services (e.g., Spotify) while encouraging upgrades. Similarly, paywalls on news sites like The New York Times provide a taste of the content before requiring commitment.
  • Outcome-Based Pricing: Industries like legal services and advertising sometimes base fees on performance or specific outcomes. This results-oriented model aligns incentives for both the client and provider, creating a win-win situation when objectives are met.

2. Segmentation and Differentiation Pricing Models

Not all customers are the same, so why should pricing be? Segmentation pricing helps growing businesses understand customer needs and tailor pricing to capture more market segments and drive growth.

  • Tiered Pricing: SaaS companies, such as Slack or Salesforce, effectively use tiered pricing to cater to different customer segments, ranging from startups to large enterprises, each receiving features tailored to their specific needs.
  • Geographic and Regional Pricing: Netflix adjusts subscription fees across various countries to reflect purchasing power, cost structures, and local competition.
  • Loyalty Pricing: Airlines have mastered loyalty pricing, creating recurring customer engagement through miles programs that encourage repeat bookings and higher lifetime customer value.

3. Product and Service Bundling Models

Bundling can also help companies upsell by encouraging customers to opt for higher-value packages that include additional services or features.

  • Subscription-Based Pricing: Industries like streaming (Netflix) and software (Microsoft Office 365) use subscriptions to ensure predictable revenue while offering ongoing value to consumers. Microsoft relies on licensing agreements for its software offerings, such as Microsoft 365, enabling steady, predictable revenue through a subscription-based approach.
  • Bundling and Unbundling: Telecom companies often bundle internet, TV, and phone services to increase perceived value, while SaaS products might unbundle services to attract new users at a lower entry point.

4. Market Entry and Promotional Pricing

These pricing models can help companies quickly gain market share by offering competitive rates and incentives that attract a large number of customers in a short time.

  • Penetration Pricing: Spotify used low-cost introductory offers to quickly capture a large user base, relying on customers’ later transition to higher-paying plans for revenue growth.
  • Seasonal Pricing: Hotels and airlines use seasonal pricing strategies to adjust rates during holidays or peak travel seasons, optimizing both occupancy and profit margins. Uber employs action-based dynamic pricing to adjust ride costs during peak hours or bad weather, optimizing driver supply and passenger demand.

5. Psychological and Perception-Based Pricing

  • Psychological Pricing: The classic $9.99 vs. $10 psychological trick is alive and well across retail—a small adjustment in price often leads to outsized changes in consumer perception.

Finding New Pricing Ideas

Innovation in pricing is about more than optimizing what’s already there; it’s about creating new connections between cost, value, and trust.

I recently worked with a client in the energy sector, and we considered shifting from a pay-per-use model to a membership-based one, adding extra services to boost customer loyalty.

Let’s look at some bold new ideas for pricing—some are a bit unconventional, but innovation often starts with thinking outside the box.

1. Hybrid Pricing Models

  • Reverse Auctions for Services: Consulting firms could adopt reverse auctions, where service providers bid downwards to win projects, combining competitive pricing with quality assurance.
  • Community Investment Pricing: A model where part of the customer payment goes into a community fund, creating value beyond the product itself.

2. Dynamic Charity Contributions

  • Dynamic Charity Contributions: Fitness equipment companies could allow customers to choose part of their payment for charity, providing a deeper emotional connection.
  • Ad-Based Subsidized Pricing: Clothing retailers could offer discounts for customers who watch ads or share promotions on social media.

3. Behavior-Driven Pricing

  • Health-Driven Dynamic Pricing: Fitness centers could use wearable data to offer discounts for customers achieving health milestones, promoting healthier habits.
  • Behavior-Driven Discounts: Tech companies could reward customers with discounts for helping in product development or sharing feedback.

4. Social and Group Dynamics

  • Group Solidarity Pricing: A digital product where prices decrease as more people purchase, encouraging group buying and social sharing.
  • Time-Based Devaluation Pricing: A model where service prices decrease over time, rewarding those who are willing to wait while incentivizing early adoption.

5. Experience-Based Models

  • Emotional Pay-As-You-Feel: Entertainment venues could allow customers to set their price after the experience, aligning value with personal satisfaction.
  • Pay-Per-Mood Pricing: Aligns pricing with how much perceived value or comfort customers expect at different emotional states. A spa could base its pricing on customer mood—offering discounts to stressed customers while charging premiums to those already relaxed.
  • Karma-Based Pricing: Restaurants or cafes could implement pay-what-you-feel pricing, creating an emotional connection and community-driven value through customer fairness.

Steps to Reevaluate Your Pricing Strategy

If you’re considering shaking things up, here are a few practical steps:

  1. Understand Customer Behavior: Use analytics to figure out when and why customers buy. This might lead to dynamic pricing that fits fluctuating demand.
  2. Segment Your Market: Identify distinct groups and create tiered offerings that cater to different needs—perfect for SaaS and services.
  3. Focus on Relationships, Not Transactions: Moving away from one-off sales to something deeper. Subscriptions, royalties, and loyalty pricing can turn customers into long-term partners.

Final Thoughts

Ultimately, pricing is about trust, loyalty, and creating value—growth follows naturally.

Customers today have endless choices and are driving how they perceive value, making adaptability key. Remember, a brand is all about the experience it offers in the mind of the customer, and pricing should align with their beliefs and desires.

Using tools like AI and analytics, we can offer dynamic subscription pricing based on needs, seasons, or lifestyles. Whether you want to grow your market, sustain growth, or optimize profit, a fresh look at your pricing model might be the answer.

