What is a Fractional CTO? and Why Your Business Needs to Hire One

SEO
Web
Development
July 13, 2022

Have you ever asked yourself “what is a fractional CTO?” while reflecting on how to improve your business?

As you probably already know; running a successful business comes from hiring and coordinating the right people. The majority of successful businesses have their very own chief technology officer (CTO); who is able to keep track of technological innovations, as well as implement them to make the business more efficient and profitable.

However, sometimes a regular CTO is outside the budget of a small to medium business. That doesn’t mean a business shouldn’t have access to such an important resource. That’s where a fractional CTO comes in.

What is a fractional CTO?

A fractional CTO, instead of being hired on a full time basis, provides on-call CTO advisory services and consulting for businesses. The fractional part of their namesake references how these CTOs work:

  • For a fraction of the time
  • On a fraction of the projects
  • For a fraction of the cost

For the CTO specifically, this type of work offers a variable incentive, as it provides the opportunity to offer the same important skills to a wide range of clients of various sizes. As long as there is technology, and that technology benefits businesses, a fractional CTO will find work.

What are a fractional CTO’s responsibilities?

Broadly speaking, a fractional CTO’s goal is to understand the company’s business objectives and provide technological solutions in order to facilitate them. The end result is that a fractional CTO helps a business minimise their costs and maximise their ROI.

In order to make this happen, a fractional CTO requires expertise in;

  • Technology leadership and management
  • The development and delivery of technology products and services
  • The management of software development, as well as software development methodologies
  • Technology vision and strategy
  • Technology roadmap and the alignment of business objectives
  • The communication of technology strategies
  • Strategic partnerships management
  • Technology staff management
  • Technology scalability, robustness and maintainability assessment and planning
  • Risk, security and compliance management
  • Technology governance
  • Technology research and evaluation
  • Capital allocation, ROI evaluation and budgeting
  • Contract review and negotiation
  • The definition of key performance metrics

When should you hire a fractional CTO?

If you’re a medium size business, there are two truths concerning your priorities.

  • You need someone to coordinate the technological logistics of your business operations
  • You also probably lack the budget to hire someone full time in order to achieve this

That’s just one of the scenarios where a fractional CTO is the solution for you. You should also consider hiring a fractional CTO if:

  • Your business needs to make technology investments, but you don’t have a technology expert in your team
  • Your team features a handful of software developers that might be lacking the right experience or industry knowledge to make the strategic tech decisions for your company
  • You’ve consistently struggled to meet company milestones or raise funds to grow your business
  • You don’t have enough work to justify employing a full-time CTO
  • You’re working on a specific project that requires insight from a seasoned tech executive
  • You’re in-between CTOs and need someone to quickly and temporarily step in

What are the benefits of a fractional CTO?

There are a multitude of benefits that come from hiring a fractional CTO. Of course, there is the obvious benefit of having the expertise of a CTO, but at a more accessible price and with services that are easy to tailor to your business’ needs.

But, there are other benefits too, and they all accumulate into an effective way to help your business grow. We’re talking about improvements to the operations of your business, as well as new ways to achieve a better return on your investments. Below, we’ve listed the major benefits that come from hiring a fractional CTO.

A new strategic viewpoint

A CTO doesn’t just offer advice regarding technology for your business. The role of a newly hired fractional CTO in your business is to act as a single point of contact and the team member that is solely responsible for designing a technology strategy and the infrastructure and applications that will help you meet your business goals. The fractional CTO plays an integral part in your executive team, and the technology strategy and roadmap that they subsequently develop will closely align with your business needs and drivers and allow your business to be both competitive and productive. 

A new resource for information

It shouldn’t come as a surprise to anybody that a CTO typically brings years of experience and a wealth of information to your business. Their career has been dedicated to determining the most effective ways to incorporate technology to ensure business growth. A CTO plays an invaluable role in the following processes:

  • Determining the best technology strategies
  • Designing and implementing the best infrastructure strategies
  • Educating you on how to utilise social media to expand your customer base and make more conversions
  • Examining the feasibility of integrating cloud computing into your business’ SOP
  • Providing overall leadership and vision, etc.

A new liaison for your business

Communication plays a key role in how a business conducts itself. This means there are a lot of businesses that suffer from a lack of communication, particularly between different departments. For example, your IT department might have a cursory understanding of business processes and vice versa, but that doesn’t guarantee that these two departments can work together without external help.

