What is Fractional Leadership?
And why it’s gaining in popularity.
Fractional leadership, often called outsourced leadership, is where companies partner with leaders who are equipped to fill part-time positions on your C-suite bench - an FXO, if you will. This can apply to other layers of leadership as well; it simply depends on the needs of the company. Fractional leaders dedicate a portion of their time to a business and therefore, cost significantly less that a full-time CXO.
Fractional Leadership
Part-time Executive Addition to Your Leadership Team
Fractional leaders bring specialized skill sets like sales enablement, corporate marketing, operations, IT or finance. They leverage those skills, paired with experience, to lead, drive, inspire and support a company on their growth journey. From mergers and acquisitions to enhancing culture, fractional executives tend to have the experience companies need to grow.
Fractional leaders are typically brought in when a company does not need a full-time executive or simply can’t afford one. Imagine how impactful it would be to have a ringer on your team who can help knock down walls and open doors to opportunity. Demand for Fractional CMOs and Fractional CROs are rapidly increasing among C-level roles where companies gain serious firepower for a fraction of the time and cost.
Four reasons demand for fractional leadership is on the rise.
The “brain tank” is much bigger. Financial impacts from COVID forced layoffs which affected thousands of senior leaders. Many of whom entered the gig economy.
Good with remote staff. Companies from around the world are seeing the value of a remote workforce.
Save money. Continuous exploration in ways to manage cost while improving performance.
Flexible and fast. Companies are expecting agile solutions with flexible commitments.
Smart companies are looking for experienced executives who can identify challenges, provide solutions and work as a team to implement those solutions. The fractional leadership model can deliver on those needs in a more cost-effective way than hiring full-time. Companies who hire fractional leaders find value in the expertise they bring as well as their ability to focus on strategic initiatives.
The difference between a fractional leader and a consultant.
Fractional leaders and consultants both serve critical, and in many cases, game-changing roles when leveraged properly. According to Wikipedia, a consultant is a professional who provides advice and further purposeful activities in an area of specialization… "someone who has influence over an individual, group, or organization, but who has no direct authority to implement changes." Because they are specialists, they can enter a situation and provide deep insight and even a plan that helps solve a problem in more detail and in less time than a non-specialist. In many cases, consultants are project oriented.
On the other hand, Wikipedia calls out that fractional leaders may have a similar level of experience and specialization as a consultant but are more than a consultant in the classical sense. While they bring the same or greater know-how and experience, they also take an active leadership role in the company that hires them. They implement, execute, and lead as it is customary for their permanent hire counterpart.
Business consultants and fractional leaders are called into to solve core issues or help companies realize their potential. If you know you have a problem and are looking for solutions to implement yourself, a consultant is a great option. If you’re looking someone to identify the issues, then stay on as an embedded team member to execute, take a look at the fractional model.
In closing.
The popularity of fractional executive leadership is increasing as companies realize they can now afford a fractional Chief Marketing Officer, for example. Thanks in part by eliminating the costs of healthcare, insurance, benefits, and other overhead associated with full-time hires as well as the influx of experienced gig economy leaders.
If you’re looking ways to unlock growth potential and not sure if a consultant or fractional leader is the right move, let’s talk about it.