Start by experimenting—look at what’s working in other industries and focus on building relationships, not just transactions. And if you want to dive deeper into innovative pricing models, here are some excellent reads:

TechCXO’s Matt Oess Joins Krach Institute for Tech Diplomacy

The council’s goal is to accelerate the adoption of trusted technologies while preventing abuse from authoritarian regimes

ATLANTA, NOVEMBER 7, 2024 – TechCXO, a leading provider of on-demand executive talent to fast-growing companies, announced that Partner Matt Oess has been appointed to the Advisory Council of the Krach Institute for Tech Diplomacy at Purdue University. Its mission is to: “Bring together like-minded countries, companies, and civil society to operate by a shared set of trust principles. And, accelerate the innovation and adoption of trusted technologies to defeat one of the greatest global threats to freedom today: the weaponization of technology by authoritarian regimes.”

“As a proud Boilermaker, I’m honored to join this advisory council. The esteemed council members come from large, well-known global enterprises, institutes, and agencies. TechCXO’s participation and perspective are unique as we work with early-stage companies on the cutting edge of development in AI, Machine Learning, 5G/6G, cloud computing, and biotech,” Oess said. “I hope to help create a bridge between ground-level startups and influential decision-makers to ensure technology advances freedom.”

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Essential Tech Due Diligence Skills: Reasons to Avoid the ‘We’ve Got a Guy’ Shortcut

When it comes to technical due diligence, some investors opt for big-name firms, investing significant resources to ensure thorough tech evaluations for their deals. On the other end of the spectrum, some skip tech diligence altogether or rely on “a guy” in their network to handle this crucial task—often a portfolio company CTO or a connection who can manage it “on the side.” While this approach may have sufficed in the past when technology was simpler, today’s rapidly evolving and complex tech landscape demands much more. Effective technical due diligence now requires specialized expertise, diverse skill sets, and a high level of emotional and business intelligence. It’s unrealistic to expect that “a guy” can meet all these critical needs and mitigate the associated risks.

Breadth of skillsets

The level of technical complexity in modern applications is increasing exponentially. The days when a single resource could effectively assess and identify risks across all technical aspects of a business are gone. Think of 50 years ago when a good MD was all you needed as opposed to the myriad of specialists required today. Different technologies and development frameworks require specialized skills that are unrealistic for one person to possess. Similarly, technical due diligence now almost always includes Security diligence, and increasingly, we are seeing it expanded to include Product diligence. With these additional elements, you are certain to outstretch the capabilities of any single person. For a deeper dive into the process, the full scope of what’s involved, and checklists that highlight just how many factors need to be considered, our Benefits, Process, & How-To Checklist blog post lays out the complexity in stark detail.

The importance of emotional intelligence

Another fallacy of the “we’ve got a guy” approach is that because someone is technical and understands code, they can perform this diligence. There is far more to conducting great tech diligence than just the technical part of digging into source code and evaluating architecture. Knowing the right questions to ask and, more importantly, knowing HOW to ask the questions makes a major difference in the quality of the diligence. Building trust with the team from the target company is essential. Tech leaders in target companies are commonly resistant to the process. This is understandable as the diligence process has the potential to put them and the application they have built in a negative light. As such, very guarded answers can be provided, making quality diligence impossible. So, excellent emotional intelligence is required to break through that resistance and get the transparency and cooperation needed to identify risk successfully.

Just pulling in a resource from your network to perform tech diligence increases the odds of ending up with someone who does not possess the critical emotional intelligence to elicit the most transparency from a target team.

The importance of business intelligence

Another critical aspect of effective Technical Due Diligence is the ability to discern which technical issues are relevant to the deal. Furthermore, explaining those technical problems in clear, non-technical business terms is essential. Both of these considerations highlight the importance of having a technical due diligence partner with not only great technical skills but strong business skills as well. This is a rare mix in the technology world. Using “a guy” who is not deeply experienced in tech diligence introduces the unnecessary risk that the diligence may raise issues that are not critical to the deal. Or even worse, it doesn’t raise issues because they are not technically critical but happen to be very important to the deal from a business perspective.

An experienced diligence resource would know the difference and could save a lot of time and risk by highlighting the issues that might otherwise be missed.

Helping after the close

In many cases, meaningful issues identified in technical due diligence must be remediated after closing. The new portfolio company often doesn’t have the expertise or bandwidth to address these issues on its own. An important consideration in selecting a technical diligence partner is to choose one with the breadth of expertise and the capacity to help remediate all problem areas identified post-close. It is rarely the case that “a guy” has either.

Summary

In summary, technical due diligence requires specialized skills beyond just the capabilities of the particular field. Investors intuitively appreciate that distinction for areas they are familiar with, such as sales, finance, and marketing. However, technical expertise is typically more of a blind spot for this group, so the assumption is pervasive that anyone technical can do tech diligence. Performing tech diligence with a resource who does not possess the variety of skills outlined here introduces a real risk that issues material to the deal may not be brought to light until after the close. They may be a “friend of the firm” and may have even been a great CTO for a prior or current portfolio company. However, great technical skills do not equate to great technical diligence skills, and assuming they do can lead to oversights and misjudgments that introduce risk. To ensure a thorough and accurate evaluation, ultimately safeguarding the investment and moving the deal forward with confidence, it is important to engage professionals with a proven track record in technical due diligence.

You very well may “have a guy” that you like, but a team— with skills, expertise, and experience in technical diligence— is the best way to ensure you uncover the risks that could impact the deal.

For more information on TechCXO’s Technical Diligence services, please visit https://www.techcxo.com/product-technology/investor-transaction-services/technical-due-diligence/

Technical Due Diligence: Benefits, Process, & How-to Checklist

Relying on strong founders isn’t enough. Today’s investment landscape demands deep technical insight to reduce risk, uncover hidden issues, and build post-close value. In this guide, we explore why technical due diligence is a non-negotiable process for investors and acquirers seeking to make informed decisions.

