Tag: Future of COO

  • The Fractional Context Crisis: Why Fractional COOs Need a Different Kind of Technology

    The Fractional Context Crisis: Why Fractional COOs Need a Different Kind of Technology

    The fractional executive model has grown quickly because it solves a very real business problem. Companies can bring in experienced senior leadership without committing to a full-time executive hire, and the executive can work across several businesses at once, applying pattern recognition and experience in situations where that expertise can have an immediate impact. For Fractional COOs in particular, the model makes a lot of sense. They are brought in to improve execution, remove bottlenecks, create accountability, tighten process and help management teams operate more effectively.

    What I find interesting, though, is that the technology most fractional executives rely on was never really designed for the way they work.

    Most business software assumes that the user works inside one company. One CRM. One email environment. One calendar. One project management system. One set of colleagues. One leadership team. One company history and one set of priorities. A Fractional COO may be moving across four, five or six businesses in the same week, and sometimes several in the same day. Each client may use different systems, different terminology, different communication channels and completely different operating processes. The executive is expected to move between those environments almost instantly and still perform as if each one has their full attention.

    That creates a cost that is easy to underestimate. I think of it as the Fractional Context Tax: the time and mental energy required to repeatedly reconstruct enough context to operate effectively inside each client.

    The challenge is not simply having too many applications open. It is having to remember why the information inside those applications matters. Before a meeting, a Fractional COO may need to recall what was agreed three weeks ago, what has happened since, which actions are still outstanding, where an initiative has stalled, who owns the next step and what concerns the CEO raised in the last conversation. The information may all exist, but it is often spread between email, meeting transcripts, project systems, CRM records, spreadsheets, notes and messages. In practice, the fractional executive becomes the human integration layer connecting all of it. That structural mismatch is one of the central problems identified in the research behind this article.

    There is an important difference between this and normal task switching. A full-time executive may move from a finance meeting to a sales meeting, but they are still operating within the same company, with the same people, goals, terminology and institutional history. A fractional executive can finish a meeting about supply chain execution for one client and, thirty minutes later, discuss commercial performance with another business that has completely different priorities, people and systems. The transition requires more than opening another browser tab. It requires rebuilding the mental model of the company.

    That is why I believe the conversation around AI for fractional executives needs to move beyond simple productivity.

    Most AI products today are presented around individual tasks. They can summarize a meeting, draft an email, review a document, research a topic or create a task list. All of those things are useful, but they do not necessarily solve the broader operating problem. If the executive still has to locate the information, gather the relevant background, explain the client context to the AI and then move the output into another system, some time has been saved, but the underlying fragmentation remains.

    The bigger opportunity is to have technology carry more of the context itself.

    For a Fractional COO, meeting preparation is probably one of the clearest examples. Preparing properly for an important client meeting often means opening several systems and piecing together the story of what has happened since the previous conversation. You may need the last meeting notes, a project update, an email thread and a list of open actions before you have enough information to walk into the discussion confidently. Sentia+ approaches that problem by maintaining an ongoing operational memory across meetings, communications, tasks, relationships and client activity, so that the executive can retrieve a client briefing without rebuilding everything manually.

    The distinction is important because the real value is not simply faster search. It is reducing the amount of mental reconstruction required every time the executive switches clients. If the system can tell you what has changed, what remains unresolved, which commitments are outstanding and what deserves attention before the meeting begins, then the executive starts the conversation with the context already loaded rather than spending the first ten minutes getting reacquainted with the account.

    Communication is another obvious source of friction. A Fractional COO may have one client on Teams, another on Slack, several email accounts, direct messages with founders and perhaps WhatsApp or LinkedIn conversations mixed in as well. The problem is not just the number of messages; it is the fact that every message is separated from the broader operational context around it.

    A note that says, “Did we get this resolved?” is simple only if you immediately remember what “this” refers to. Otherwise, you are searching through previous conversations, project notes or meeting records before you can respond. The more clients an executive manages, the more frequently that happens.

    A more useful communication model connects the message to the client, the person, the project, the previous conversations and the outstanding commitments. Sentia+ is designed around that idea, bringing communications from different channels into a unified environment and linking them back to the relevant client context rather than treating them simply as another stream of messages.

    This also exposes a broader problem with the software we have spent the last twenty years building. Most enterprise applications depend on the human user to keep them current. The CRM has value only if someone updates it. The task system works only if someone creates the task. The project plan is accurate only if somebody changes the status. The contact record is useful only if somebody logs the interaction. We have become so accustomed to this that we rarely question whether senior people should be doing that work at all.

