What is Fractional Leadership?
Fractional leadership, a concept that has been around for decades, is experiencing a resurgence. In this model, senior leaders work part time, temporarily or on a contract basis providing specialised expertise to one or more organisations. Accordingly to Harvard Business Review, “As of mid 2024, over 110,000 people on LinkedIn identify as fractional leaders,” up from just 2,000 two years prior.
For modern CEOs, supplementing the leadership team with experienced C Suite advisors, from CFOs and COOs to CHROs, CMOs and beyond, can be a smart solution. It offers the right expertise to close the short-term skill gap, drive growth, and provide strategic leadership as the organisation scales or navigates complex challenges.
For example, Bill Gates has served as a fractional leader, working as a part time advisor in the Bill and Melinda Gates Foundation providing expertise in the field of technology and philanthropy following his departure from Microsoft as a full-time CEO.
Traditional to Modern
The pandemic has reshaped how we work, pushing organisations and employees into a world that is no longer predictable. The rapid pace of change, along with the need for technological adoption and flexible work arrangements, has created a new reality. With the rise of hybrid work models, the workplace has evolved beyond the four walls of the office, creating an ecosystem of employees working remotely, in co-working spaces, or from anywhere.
Employees now have more freedom than ever to choose their working style, employer, and schedule. At the same time, organisations have the opportunity to innovate their workforce planning, offering dynamic roles that align with the evolving needs of the business and its stakeholders.
Working with Fractional Leaders
When recruiting a fractional leader, it’s essential to identify the work that needs to be done rather than the role that needs to be hired. Shift your mindset from hiring an employee to appointing an expert. Ask yourself, will bringing in an expert accelerate growth, and will it be the right fit in 6-9 months?
Think of recruiting a fractional leader like hiring an IT consultant to implement a new software solution. The consultant assesses the current setup, designs the upgrade plan, trains the team and once the system is running smoothly, they exit, leaving the company ready to operate independently.
While fractional leaders offer significant advantages, there are challenges compared to full time counterparts, such as:
- Limited availability
- Limited investment in organisation’s success
- Potential cultural misalignment, communication or collaboration challenges
- Difficulty building relationships, trust and rapport
To minimise these risks:
- Schedule regular check ins with the CEO to track progress and set priorities
- Include fractional leaders in key leadership meetings
- Foster relationship building and open communication
The key to success is integrating the fractional leader into your leadership team and ensuring they have the resources and information to perform their duties effectively, just like onboarding a new hire.
The Bottom Line
As a general rule of thumb, labour costs often make up 30% – 60% of a organisation’s overall budget. Fractional leaders offer several benefits to the bottom line, including:
- Lower salary and benefits costs for expert talent
- Flexible, project based employment
- Quick integration into roles, avoiding lengthy hiring process
- Access to external insights, industry knowledge, and networks
- Mentorship and knowledge transfer to the leadership team
Is Fractional Leadership A Good fit for Your Business?
Fractional leadership can be a great fit for businesses seeking specialised expertise without the long-term commitment or high costs of a full-time executive. If your organisation needs targeted guidance for specific projects or challenges, and you’re open to leveraging remote talent, fractional leaders provide flexibility, scalability, and deep knowledge tailored to your needs, helping accelerate growth while keeping overhead manageable.
Reflect on this:
What projects would you delegate if you could find the right person with the right skillset to drive outcomes as help your organisation grow?