The Case for Technical Due Diligence: An Essential Step in Investment and M&A

When investors are considering acquiring a company, they often say, “We bet on the founders.” This sentiment becomes a rationale for skipping technical due diligence — an in-depth assessment of the target company’s technology strategy, assets, systems, security, and processes to identify potential risks, weaknesses, and opportunities for improvement.

Instead, their approach is rooted in faith in the leadership’s track record, implying that a strong team guarantees a well-built, secure, and scalable product—a seemingly logical approach. While this perspective was perhaps reasonable in the past, the dynamic shifts in technology and cyber-security and the technical sophistication of all the stakeholders involved in deals today highlight the need for a more disciplined approach to technical due diligence.

What’s Changed?

The technological landscape is no longer what it was in the past; it’s changing at an unprecedented pace, supercharged by near-daily advancements in areas like artificial intelligence (AI). These changes aren’t just technical — they reshape entire industries, altering the stakes for investors and companies alike. This heightened pace of innovation demands a deeper understanding of a company’s technical infrastructure and leadership, not just to assess its current state but to identify opportunities for the company to uniquely position itself in the market through technology.

Uncovering Critical Issues

The technological landscape is no longer what it was in the past; it’s changing at an unprecedented pace, supercharged by near-daily advancements in areas like artificial intelligence (AI). These changes aren’t just technical — they reshape entire industries, altering the stakes for investors and companies alike. This heightened pace of innovation demands a deeper understanding of a company’s technical infrastructure and leadership, not just to assess its current state but to identify opportunities for the company to uniquely position itself in the market through technology.

Moreover, cybersecurity has transformed from a niche concern into a central element of investment decisions. What used to be important only in sectors dealing with payments, healthcare, or sensitive personal information (PHI/PII data) is now crucial across all industries. Technically sophisticated investors increasingly prioritize security measures to safeguard their investments, often making cyber insurance a prerequisite — something that is impossible if the company doesn’t at least have the basic security measures in place. This highlights the need for intelligent and comprehensive identification and addressing of all technology risks at the start of any deal.

Uncovering Critical Issues

Another common excuse, particularly in M&A, is the belief that “we will figure it out” after the deal closes. However, without rigorous technical due diligence, there’s a risk of overlooking critical issues that could significantly impact the success of the deal and can lead to significant financial losses or even failure to scale as expected post-close. While some may attempt to save costs by skipping this step or relying on internal technical resources, proper technical due diligence requires objectivity, expertise, and experience. Through hundreds of projects, we’ve identified core architectural issues and lax security measures that can pose substantial risks and outsize costs to the business, even in companies with strong leadership. We know what issues to look for, where to find them, and how to analyze and clarify them for all stakeholders involved.

The Overlooked Benefit: Technical Roadmap

Tech diligence should be viewed as more than just a checkbox item. This thinking misses out on one of the major benefits of tech diligence—creating a technical roadmap to success post-close. This process facilitates “forced introspection,” allowing the business to get an objective assessment of its technical strengths and weaknesses. This almost certainly wouldn’t happen without the forcing function of an imminent potential transaction.

Often, we uncover hidden and unexpected opportunities for improvement that can enhance scalability and security for investors. Moreover, the specific recommendations from tech diligence provide a framework for holding the technology team accountable and driving meaningful progress. These are invaluable resources for stakeholders and are best identified during the technical due diligence phase.

Keys for Conducting a Successful Technical Due Diligence

Several factors impact the effectiveness of technical due diligence that are commonly left to chance.

Areas to include

While each deal is different, multiple areas within the target company’s product development and technology functions should be considered for inclusion in the project. Not all of these will be appropriate for every deal, depending on the company’s stage, product offerings involved, and any previously completed diligence efforts. However, each should be considered and only excluded when there is a clear reason to do so.

  • Product – Is the product complete? Is the roadmap well-defined, and does the go-to-market strategy make sense? What does the competitive landscape look like?l
  • Architecture—Is the application built securely? Is it maintainable? Is it scalable? Will a major additional investment be required in the near future to enable it to support the planned sales goals?
  • Deployment—Is the hosting environment (e.g., AWS, Azure, etc…) both secure and scalable? Are there opportunities to significantly reduce hosting costs?
  • Team – Can the current team support the business in achieving the projected growth? Are there key missing roles, and can the leader lead the team to the next level?
  • Process – Are there solid product development and support processes in place that will facilitate growth and a consistently high level of quality in the application?
  • AI – Is there a clearly defined artificial intelligence (AI) strategy that aligns with the company’s broader business goals? Are teams using current, AI-enabled tools and workflows to accelerate product development? And most importantly, do the products themselves offer meaningful AI-driven capabilities that matter to customers—not just buzzword compliance?
  • IT—Is the business’s IT infrastructure adequate for its current state, and where it needs to scale? Are employees able to work effectively, and is business continuity properly considered?
  • Security—Does the business have solid security policies and practices in place? Do they have the proper compliance (e.g., HIPAA, SOC2, HITRUST, etc…) for their industry?

When to Perform It

Technical Due Diligence is typically performed toward the end of the overall diligence effort. This is understandable, given the many other reasons a deal might not work out and the desire not to spend the money or effort here until there is reasonable certainty that the deal will go through. However, a few things can be done earlier in the overall diligence process to help ensure more effective technical due diligence.

