I read an article recently where Marc Benioff, founder, chairman, and co-CEO of Salesforce, received the following advice from Steve Jobs that was essential to his success.
Steve Jobs said, “Marc, if you want to be a great CEO, be mindful and project the future.”
Over the last few years, we have seen an increase in businesses using outsourced executives to provide affordable and specialized work. I believe this trend will continue as I wrote in my article “How These Predictions Will Affect the Future.”
What is an Outsourced Executive?
Outsourced Executives are vital positions in Finance, IT, HR, and Marketing that are hired from an outside firm at a fraction of the cost instead of paying a traditional full-time employee. Can you imagine how much it would cost to have all these people full time on your staff? You would probably need to be over $20 million in revenue to afford this, and some of my colleagues believe this is even higher. Below are some key outsourced executives to consider.
CFO (Chief Financial Officer)
A CFO helps with financial reporting, analysis, forecasting, cash management, process improvement, and strategic planning. They help manage the accounting and finance team to provide leadership with the financial information to be more successful. To see more, check out the services we offer at Bender CFO Services.
CTO (Chief Technology Officer)
This firm handles hardware, disaster recovery, IT infrastructure, security, and phone systems. An example of a company that provides this type of service is Aeko Technologies. IT is changing all the time, so having a firm work for you is not only affordable but the most secure and up to date.
CMO (Chief Marketing Officer)
There are a large variety and types of firms and agencies that provide marketing and advertising services. Some agencies only work with larger organizations or only digital media. An example is January Digital, which works to solve business challenges through media, analytics, and strategic vision. Smaller organizations can also get this type of service. An agency such as CycleWerx Marketing provides marketing consulting, email marketing, content marketing, social media, and marketing technologies such as Customer Relationship Management Systems (CRM).
CHRO (Chief Human Resources Officer)
As businesses grow with more employees, human resource needs increase. Sometimes, you can use a PEO (Professional Employee Organization) to help with this. Once you go past 50 full-time employees, additional requirements such as insurance are necessary. Some other services HR firms provide are recruiting, hiring, employee onboarding, and performance appraisal coordination. They also help mitigate and handle legal issues, develop and maintain employee handbooks, policies, and procedures.
Why Outsource Instead of Hire?
Why spend the money on these full time hires when you don’t need to. Save the overhead expenses to invest in your employees that directly service customers or increase your profits.
It is typical for a smaller organization to hire these positions and pay less for someone who does not have adequate knowledge. For example, a CFO of a $5 million company may be doing some lower-level accounting and reporting and high-level strategic CFO work. The most affordable solution is to match the work with the correct level of expertise.
We have seen it so much easier to work from anywhere through cloud-based software, improved video conferencing, and task management and collaborative software. Over the next few years, we will see software and remote collaboration improve even more.
We must continue to innovate as technologies change so we can be ready to compete. I would suggest any company to keep as much of your profit as possible to compete by using outsourced executives for these essential services. Please do not avoid them altogether as they are vital for your success, but look for an affordable option to meet your needs.