    For a fractional executive, the problem compounds because the same administrative expectation exists across several businesses. Every additional client creates another set of records to maintain, another set of follow-ups to enter and another set of systems that depend on somebody remembering to keep them up to date. Inevitably, some of it slips. The CRM becomes incomplete, tasks remain buried in meeting notes, follow-ups get pushed back and project information drifts away from reality.

    This is an area where AI should change the relationship between the executive and the software. If the work is already happening in emails, meetings, calendars and communications, the technology should be able to capture much of that activity without asking the executive to re-enter it somewhere else. Sentia+ is designed to extract context from everyday work and turn it into structured actions, updates and follow-up rather than relying entirely on manual maintenance.

    The practical difference for a Fractional COO is fairly significant. Instead of spending time feeding the system, the executive can spend more time reviewing what the system has captured, deciding what matters and applying judgment where judgment is actually required.

    There are three areas where I think this change has the greatest potential impact:

    • Preparation: reducing the time spent reconstructing client history before meetings and decisions.
    • Coordination: capturing actions, commitments and follow-ups without forcing the executive to manually move information between systems.
    • Visibility: allowing the executive to ask what is happening across the client environment without first building another report.

    That third area is particularly relevant to COOs because operational visibility is a core part of the role. A COO needs to know where execution is slowing down, what is at risk, which projects are drifting, where resources are constrained and what requires intervention. The problem is that the information rarely lives in one place. Commercial activity may sit in CRM, project execution somewhere else, financial data in another system and additional context inside spreadsheets or presentations.

    The traditional solution has been to pull the information together manually. Export the data, reconcile it, update the spreadsheet, build the report and explain what happened. That process may create a useful management view, but it also consumes time and often leaves leadership looking backward. By the time a weekly report has been assembled, the underlying situation may already have changed.

    What becomes much more interesting is the ability to ask operational questions directly: What changed this week? Which commitments are late? Where are we starting to see risk? What needs attention today? The Sentia+ model described in the underlying research is intended to combine external data, conversational analysis and automated briefings so that the executive can get closer to continuous operational visibility rather than repeatedly assembling static reports.

    Meetings are another area where the difference between recording activity and actually supporting execution becomes obvious.

    We have become much better at capturing meetings. Transcription tools can give us a record of almost every conversation, and AI can summarize what was said within seconds. That is useful, but a transcript or summary is still only a record. The real value of the meeting comes from whether the decisions made during the conversation turn into action afterward.

    That sounds obvious, yet a large amount of operational work still depends on somebody manually taking the output of the meeting and converting it into tasks, deadlines, project updates, follow-up emails and accountability. For an executive who moves straight from one client conversation into the next, that handoff is exactly where things can begin to disappear.

    A better system should understand that a statement such as “John will come back with the revised numbers by Friday” is not just text inside a transcript. It is a commitment with an owner and a deadline. It should become something that can be tracked. Likewise, if the leadership team agrees to change a priority, that decision should become part of the client’s operational context rather than remain buried inside a meeting summary.

    Sentia+ Meeting Intelligence is designed around this broader interpretation of the meeting, with the ability to capture discussions, identify decisions and risks, convert commitments into structured tasks and prepare follow-up communications tied to the appropriate project or client.

    That, to me, is where the AI conversation becomes more meaningful for Fractional COOs. The goal should not be to give them another AI application. It should be to reduce the amount of coordination work that sits between the executive and the outcome they are trying to achieve.

    There are already thousands of AI tools capable of completing individual pieces of work. You can use one application to draft an email, another to summarize a call, another to research a company and another to analyze a spreadsheet. In isolation, each can save time. But if the executive still has to move the information between them and continually reintroduce the client context, there is a risk that we simply create a new version of the problem we already have: more capable tools, but still too many disconnected tools.

    For the fractional market, I believe the more valuable direction is toward an operating layer that understands enough of the environment to connect the work together. It needs to know the client, the people involved, the history, current initiatives, communications, commitments and priorities, and it needs to retain that context as the executive moves from one engagement to another.

    That matters because the economics of fractional work ultimately come down to capacity. A Fractional COO can only take on so many clients before administration, preparation and coordination begin to consume too much of the week. If every additional client creates a proportional increase in software maintenance, reporting, searching and follow-up, there is a natural ceiling on how far the model can scale.

    AI has the potential to move that ceiling, but only if it removes work rather than simply creating another place where work happens.

    For me, that is the most important point. Fractional executives do not need technology to make them look busier or help them generate more output. They need technology that reduces the amount of operational friction surrounding the work they were actually hired to do.

    The best Fractional COOs are valuable because of their judgment, experience, ability to see around corners and ability to turn complexity into execution. Their technology should help preserve more of their time for exactly those things.