First, set the expectation that access to the source code will be required if a software application (either SaaS or tech-enabled service) is to be assessed. It is common for the leadership of the target company to either have concerns about sharing access to source code or try to avoid it because of concerns about what might be found. When these concerns come out towards the end of diligence, when technical due diligence begins, there is seldom the appetite for the acquirer/investor to push for it in fear of derailing or slowing down a deal at this late stage. The result is less thorough technical diligence and an increased chance of serious issues hidden in the code that won’t be discovered. Setting the expectation early that source code access will be required will help to avoid this late-stage reluctance to push for it.

Secondly, the expectation of who will be required to participate should be set. Frequently, when technical due diligence starts, it is discovered that the technical resources needed are unaware of the transaction and cannot be included, resulting in a less-than-optimal assessment. In some cases, this will be unavoidable; however, setting expectations early in the diligence process that technical participation will be needed can give the business a chance to consider including the necessary people.

Finally, a good amount of information needs to be collected before technical due diligence to facilitate the process (see our Technical Due Diligence Checklist). While it doesn’t make sense to have the technical team start on that too early for the reasons mentioned above, beginning the process a week or two ahead of the start of technical due diligence is helpful. This gives the target company time to gather the necessary information, allowing the diligence team to hit the ground running!

Execution of the Technical Due Diligence Process

Multiple steps should be understood and followed with each deal to ensure a proper technical due diligence effort. They are as follows:

  1. Investor Kickoff – The technical due diligence partner must have a solid understanding of the business you are looking to invest in and your goals for the company after closing. The technical requirements and skill sets needed for a business to grow 10x and launch multiple complementary products are very different from those of a company where the product is very mature, and there is no need to do major things with it. The scope of the project is also discussed here so the diligence provider knows what areas to focus on and any special considerations to take into account, such as specific concerns to look into or areas that may not require as much focus as others,
  2. Information Collection – Gathering any information the company has documented related to the roadmap, process, team structure, architecture standards, security policies, etc… is very helpful in getting a full picture of where things stand ahead of direct meetings with the team. Getting this information to the diligence team up front goes a long way towards reducing the time required for the product development team to meet with the diligence team. (See the link above for a comprehensive checklist of questions and material to request.)
  3. Company Kickoff – A kickoff call among the investors, technical due diligence team, and key product/technical leaders in the target company is crucial in getting everyone aligned on the technical due diligence process and their roles and addressing any team questions. As part of this meeting, the technical diligence provider will establish key contact points for the various workstreams, get key follow-up meetings lined up, and provide an overview of the process.
  4. Function-Specific and Individual Meetings – Following the Company Kickoff, several “function-specific” meetings (e.g., Product, Architecture, Team, Process, Security, etc…) are typically scheduled. In some instances, when deeper insights are needed around the team and leadership, multiple individual contributor meetings will likely be held.
  5. Assessment – Equipped with all the information provided and notes captured from the meetings above, the team can now dig in to do their actual assessment. This includes reviewing documents, reviewing notes, digging into the source code, looking through the team’s project management tools, inspecting their cloud hosting environments, etc…
  6. Report Compilation – The technical due diligence team will write up their findings and recommendations in a report using the insights gained above. This must include both the technical detail the team will need to remediate issues found but also a clear and easy-to-understand “snapshot” for the investor outlining where things stand, what issues they need to pay attention to, and whether there is an excessive risk to the deal based on the findings.
  7. Stakeholder Review – The technical due diligence team will walk the investors and other stakeholders through the report, outlining the important things the investor needs to know, why they are important, and what the company needs to do to rectify each issue.
  8. Action Plan Review With The Company – A technical due diligence effort and resulting findings should not just be used as a go/no-go decision point for investment. For most deals, many other issues are identified that don’t raise up to the level of interest for what the investor is looking for. Having the provider walk the company through the findings leverages the effort spent on technical due diligence to help update the company’s technical roadmap. This process can highlight valuable recommendations that may not have previously been on their radar.

Selecting the Right Technical Due Diligence Partner

The final step to ensure a successful technical due diligence project is to select the right partner – there are several considerations here:

Using an individual versus a firm specializing in technical due diligence – while it is common to use an individual who is either part of the firm or a friend of the firm (possibly a CTO from another portfolio company), this approach is limiting. Looking across the scope of what should be covered (see above), one person can’t have the requisite expertise across all those areas to be fully effective. Furthermore, effective technical due diligence is just as much an art as a science, requiring emotional and business skills that go beyond the capabilities of many technical professionals. Using resources not experienced in technical diligence will limit the value obtained in the effort.

Capacity and Bandwidth—It is important to work with a provider who can take projects on quickly, complete them quickly, and have expert resources across all the areas mentioned above, including multiple architect resources with expertise across a wide variety of common tech stacks.

Clear and Actionable Report—Spotting technical issues is not the hard part of technical diligence. The best providers stand out by having the discernment to understand which issues are important to the deal and being able to present those clearly and concisely to non-technical stakeholders. Ask to see examples of previous reports.

Ongoing Support—While it is good to be aware of the key technical issues identified in diligence, it is common for the company not to have the expertise or bandwidth to remediate those issues. Work with a partner who can provide expert, ongoing fractional support (CPO, CTO, and/or CISO) and be available to jump in to help clean things up after the close.

Conclusion

Technical due diligence is indispensable in today’s technology-driven investment landscape. To maximize long-term success, investors and acquirers must move beyond founder reputation and ensure rigorous technical assessment before closing any deal.

For more information on TechCXO’s technical due diligence services, visit https://www.techcxo.com/product-technology/investor-transaction-services/technical-due-diligence/ or contact me at greg.smith@techcxo.com.

FAQs

Q: What is technical due diligence?

A: Technical due diligence is the evaluation of the technical aspects of a business, typically within the context of an acquisition or an investment. These technical aspects include product viability, application architecture, cloud infrastructure, product and technology teams and processes, IT infrastructure, and security posture. Outside experts in the areas outlined perform an audit to compare the target company’s people, process, and technology against industry best practices, seeking to identify any risks stakeholders need to be aware of before proceeding with a transaction.