What does guarantee that these two departments can work together is a liaison with extensive experience in both business and technology who can communicate and translate between the two separate departments. Your CTO can translate business speak into technology terms and also explain technology solutions in layman’s terms. This allows both the business and technology teams to understand goals, technology, and business drivers.

A guaranteed return on investment

The main goal of a fractional CTO is to help align technology spending with business objectives i.e. they’re going to make sure that the technology related decisions you make now pay off for your business in the long term.  They achieve this through a variety of methods, such as: 

  • Conducting cost/benefit analyses for potential technology investments
  • Maintaining budgets
  • Define ROI baselines
  • Help your business decide which technology projects, services, or applications will meet your business needs and what the return on investment will be

A new avenue for experience

Upon hiring a Fractional CTO, you get an expert capable of providing a broader spectrum of experience across many technologies. This eliminates the need for you to support a staff trained in multiple disciplines, while at the same time providing your business with new perspectives that can inform better standard operating procedures going forward.

Keep in mind that a fractional CTO exists outside of your business, and is therefore able to bring a wealth of knowledge and experience that exists outside of the confines that your regular staff is used to.

What should I consider when hiring a fractional CTO?

However, this does not mean that every business should hire a fractional CTO right this second. Much like any other business decisions, there are factors that need to be taken into consideration before they can be finalised. These decisions include factors such as:

The size of your business

Fractional CTOs are ideal for medium sized businesses. While they can be of some use to businesses that are of a size that’s larger or smaller, you want to ensure that:

  • Your business isn’t too small to the point where hiring a fractional CTO could severely impact your business’ finances in a negative way
  • Your business isn’t too big that a fractional CTO cannot feasibly coordinate your various departments due to their insurmountable size

The skills of your in-house team

It’s important to understand the skills of your in-house team to make sure that they don’t overlap too heavily with your fractional CTO. This is for two major reasons:

  • It is entirely redundant (and therefore a waste of money) to hire a fractional CTO if you already have staff who are able to coordinate your business’ technology
  • Staff that have the skills to conduct themselves as a fractional CTO may feel undervalued or under appreciated if you ignore them in lieu of hiring an external party

The complexity of your technological needs

Some businesses have more elaborate technology frameworks than others. If you’re a small business, you might not need an extensive technological evaluation that necessitates the hiring of a fractional CTO. It’s important not to see a fractional CTO as an instant way to improve your business; but rather as a means of identifying areas where your technological needs can be addressed, then determining the best way to address them.

In other words, if there are no perceivable gaps in your business’ technological framework, you might not need a fractional CTO.

Both the short and long term goals of your business

Remember what we said about communication? The less time you spend having to induct your CTO into your business’ culture and whatnot, the more efficiently they can help solve your business’ problems.

That’s why, before you approach any fractional CTO, you should already have a strong and communicable idea of what you hope to achieve for your business in both the short and long term. To put it simply, it gives your fractional CTO something to work with.

Where can I get high quality help for my business?

Digital Treasury does not offer a fractional CTO for your business. However, we do offer a wide range of knowledge and expertise to heighten your business’ visibility online. Contact us so we can help you grow your business.

Frequently Asked Questions
Can Your Provide Case Studies Or Examples Of Previous Work?

Yes, we can provide case studies and examples of our previous work. Potential clients frequently request these to see concrete evidence of our past successes. They want to understand how we’ve helped similar businesses achieve their goals through SEO and website development. Our case studies typically highlight our clients’ challenges, the strategies we implemented, and the measurable results we achieved, such as increased traffic and higher conversion rates. This builds trust and demonstrates our ability to deliver on our promises.

Do You Offer Ongoing Maintenance And Support After The Website Is Launched?

Post-launch support is crucial for maintaining website performance and security. Clients want to know if the company provides:

Regular Updates: Ensuring the website remains up-to-date with the latest software versions and security patches.
Technical Support: Assisting with any issues that arise, such as bugs or downtime.
Content Updates: Offering services to update or add new content as the business evolves.
Performance Monitoring: We regularly check the site’s speed, uptime, and other critical metrics to ensure optimal performance. This ongoing support provides peace of mind, ensuring that the client’s website remains effective and secure over time.

What is SEO, And Why Is It Important For My Business?

