Navigating the ups and downs of a team in a fast-moving startup is all part of the job. But we don’t need to tell you that–as a founder, you’re already wearing multiple hats. CEO, mentor, maybe even HR, which makes giving feedback a crucial part of your position, too.
In any business, feedback isn’t just nice to have. It’s crucial. It’s the engine behind your rapid iteration, the fuel that drives company growth. Without it, small issues can quickly snowball into major problems, and teams can fall into patterns of miscommunication and underperformance. However, for startups, the challenge is creating a healthy feedback culture within a tight-knit team.
When every member of the team is critical, the stakes of feedback feel higher, and the fear of losing talent is very real.
There are a few ways to tackle this challenge, and one of them is fractional leadership. With their experience, fractional execs can bring objectivity and structure to the feedback process. They can turn it from something you dread into something that’s actionable and constructive.
Here’s how.
New businesses face a whole host of challenges–that’s why 90% of startups fail. This statistic might scare you, and it should! The hard truth is that, without addressing these challenges, startup leaders can’t drive the company in the right direction.
And feedback is an enormous challenge. It presents several obstacles that are unique to the startup environment:
Despite these challenges, though, feedback remains crucial. In fact, 60% of employees want more feedback, and this number increases to 72% for millennials. And when you consider the benefits of feedback (including the fact that 85% of employees take more initiative when they receive frequent feedback), it’s clear that the issue needs to be addressed.
One way to address the challenges of feedback is Fractional leadership. Unlike traditional full-time executives, fractional leaders bring deep expertise from their respective industries, without the same emotional attachment that can blur decision-making in startups.
They can help founders in several ways, including the following.
Fractional executives have a neutral, unbiased perspective because they come from outside the company. As a result, they lack the emotional investments and personal ties of internal team members. So, they can offer a clear-headed, objective view on performance issues.
This external position helps them depersonalize their feedback, making it less about personality traits and work outcomes. Fractional leaders are good at focusing on facts and measurable performance, fostering a less charged feedback atmosphere.
Usually, fractional leaders have prior experience in larger organizations. They can bring the well-developed feedback systems of established companies to your startup, transforming any existing ad-hoc feedback style.
Don’t get us wrong–fractional leaders don’t just copy-paste systems from bigger companies; they adapt them to fit the startup at hand. This includes creating customized feedback loops that fit the company’s size, team dynamics, and growth stage.
For startups led by first-time founders, fractional leaders can provide much-needed guidance, introducing best practices that founders may not have encountered before.
Startups often focus on short-term survival and immediate results, but fractional leaders help teams see feedback as an investment in long-term growth. After all, constructive feedback doesn’t just improve individual performance, but strengthens the company’s ability to scale sustainably.
Also, fractional executives emphasize the role that feedback plays in the overall growth of the company. They help founders see that feedback is a tool for nurturing talent and improving the company as a whole.
In many startups, feedback is only given when problems arise. This creates a reactive culture.
Fractional leaders steer startups away from this and toward regular, structured performance evaluations that keep feedback flowing proactively before issues escalate.
With quarterly or biannual performance reviews, startups can better track progress, identify areas for improvement, and keep growing sustainably. Plus, feedback becomes an ongoing dialogue rather than a once-a-year event, keeping employees both accountable and motivated.
Fractional leaders encourage startups to be open and transparent, ensuring that feedback isn’t feared but welcomed. By normalizing feedback, they reduce the stigma around difficult conversations.
Fractional executives also help establish clear performance metrics. When feedback is based on measurable results, it becomes much less subjective, and much less personal. Feedback that’s grounded in facts is, after all, easier to give and receive.
Creating a strong feedback culture is no easy feat. It requires more than occasional feedback–it needs to be intentional, structured, and date-driven. Fractional executives can play a key role in establishing these systems and setting the tone for healthy feedback across the organization.