Q: What are the benefits of technical due diligence?

A: The benefits of technical due diligence include visibility into a company’s technical risks that can negatively impact scalability and/or require significant unplanned additional investment to remedy. In addition, proper technical due diligence will leave the target company with a technical roadmap outlining the items that must be addressed to ensure scalability and continued customer retention.

Q: How much does technical due diligence cost?

A: The cost of technical due diligence can vary widely depending on the scope of the assessment, the size of the target company, and the number and size of the applications the company has developed. As a high-level guideline, below are estimates for the various stages of investment:

Seed: $10k – $15k

Early: $20k – $35k

Growth: $40k – $55k

Mezzanine: $60k – $80k+

Q: How long does technical due diligence take?

A: The duration of a technical due diligence project depends on several factors, including the scope of the assessment, the size of the target company, the responsiveness of the company, and the number and size of the applications the company has developed. As a general guideline, below are the typical durations for the various stages of investment:

Seed: 2-3 weeks

Early: 2-3 weeks

Growth: 3-4 weeks

Mezzanine: 4-6+ weeks

Q: Is technical due diligence required?

A: As the pace of technical advancements increases and business reliance on technology increases, ensuring that a business’s technical capabilities are in good shape is required. It is critical to understand any inherent technology risks and to get a clear picture of any significant unplanned costs that would only come to light when the business tries to scale. Additionally, unlike in the past, cybersecurity is now a significant consideration in technical due diligence for all types of businesses, not just product development companies. Skipping technical due diligence significantly increases the risk profile of potential investments.

Q: Can I use a technical person I know (perhaps a CTO from one of our portfolio companies) to perform technical due diligence?

A: You can; however, there are several reasons this will limit the value that you receive from the technical due diligence. First of all, the breadth of the technology landscape is expansive (and growing) – to think one person can adequately cover the different aspects of technical diligence and the multitude of tech stacks is unrealistic. Secondly, quality technical due diligence is something that only some technical people can do well since there is just as much art to it as science. Finally, an individual will not likely have a structured report that contains not just the technical details but also the discernment from an investment perspective of what the investor needs to pay attention to. For a more in-depth discussion on this topic, see the article ‘Why ‘We’ve Got a Guy’ Falls Short in Today’s Complex Technical Due Diligence.’

Q: Why can’t we just “bet on the leadership team”?

A: Some firms don’t perform technical due diligence as they are betting on the leadership team. The logic is that if the leadership team is strong and there is a product with happy customers, then any technical issues that come to light later can be figured out. The problem with this logic is that it is very common for companies to have an application in the field that is working well from a customer’s perspective but will not scale, requiring significant additional investment down the road. Similarly, there could be a tech leader in place who presents well, but when you dig in, is really not the right person to take the team to the next level. Having an objective and expert assessment removes the gaps that are left when you just “bet on the leadership team.”

TechCXO Returns to Inc 5000 List

TechCXO, the pioneer of on-demand executive leadership services, returns to the Inc. 5000 list of Fastest Growing Private Companies. The company has been on the list for 15 of the last 16 years.

ATLANTA, AUGUST 28, 2024 – In an outstanding affirmation of its enduring excellence and growth, TechCXO, the pioneer in providing on-demand executive leadership, proudly announced its return to the Inc. 5000 list of America’s fastest-growing private companies for 2024. TechCXO’s consistent presence on the Inc. 5000 list for 15 out of the last 16 years is a testament to its unwavering commitment to empowering clients and fueling their growth. The firm appears on other Inc. lists: #199 in Georgia, #500 in Business Products & Services, and #187 in Atlanta.

TechCXO was founded in 2003 on the premise that companies can benefit from having the best executive talent available to serve as their CFOs, CTOs, CSOs, CMOs, CROs, COOs, CHROs and other executives on a fractional, part-time, or project basis. Companies might not otherwise be able to access the talent and experience level of a TechCXO partner and teams due to cost or availability.

Kent Elmer, Managing Partner of TechCXO, expressed his enthusiasm for the company’s latest accomplishment, “Being recognized once again on the Inc. 5000 list is a testament to the hard work and dedication of our team to excellent client service. Over the past 20 years, we’ve been committed to changing the game in fractional executive leadership, and our repeated inclusion in the Inc. 5000 underscores our success in this arena.”

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Signs Your Business Needs a Chief Marketing Officer (CMO)

Signs Your Business Needs a Chief Marketing Officer

Most companies have a CEO — the person who drives the direction of the company and makes the important decisions. They also likely have a CFO, COO, CTO, and even possibly a Chief Product Officer or Chief Revenue Officer.

But what about Chief Marketing Officer? Many companies choose to go without one, full-time or fractionally, for a number of reasons.

First, marketing is a “fuzzier” function than, say, technology or finance. It’s a little harder to be specific about what a CMO does or adds. “If I have junior marketers doing work, what does a CMO add?” they may ask themselves. In addition, senior businesspeople often believe they know enough about marketing to do the work of oversight.

But the biggest reason companies go without a CMO is, they have gotten used to what it’s like without a true marketing leader. Like homeowners who forego rehabbing their house for so long that they stop noticing the peeling paint, leaky faucets, and outdated look and feel, these companies can’t seem to prioritize what real marketing can do for them.

So here are a few signs that your marketing may not be delivering enough value for your company — and that you might need some experienced marketing leadership to get you over the hump.

You’ve been saying, “We need a website update,” for so long you’ve lost count. Websites get old. However, there’s nothing more important for your business. And letting it molder is a sure sign you’ve lost the ability to recognize the business lost by giving prospects the wrong first impression about your company and its offering.