SEO (Search Engine Optimisation) is a digital marketing approach focused on boosting your website’s presence on search engines like Google, Bing, and Yahoo. By refining different elements of your site—such as content, meta descriptions, and backlinks—SEO works to improve your website’s position in search engine results. This increased visibility is vital as it attracts more organic traffic, potentially leading to a rise in leads, sales, and overall business success. Businesses frequently discuss the basics of SEO, its importance in attracting targeted visitors, and how it supports wider business goals.

How Long Does It Take To See Results From SEO?

SEO is a strategy that requires a long-term commitment, and it's essential to have realistic expectations from the outset. Typically, businesses may notice significant improvements within 3 to 6 months. However, this can differ depending on factors such as the level of competition, the industry, and the website's current condition. While addressing technical issues can result in some early successes, meaningful increases in rankings and traffic usually develop over time. Clients often ask for a clear timeline to gauge when they might start seeing a return on their investment (ROI).

What Does Your SEO Process Involve?

Website Audit and Analysis: Conduct a thorough evaluation of the site to pinpoint strengths, weaknesses, and areas that can be enhanced.
Keyword Research: Identify relevant keywords that your potential customers actively search.
On-Page Optimisation: Improving various on-page elements such as meta tags, headers, content, and internal linking to increase site effectiveness.
Content Development: Crafting high-quality, engaging content tailored to the needs of your target audience.
Link Building: Securing backlinks from credible websites to enhance the site's domain authority.
Technical SEO:Ensuring the website is technically robust, with fast loading speeds, mobile responsiveness, and secure connections.
Ongoing Monitoring and Adjustment: Regularly track performance and make necessary adjustments based on data and trends. Clients ask about these steps to ensure they are investing in a thorough and effective SEO strategy.

How Do You Measure The Success Of An SEO Campaign?

Success in SEO is measured through a variety of Key Performance Indicators (KPIs), including:

Organic Traffic: The number of visitors coming to the website from search engines.
Keyword Rankings: The position of targeted keywords in search engine results pages (SERPs).
Conversion Rates: The percentage of visitors who take desired actions (e.g., filling out a form, making a purchase)
.Bounce Rate: The percentage of visitors who leave the site after viewing only one page.
Domain Authority: A score that predicts how well a website will rank in SERPs based on factors like link quality.
ROI (Return on Investment): Evaluating the financial return from SEO activities in comparison to the cost. Clients want to understand these metrics to gauge the effectiveness and profitability of their SEO investments.

How Do You Stay Updated With The Latest SEO Trends And Best Practives?

SEO is an ever-evolving field, with search engines like Google regularly updating their algorithms. We make it a priority to stay ahead of these changes.This might involve:

Continuous Learning: Attending industry conferences, webinars, and training sessions.
Membership in Professional Organisations: Being part of SEO communities or organisations that provide the latest insights.
Regular Testing and Experimentation: Consistently testing new strategies and adapting to changes in algorithms.Industry Research: Staying informed with the latest studies, white papers, and expert opinions in the digital marketing sector.We are confident that our SEO strategies are current and that we are proactive in adopting best practices.

Do You Offer Ongoing Maintenance And Support After The Website Is Launched?

Post-launch support is crucial for maintaining website performance and security. Clients want to know if the company provides:

Regular Updates: Ensuring the website remains up-to-date with the latest software versions and security patches.
Technical Support: Assisting with any issues that arise, such as bugs or downtime.
Content Updates: Offering services to update or add new content as the business evolves.
Performance Monitoring: We regularly check the site’s speed, uptime, and other critical metrics to ensure optimal performance. This ongoing support provides peace of mind, ensuring that the client’s website remains effective and secure over time.

How Do You Ensure That My Website Is User Friendly And Optimised For Conversions?

Yes, we ensure that your website is both user-friendly and optimised for conversions. We understand that clients want a website that attracts visitors and encourages them to take action. To achieve this, we focus on several key areas:

User Experience (UX) Design: We create an intuitive and engaging interface that makes navigation easy and enjoyable for users.Responsive Design: We ensure your website is mobile-friendly and looks great on all devices.
Call to Action (CTA): We strategically place buttons and forms to prompt users to take the desired actions.
Speed Optimisation: We ensure fast load times to reduce bounce rates and keep users engaged.
Conversion Rate Optimisation (CRO): We analyse user behaviour and make data-driven adjustments to increase the percentage of visitors who convert.By incorporating these principles, we maximise the chances of turning your website visitors into customers.

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