It all starts with the feedback loop. The feedback loop works like this:
But, since it’s a loop, it must be continuous. In startups, where rapid iteration is key, a well-designed feedback loop ensures that both leaders and employees stay aligned on goals and performance.
Fractional leaders can help startups to create and implement these feedback loops by scheduling regular check-ins, performance reviews, and one-to-one meetings. That way, feedback becomes a more consistent part of operations, rather than an afterthought.
Having scheduled touchpoints allows employees to anticipate feedback and understand what’s expected. Not only does this create a healthier culture around feedback, but it also allows employees to course-correct before problems escalate.
Aside from implementing the feedback loop, fractional execs can make your loop more constructive. By focusing on key performance indicators (KPIs) as a part of the feedback, it becomes less about personal criticism. Tying feedback to data removes the emotional charge, which means employees can focus on actionable solutions instead of feeling attacked.
And it’s not all about criticism, anyway. Fractional execs can also build praise into the feedback loop, ensuring that your company is as good at recognizing successes as it is at delivering negative feedback.
The balance between praise and constructive criticism ensures that feedback isn’t a constant barrage of negativity. Instead, employees can celebrate small wins and make incremental improvements.
Getting everyone on board with the growth mindset is a complex task, and that’s why a fractional leader can really help. After all, it ensures that business owners can focus on other performance metrics while a professional handles the HR.
We won’t lie to you. Giving difficult feedback can be daunting, especially in a startup environment, but employing these practical strategies can make things easier.
Firstly, be specific, not vague. Instead of saying “you’re not performing well”, provide specific examples of behaviors or actions that need improvement. You can also use the “sandwich technique” which goes like this:
This helps to soften the blow and keeps the conversation constructive.
Secondly, frame feedback in terms of outcomes. Explain how the employee’s actions or behaviors affect the team or the company as a whole. This helps them understand the broader implications of their work.
Depending on the situation, you can also use first-person statements instead of second-person. Instead of saying “you’re always late,” try, “I feel frustrated when deadlines are missed.” This takes the focus off the employee and their personal qualities.
Finally, make sure you follow-up to hold employees accountable. The feedback loop is useless without acting on it. Make sure you clearly communicate the desired outcomes to the employee during the discussion. Then, schedule regular check-ins to monitor their progress and provide additional support as needed.
Don’t forget to acknowledge and reward positive changes, too. The goal of feedback is to help employees grow and improve, so positive reinforcement is crucial.
Even with the best intentions, feedback can sometimes cause friction. It’s natural for people to resist change or feel defensive when their performance is questioned. Fractional leaders play a crucial role in navigating these reactions and shifting the focus back to growth, but how?
The most effective way to overcome any resistance is to build a foundation of trust. Leadership needs to show that they understand the employee’s perspective and are genuinely concerned about their wellbeing. This means open, honest communication about goals, expectations, performance, and so on.
Another method is to create a culture of two-way feedback, which is the best way to foster accountability and identify blind spots. Fractional leaders can encourage two-way feedback in a startup by:
Fostering a healthy feedback environment is the best way to overcome resistance, but it’s not a tool to fix everything. Some employees will feel more defensively than others. Fortunately, fractional leaders often have the expertise to deal with these discrepancies.
The importance of feedback cannot be overstated. It’s essential for growth and development, and yet, it can be challenging in startups. Fractional leaders can bring objectivity, structure, and expertise to this process, helping new businesses overcome these challenges, but it’s still important for founders to understand the feedback process.
The right fractional leader can help your business to implement structured, objective, and actionable feedback. And with these structures in place, you can reap the rewards of reduced conflict and stronger relationships.
Fractional Wizards can provide the expertise you need to implement effective feedback and build a high-performing team. Our leaders can help you develop a feedback culture, deliver difficult feedback, address resistance, and track your progress. And all this while you focus on growth!
To learn more about how fractional leadership can help your startup thrive, get in touch with us today. Our team of experienced professionals can provide tailored solutions to meet your unique needs. But we have limited spots available–don’t miss out!