The marketing you do is a series of tactics and one-offs. No customer ever sees your strategy. So, at the end of the day, marketing is actually a series of activities and behaviors you perform in the world. However, your strategy is what helps connect your execution across time, channel, and customer. Without strategic leadership and the rigor that comes from it, you may be pushing out mere transactional messaging, transitory promotions, and random product news.

And because no one has built a holistic plan, nothing is adding up over time in the customer’s mind. As I’ve written here before, great marketing is a “system,” working together as “connective tissue” to add value to an organization.

Your brand’s story is all about what you do, but not why. A clear purpose is a sign of a strong strategy – and it helps frame your narrative around the value you provide, vs. the attributes of your products and services.

Buyers buy solutions that promise to solve their problems and challenges; product attributes are the reasons to believe your promises, not the main message you tell.

You aren’t obsessed with your customer. When marketing is strategically led, it is always developed in the service of its customers. But without a CMO driving it, it’s likely that your company’s efforts are focused on “push-based” marketing, vs. insight-based marketing built around customer need.

Every good marketer at your company leaves. The thing about good marketers is that they love marketing. They want to do strategic, interesting, big things. Without a leader in marketing, their work instead ends up being completing a long to-do list, spinning plates, and working on putting out the latest fire. Good marketers don’t feel fulfilled by this type of work.

No one is setting objectives, developing goals, or measuring your results. When marketing is focused on today’s fire drill, it’s likely there’s no long-range planning. And, importantly, you’re more than likely not tracking, or optimizing your efforts on an ongoing basis.

A CMO — full-time or fractional — may seem like an indulgence or luxury, especially for an early-stage or startup company. But if you know how to spot the signs, you’ll realize that without one, your marketing is likely to not leave a mark at all.

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The Start-Up’s Guide to Extending Your Cash Runway

If it’s been a while since you raised funds for your start-up, and your cash runway is starting to resemble your personal bank account – a bit thin — you’re not alone. Investors are taking longer than ever to make decisions, particularly on new companies, and the fundraising process itself can now stretch six-to-twelve months or more from first meeting to close. If you’re trying to retain your team and make it to that next inflection point, here are some practical ideas to extend your runway and avoid finding yourself negotiating from a position of desperation.

One critical shift from even two years ago: 12 months of runway is no longer the safety threshold it once was. Today, seed-stage companies should target 18 months at close, and stronger companies are aiming for 24. The math is simple: if a raise takes at least six months, you need to start with at least twelve months left just to avoid running out of runway mid-process. So plan accordingly.

Control the Outflows

You should have a strict policy on who spends what, with sign-offs from your CEO or CFO. Travel, entertainment, and outside consulting are the “canaries in the coal mine,” i.e., leading indicators for how well you are managing spend. You should know where every dollar is going before it is committed.

But cash management today goes beyond line-item cuts. You should build scenario plans: a base case, a downside case, and, for example, a “what if the raise takes six months” case. The goal is visibility into your cash burn well before things get tight so you don’t have to scramble to cut once the warning lights come on.

Two categories deserve special attention that didn’t really exist as line items two years ago, at least not commonly: cloud infrastructure and AI tooling. These now represent a meaningful share of burn at many early-stage companies, and they can scale quietly and quickly under the radar. They should be audited regularly.

Plan Ahead. Much Further Ahead.

If you only have three months of cash left, it is too late to make meaningful cuts. If you have to reduce your team, the savings compound with every month you implement them earlier. The same principle applies to fundraising: starting your next raise with nine or more months of runway gives you leverage; starting with three gives it all to the investors.

This is a different posture than the advice common just a few years ago. In the current environment, investors are concentrating capital into fewer companies with stronger fundamentals, and they’re taking their time. It’s important to build your plan around that reality.

When it Comes to Revenue, Quality Also Matters

If your business generates revenue, the metrics investors have increasingly focused on in tighter fundraising environments are gross margin, net revenue retention, churn rate, and how quickly you collect. Top-line growth still matters, but burn efficiency and retention metrics have become the primary lens in investor conversations over the past 18 months.

Practically speaking, this means pricing discipline, early renewal conversations with your best customers, faster invoicing and collections, and prioritization of the product features that retain customers versus those that acquire new ones. These levers improve your unit economics and your investor story simultaneously.

Expand Your Fundraising Toolkit

VC-led equity rounds are still the gold standard for many growth-stage companies, but they’re not the only tool. And in a slower market, they shouldn’t be your only option. SAFEs (Simple Agreement for Future Equity) and convertible notes remain useful for bridge rounds. They avoid the difficult negotiations of a priced round and defer valuation questions to a later date, while offering incentives like interest and discounts to participants who take the early risk.

Beyond equity, consider:

  • Venture debt: Available to companies with recurring revenue and existing institutional investors, often used to extend runway between equity rounds without additional dilution.
  • Revenue-based financing: Repaid as a percentage of monthly revenue, useful for companies with predictable top lines.
  • Customer prepayments: Annual contracts paid upfront are an underused runway extender. Many customers will take a modest discount for the predictability of paying annually.
  • Government grants and mission-driven foundation funding: Non-dilutive and worth pursuing for companies in climate, health, defense, or other priority sectors.

Milestones

You need to clearly understand your milestones, key inflection points, because those are the triggers for raising capital at increasing valuations. Your cash runway needs to get you not only to the next milestone, but also leave you three to six months on the other side to review your data and pitch the accomplishment to investors.

In a 24-month runway model, this means thinking at least two milestones ahead. What does the data look like at month 12, and what does it need to look like at month 18 to support a meaningful raise? Build the model now, because you’re going to need it.

