What’s a fractional chief information officer, and why should you consider hiring one for your organization? Is it a wise investment as a medium or small business? How will a CIO benefit your company and help boost your bottom line? We’ll cover these questions and more in this complete guide.
What is a fractional chief information officer (CIO)?
A fractional chief information officer is an executive consultant who helps businesses align their information technology with their goals while staying on budget. They’re in charge of an organization’s information processing, which includes data center operations and system design and development.
Fractional CIOs may also go by various names, such as a company’s part-time chief information officer, a CIO on-demand, or a parachute CIO. Some fractional CIOs also work virtually – helping businesses with their processes, technology strategies, and technology roadmaps remotely.
Many smaller businesses can’t afford to bring on a full-time CIO, which is understandable. But they still need an expert available to make intelligent IT-related decisions for them to stay competitive. If they don’t, they could quickly land in murky waters.
A fractional CIO can come into play by offering strategic guidance and useful thought leadership if your business wishes to:
- Invest in new programs and software
- Stay on track to reach your projected ROI on technology investments
- Incorporate a disaster recovery plan for your data
How does a fractional CIO differ from a traditional CIO?
Unlike a traditional CIO, a fractional CIO works as a contractor rather than a member of an organization’s board of directors. They may still serve as an executive member of a company’s management team but often on a part-time basis.
Fractional CIOs tend to work for small and medium-sized businesses due to their flexibility and affordability. The primary benefit of partnering with a fractional CIO for many companies is gaining a high level of expertise without the overhead a traditional CIO demands.
A fractional CIO isn’t the same as IT support. CIOs focus on the big picture, while an IT support team covers more minor, day-to-day technology needs. IT support troubleshoots problems. CIOs make strategic decisions that impact your entire department and IT infrastructure.
Who should consider a fractional CIO?
Every day, we’re relying more and more on technology to keep our businesses on track. If you lack a dedicated IT expert or the IT bandwidth your company requires to remain competitive, you could quickly fall behind.
If you’re unsure of where business technology is moving, you likely need a strategic visionary on board. If you have budgetary constraints, a fractional chief information officer could be the perfect solution. Consider partnering with a part-time CIO if you fall into any of the following categories:
- You need to set up your technology systems for future success.
- You need an IT professional to offer critical industry insights, innovative ideas, and direction for your organization.
- Your business needs someone to ensure systems are functioning correctly and running optimally.
- Your company needs to hire an IT strategist for a fraction of the cost of a full-time CIO.
- You don’t need a full-time consultant but more of a troubleshooter and project-based consultant.
- You’re concerned about cybersecurity across your organization.
- You need a forward thinking data strategy and model.
Top Reasons to Work with a Fractional Chief Information Officer
1. Strategy
Your fractional CIO must be a forward-thinking strategist. They need to understand the ins and outs of the technology industry and where it’s heading to keep your business informed and on the cutting edge.
Your CIO should help you coordinate your IT systems with other areas of your organization, like marketing, sales, finance, and administration. Every department is intertwined and must work toward the same overarching organizational goals. A high-level CIO executive can provide a vision and offer the direction you need to execute projects effectively.
2. IT Department Expertise
A fractional CIO can fill IT skills gaps, which can otherwise be very costly for your organization. They can take some of the “weight” off the shoulders of your current IT team by handling tasks such as:
- IT management and leadership
- Defining and reporting key performance indicators (KPIs)
- Risk management
- IT security, governance, and compliance management
- Designing and optimizing processes
- Evaluating and budgeting for ROI
- Disaster recovery
- Business continuity planning
- Reviewing and negotiating contracts
3. Security
According to IBM’s 2021 Cost of a Data Breach Report, a data breach costs an average of $4.24 million – up 10% from 2020. In the U.S. specifically, it costs an average of $9.05 million. To improve your security posture, consider partnering with a fractional CIO to reduce cybercrime vulnerabilities throughout your organization. A CIO can help you identify threats quickly and build a cybersecurity program to combat them.
4. Budget
Unlike a traditional CIO, you only need to pay for a fractional CIO when you need them. You can scale their workload down or up to meet your current requirements. You can also work with CIOs virtually, increasing flexibility. Some CIOs charge hourly, while others may charge a flat monthly fee and offer services for a certain number of hours each month.
Ultimately, when you partner with an excellent fractional CIO, you’ll get the same level of expertise as a full-time CIO for a fraction of the cost.
Fractional CIO Services
A seasoned fractional CIO will help you select the right tools (and update them as needed), determine the ROI of your programs and tools, and ensure your systems and data are hosted on secure servers with a redundant backup strategy. They can also effectively equip your information security standards and policies to protect your business and clients.
Here’s an overview of specific services a fractional CIO can offer your business without increasing your team’s headcount.
- Data migration
- Technology audits and recommendations
- Information security
- Process optimization
- Contract and pricing negotiation
- Lifecycle management
- System consolidation
- Backend design and implementation
- Business continuity and disaster recovery planning
How to Find the Best Fractional CIO for Your Business
If you’re ready to partner with a fractional CIO for your organization, you want to find one that’s a good fit. They should be professional, experienced, trustworthy, forward-thinking, and flexible – that’s a given. But how do you find a CIO that also aligns with your business’s core values and shares a similar vision?
Before hiring a CIO, make sure you understand your current IT needs and challenges. That way, you know what to look for while researching and learning the approaches different experts take. Ensure your chosen partner has solid executive experience, a technology background, and strong communication skills.
Hire Port & Starboard for Fractional CIO Services
Port & Starboard offers fractional CIO services and guidance. Our goal is to help you decrease wasteful spending in your IT department and give you overall peace of mind regarding business technology. We offer a wide range of services under this umbrella, including data migration, information security, process optimization, and much more.
We can partner with you on an as-needed basis or commit to long-term projects to ensure the results you need. Take back control of your business technology. Contact us anytime for more information.
