Fractional Leaders and When They Are Useful

Hiring freelancers for specialized roles long ago ceased to be a novelty. Now, the trend is expanding to the C-suite. Can you really hire part-time executives? This article explores fractional leadership and its benefits and limitations.

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More and more organizations are applying the project-based model to leadership roles, particularly companies that can’t afford to fill full-time executive positions. This trend is booming: in 2022, only around 2,000 LinkedIn users described themselves as fractional leaders, but by early 2024, that number had risen to over 110,000.

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It's easiest to imagine part-time leadership roles in areas like marketing and HR, which is why positions like “Fractional Content Director” and “HR Business Partner” have become fairly common. However, this approach is gaining traction in other areas, as well, even in the C-suite. Get ready to see more job titles like these: 

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• Interim Executive Director / Fractional CEO
• Fractional CMO
• Fractional COO
• Fractional CPO (Chief People Officer)
• Fractional CFO
• Fractional CIO (Chief Information Officer)
• Fractional CTO (Chief Technology Officer)

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While the market has gotten used to the idea of freelance work, HR departments still feel cautious regarding fractional leaders. Employers have various concerns:

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1. Can part-time leaders immerse themselves deeply enough in their tasks? Can they truly share the company’s culture and values?
2. Will they respond to challenges and make decisions quickly?
3. Can they build trust with full-time staff?

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On the one hand, these concerns are valid – in certain situations, fractional leadership can be a liability. At the same time, it can also be a natural solution amid conflicting organizational challenges and needs.

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Benefits of fractional leadership

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High-level expertise for less  

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Fractional leadership gives companies access to highly qualified, experienced professionals without the expense of hiring them full-time. This approach is especially relevant for startups and SMBs that need strong guidance but whose budgets are limited.

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No wasted time or money  

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A company can assign a part-time executive precisely those tasks that have gone uncompleted due to insufficient resources or expertise. This prevents situations where a superstar gets brought on, and then the business has to think up some busy work to justify the hire. Often, there’s no need for a full-time virtuoso executive; their efforts are best applied to specific critical projects.

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Fresh perspectives

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External leaders can bring expertise and a fresh, unbiased perspective. They can help the company view its product and internal processes in a new light, offering solutions and optimization strategies that didn’t occur to in-house teams.

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Conflict mediation  

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Fractional leaders are often better equipped to mediate in emotionally charged situations. As Jason Voiovich, a fractional chief marketing and product officer, put it.

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“As a fractional, not being dependent on a single company for my income, I have a heightened sense of responsibility and feel empowered to initiate difficult conversations.”

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Guidance for full-time managers  

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Fractional leaders often mentor other senior executives. Barry Hurd, a fractional CMO with 30 years of experience, explains that companies frequently hire him to “double-check their work.” He functions more as a coach, bringing his wisdom and experience to benefit small, fast-growing businesses as well as large corporations.

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When not to hire a fractional leader

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Fractional leaders are not a one-size-fits-all solution. Here are some situations where they may not be the best choice.

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• Need for long-term leadership: If a company requires sustained, strategic leadership, fractional executives may struggle to provide it.
• Complex organizational structures: Large corporations with multi-layered hierarchies may find it difficult to integrate fractional leaders, as frequent coordination with multiple departments is required.
• Lack of clear responsibilities: Fractional leadership works poorly without well-defined tasks and critical issues to be addressed. When the situation is hazier, an executive needs to be fully immersed in the organization in order to intuit where their efforts are most needed.
• Crisis management: If the company is going through a financial or operational crisis, a dedicated full-time leader is needed to navigate the storm and work around the clock to solve problems.

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In short, fractional leaders are a powerful tool for companies that need to address specific, well-defined challenges — and not all aspects of a business qualify. Before hiring a part-time leader, it’s important to assess your company’s situation and clearly define what they would be responsible for.