Pass the Hat

Many VCs are rightfully focused on their existing portfolios, and keeping those companies healthy is their primary objective. New investment activity has pulled back, and portfolios are being triaged. Your current investors are the best and most immediate source for emergency bridge funding, but they will want assurances that the bridge leads somewhere — a meaningful milestone, a credible path to the next raise, and not off a cliff. 

Come to that conversation with a clear plan, not just a need. Show them the milestone, the timeline, and the model. Investors who have already bet on you are far more likely to double down when you demonstrate you’ve thought it all the way through.

These difficult market cycles are just that – cyclical. With advanced planning, honest revenue discipline, and by using all the tools at your disposal, you should be able to position yourself for the next upswing.

FAQ

Frequently Asked
Questions

Common questions about managing startup burn rate, extending cash runway, and navigating funding challenges.

  • Start-ups should implement a strict spending policy requiring formal sign-offs from the CEO or CFO for all expenditures. Monitoring expenses like travel and consulting acts as a leading indicator for cash management. Knowing where every dollar is committed helps maintain financial control during periods of limited capital availability.

  • Founders learn how to extend a startup cash runway by managing capital strategically and reaching inflection points through disciplined spending. This requires proactive planning, utilizing alternative funding mechanisms like SAFEs or convertible notes, and aligning remaining cash with specific strategic milestones to demonstrate value to potential future investors.

  • SAFEs and convertible notes are alternative fundraising mechanisms that avoid the difficult negotiations associated with priced equity rounds. These instruments defer valuation decisions to a later date while offering incentives like interest and discounts to participants. They provide a flexible way to bring in precious capital during challenging market cycles.

  • Existing venture capital firms are often the most immediate source for emergency funding during market downturns. VCs prioritize supporting their current portfolio companies to keep them healthy. Investors usually require assurances that the bridge funding will lead to a meaningful milestone where the company can raise additional capital.

TechCXO Reports Full-Year Revenue Growth for 2023; 20th Straight Year of Top-Line Growth

ATLANTA, MARCH 12, 2024 – TechCXO, a pioneer in providing industry-relevant, on-demand executives delivering fractional and interim professional services, reported an increase in annual service fees in 2023 over 2022 to $56 million. TechCXO has increased revenue every year since its inception in 2003.

“TechCXO is in the strongest position in our history. We now have more than 120 partners – the most ever. Our partners love our collegial environment and how our model enables them to impact their clients directly and positively,” said J. Kent Elmer, TechCXO’s Managing Partner.

“Today, we’re seeing staffing and search companies, consultants, and business coaches claim to provide fractional executive services. That’s a testament to the success of our model,” Elmer added. “However, we know after two decades in business that the depth of partners’ expertise – every one of whom has been in multiple c-suite roles – and the team of professionals supporting them is a big differentiator.”

TechCXO was founded in 2003 on the premise that companies can benefit from having the best executive talent available and serving as their CFOs, CTOs, CSOs, CMOs, CROs, COOs, CHROs and other executives on a part-time or project basis. Companies might not otherwise be able to access the talent and experience level of a TechCXO partner and teams due to cost or availability.

Read Full Press Release

TechCXO has assisted thousands of start-up and growth-stage clients in its history. In addition to executive support, companies can also outsource their entire Finance, Sales & Marketing, IT, HR, and Operations functions to TechCXO for 50-75% less than it costs to staff full-time, loaded salaries. All TechCXO partners and staff are U.S. and U.K.-based.

About TechCXO

TechCXO is a pioneer in providing high potential companies across the country with industry-relevant interim and part-time executives on-demand. More than 5,000 companies, from startups to the Global 1000, have entrusted TechCXO to help with their critical functions by calling on TechCXO executives and teams as their CFOs, COOs, CSO, CTOs, CMOs, CHROs and other executive roles. TechCXO has appeared on the Inc. 500/5000 Fastest Growing Private list every year since 2008. For more information about the firm, please visit https://www.techcxo.com.

TechCXO’s Paul Sansone Named 2024 Georgia Titan 100

TechCXO’s Paul Sansone Named 2024 Georgia Titan 100


Atlanta, GA – TechCXO Atlanta Managing Partner, Paul Sansone, has been named a 2024 Titan 100 honoree, recognized as one of Georgia’s top CEOs and C-Level executives. The award, presented by Wipfli LLP, acknowledges executives with exceptional leadership, vision, passion, and influence who demonstrate expertise in their respective fields.

This year, hundreds of applicants vied to be of one of Georgia’s Titans of Industry. The 2024 Titan 100 honorees are chosen from various sectors, including technology, healthcare, banking/finance, construction/real estate, professional services, non-profit organizations, and other industries. The Titan 100 and their companies combined employ over 125,000 individuals and generate more than $30 billion in annual revenues.

“I’m honored and humbled to be recognized with this award. I’d like to congratulate all the recipients and applicants. It is such a blessing to be a part of the dynamic Atlanta business and technology community,” Sansone said. “TechCXO is so invested in the success of our clients, as they are the fuel that propels so much of our vibrant business community. I’m also grateful to work with so many wonderful colleagues, and I look forward to growing our local relationships in the years to come.”

Sansone has over 25 years of executive financial leadership experience in several industries, including e-commerce, enterprise broadband, hi-tech R&D and manufacturing, and non-profit sectors. He has an outstanding track record in establishing financial turnaround and restructurings for more established entities as well as implementing financial controls, processes, and organization for startups.

In his career, Paul has led financial, accounting, IT, real estate and facilities, human resources, legal, risk management, and regulatory compliance functions at both private and public organizations, domestically and internationally.  His prior roles include the CFO of Better World Books, an Atlanta-based e-commerce company and the CFO of The Boys & Girls Clubs of America, a $1.8B youth-serving federation.