    The real opportunity is not to ask how much more work a Fractional COO can do with AI. It is to ask how much unnecessary work AI can remove from the Fractional COO in the first place.

  • AI in Operations: Comparing 2024 Predictions to 2025 Reality & 2026 Outlook

    AI in Operations: Comparing 2024 Predictions to 2025 Reality & 2026 Outlook

    March 2024 Predictions vs. 2025 Reality

    Way back in March 2024 I wrote an article outlining 10 key AI use cases for COOs and predicted a shift from experimentation to implementation. With over a year (an eternity in AI time) in the rearview mirror I was curious how close I was to reality.

    Here’s how those 2024 predictions align with current trends and where reality diverged:

    2024 Prediction

    2025 Reality

     

    Predictive Maintenance

    Widely adopted, with AI now enabling autonomous maintenance decisions via agentic AI (e.g., reducing equipment downtime by 30–40%).

    McKinsey

    Demand Forecasting

    Enhanced by gen AI’s ability to analyze unstructured data (social sentiment, weather) for hyper-accurate predictions.

    McKinsey

    Supply Chain Optimization

    AI now orchestrates end-to-end supply chains in real time, breaking silos between procurement, logistics, and production.

    EdgeVerve

    Fraud Detection

    Expanded to cybersecurity: 55% of COOs now use gen AI for real-time threat detection and automated response.

    PYMNTS

    Bonus: Real-Time Market Shifts

    Partially realized via AI agents that monitor global data streams, though adoption remains early-stage.

    Operations Council

    Strategic Business Proposals

    Emerging via multiagent AI systems that simulate scenarios and draft strategies (e.g., $30M revenue gain from AI-managed sales accounts).

    McKinsey

     

    Where Reality Diverged:

    1. Gen AI Dominance: 2024 focus on “traditional” AI (predictive analytics) underestimated the rapid rise of generative AI and agentic AI (autonomous systems that act on insights).
    2. Cybersecurity Focus: Gen AI’s role in data security (55% adoption) became a critical COO priority, not just fraud detection.
    3. Centralized Governance: COOs now lead AI centers of excellence (COEs) to align siloed teams, a trend not anticipated in 2024.

    With a pretty good track record lets give it a go for the future and one year from now we can revisit and see how we did.

    New Predictions for 2026–2027

    Based on 2025 trends and gaps, here’s where AI in operations is headed:

    1. Autonomous AI Agents Will Begin to Manage End-to-End Processes
      • AI “employees” will handle complex workflows (e.g., procurement negotiations, shift turnover handoffs) with minimal human oversight.
      • Example: Gen AI agents will resolve supply chain disruptions in real time by rerouting shipments, renegotiating contracts, and adjusting production schedules.
    2. Ethical AI Governance Becomes a Core COO Responsibility
      • COOs will oversee AI ethics frameworks to mitigate risks like bias in hiring algorithms or sustainability gaps in supply chains. This maybe in addition to CAIEO’s (see CAIEO article) responsibilities or taking over their responsibility.
    3. AI-Driven Upskilling Replaces Traditional Training
      • Personalized AI coaches will train teams on new tools/processes in real time, reducing onboarding time by 50%.
    4. Cybersecurity AI Expands to “Zero Trust” Operations
      • Gen AI will autonomously enforce zero-trust policies, isolating threats before they breach systems.
    5. COO-CIO Collaboration Defines AI ROI
      • Success will hinge on tight integration between COOs (process owners) and CIOs (tech enablers), with shared KPIs for AI-driven efficiency gains. New roles such as CAIO will also evolve with AI Legal roles – protecting the data each business creates via its artificial intelligence work.  

    How did I do?

    My 2024 vision of AI streamlining operations has proven accurate, but the tools have evolved even faster than I predicted (See AI Time) .

    Gen AI and agentic systems are now rewriting playbooks, with COOs leading enterprise-wide reinvention / applications. The next phase will focus on autonomy (AI agents), ethics, and human-AI symbiosis.

    For COOs, I believe the mandate has become clear:

    • Partner with CIOs, CAIO, CHRO
    • Govern AI centrally – Ensure Data’s use and storage is crystal clear
    • Prepare teams for a future where AI isn’t just a tool-it’s a colleague
    • Prepare with legal team parameters and acceptable uses of AI within the corporate framework and put guardrails on non-authorized use within enterprise platform.

    What do you think? How will COO roles change in 2026 and beyond? What have I missed? Please comment below.

    #AIinOperations #COO #GenAI #FutureOfWork #DigitalTransformation

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