Paul’s wealth of experience, coupled with his Certified Public Accountant and Certified Management Accountant qualifications, are essential assets that have enabled him to excel as a Chief Financial Officer.

TechCXO is a pioneer in providing fractional, part-time, and interim executive services, was founded in 2003 and has served over 7,000 clients, including some of Atlanta’s most valuable startups.

Congratulations to Paul Sansone and all 2024 Titan 100 honorees for their admirable achievements.

Read the full press release here.

Fractional Leadership is Hot in 2024… and That’s a Problem

Fractional Leadership is Hot… and that’s a problem

Single-shingle freelancers, staffing firms, and online marketplaces are trying to repackage themselves as Executives on Demand

How to Quickly Evaluate the Quality of Fractional Executive Firms

A business blog recently declared, “The Future is Fractional,” and fractional leadership is “in”. 

Startups and growth companies are embracing the concept of leveraging interim, part-time, and project-based leadership. Companies understand that they can upgrade the experience and talent level of key executives and functions while paying less than the loaded salary of a full-time executive. Better to have a fast-moving superstar as your CFO, CTO, COO, CMO, or CHRO for 10 or 20 hours per week, the thinking goes.

The problem is that with an uncertain business climate in 2024, the market is being flooded with freelancers, single-shingle consultants, staffing firms, struggling life coaches, and unemployed middle managers repackaging themselves as fractional executives. 

Here are four ways to quickly evaluate the quality of the fractional executive you’re considering for your business.

1. Define the “Executive” – A manager, director, or vice president is not a c-suite executive. The experience, decision-making, leadership, and skills of successfully guiding multiple organizations through big strategic decisions are very different than being a middle manager or lower-level executive. Unfortunately, a rash of corporate layoffs is pushing many directors and VP-level employees into the consulting ranks. Dig in on bio pages, LinkedIn profiles, and CVs to evaluate the depth of executive experience being presented.

Consultants are notorious for overstating their abilities. Many consultants at prestigious firms will present themselves as serving in an executive capacity; however, many of these people were plucked off the “MBA farm” without ever working inside companies, let alone leading in a C-suite capacity. TechCXO, for example, requires that every one of its partners has demonstrated success as a C-suite executive at multiple organizations. 

Freelancers who may be fine implementers might also present themselves as executives. While good fractional executives are “doers” and solid execution people, they also understand strategy and how initiatives fit into overall objectives, positioning in a competitive landscape, and support a unique value proposition. If you suspect your resource is a freelancer, ask a series of broad-based questions about customer segments, pricing strategies, and delivery channels. Then, listen closely. 

2. Define “Success” – Executives generally agree that the objective of a business is to eventually sell it. When evaluating a fractional executive, look to see if they were integral to a team that had several successful exits, IPOs, capital raises, and other M&A activities. 

The contributions of marketing, sales, product, tech, and HR people may be a bit harder to quantify than an exit, but seek out hard numbers for product launches, customer/revenue increases, profitability, and ways the entire organization was impacted by an executive’s efforts. 

Client quotes and testimonials are great, but they don’t necessarily communicate the scale of the work provided. Instead, look for true use cases and success stories with some level of complexity that took place over a number of quarters. Try to spot truly transformational work that scaled an organization, turned around a stubborn problem, or opened up new markets. Ask if you can speak directly with those clients, too. 

3. Define the “Team” – Small teams or single-shingle consultants may try to hide the scope of their organizations by not publishing team bios. Be on guard for that on the firm’s website. Some unscrupulous marketplace traders who talk about only 2% of their applicants make the cut, use fake bios to present a false sense of scale. They quite literally reuse photos and bios to present a “team.”

Check bios and the breadth of an organization. A level of scale demonstrates success. You don’t want to get caught in a situation where you are relying on a single company founder or one or two principals. They may be a startup organization themselves and all the dangers of time constraints, inadequate bandwidth, cash flow, or other disruptions.

Search and staffing firms may talk about their extensive “networks,” but they are in the business of plugging one or two resources into a hole. That approach does not constitute a team with a bench. Also, executive search and staffing firms are marketplace-brokered resources (found online) vs. referred, vetted, collaborative partner-quality professionals. Many specialty consulting firms are owned by exec search firms offering fractional and interim work, but do not have cross-discipline teams and resources. That can get expensive and blow up the cost-efficiencies you are anticipating.

For example, you don’t want a CFO-level executive handling your Accounts Receivables and Payables. You’re overpaying for that resource. You want to see a mix of talent at different levels and rates that might include a VP of Finance, Controller, Accounting Managers, and AR/AP coordinators.

Similarly, you wouldn’t want a CTO to be doing all your security, development, coding and project management work or your CHRO to directly do your recruiting and compliance work. A team with a blend of talent and rates is a good indicator of a well-established and high-functioning firm that can provide real-time and cost efficiencies.

4. Look for a Variety of Delivery Models – The classic monthly retainer arrangement or project-based pricing is familiar, but they also show a great deal of limitations. Freelancing, staffing, and firms with limited resources and delivery people are often locked into those models. 

A true executive on-demand firm has greater flexibility. It may discount rates up front for warrants and equity on the back end. It may offer a mentoring and coaching model. It may also offer specific, time-constrained training options. 

In a company’s lifecycle, they may need to push hard on recruiting talent but then may need to pivot to lead generation, sales and growth, or perhaps to raise capital. A multi-discipline executive on-demand firm can provide those resources and shift priorities and spending to the client’s needs. 

Fractional leadership may well be “in” for 2024, but for those firms who have been providing this unique model and approach, it’s been in style for decades.