When to Hire Fractional

Fractional Leadership has emerged as one of the tech world’s major trends in 2024. Many companies have sought to combat rising compensation costs and an uncertain financial landscape by borrowing a pattern that seems direct from the agile and lean playbooks.

What is fractional leadership?

Fractional leaders are “part-time” or “project-based,” experienced leaders who share their expertise across multiple companies at the same time. If this model sounds somewhat similar to what you get when hiring a consultant, it’s because it is.

However, unlike a consultant— who may very well be working for you full time while on a project— the very name “fractional” describes a specific kind of relationship and expectation.

Why hire a fractional leader?

• It’s cost effective

  Fractional leaders cost only a fraction of what a full-time executive hire may cost. One article cites an example of a Chief Marketing Officer. A total compensation package in 2024 may cost north of $300K, while a fractional officer costs $10-15K/month.

• It’s flexible & scalable

  Fractional leadership empowers organizations to adapt to a changing landscape quickly. A new product launch might necessitate strategic product leadership, or an app modernization might require technical leadership. Sometimes you may only need a couple hours of design leadership help, but other moments might require more intense engagement. In short, you can grow the time (and the roles) to meet what your business is experiencing at this moment.

• It’s a true outsider’s point of view

  Separated from organizational dynamics and office politics, a fractional executive can bring objectivity to a project. Further, this is where you benefit from the fractional nature of your hire— they can bring their diverse experiences from their other engagements. Entrpreneur cites that “full-time executives […] typically hold only 5-6 positions in their careers.” Your fractional executive might hold that many positions in a single year

• Speed to Value

  Fractional leaders hit the ground running. They’re ready to move fast on day one. But don’t think that means they won’t stop and listen or gain context. They will. However, it’s important to note that the nature of the role means that fractional leaders are experts at quickly building enough context to start moving your business forward.

Fractional leadership is well-aligned with the Eight Pillars of Agile and Lean Principles, particularly “adaptability” and “efficiency.”
Source: Adapted from “Embracing Agile and Lean Principles for Success”

When hire a fractional leader?

• You don’t know what you don’t know (yet)
  Fractional leadership is an excellent tool for early and growth-stage startups who are still experimenting with what roles they may need to succeed. The variable commitment allows you to experiment, and adapt.

• You’re undergoing a transition

  Sometimes a transition can illuminate gaps on the team. Perhaps you’re ready to go-to-market or looking for a new round of investment. Bringing on fractional leaders with expertise in acquisitions, IPOs, or PE might be the piece to help your organization through this moment.

• You’re leveling up your team

  Sometimes you may want to grow your team internally. First-time leaders can benefit from the mentorship provided by a fractional leader who has “been there before.”

How to prepare to hire a fractional leader

This is where there isn’t a big difference between hiring internally. You need to be prepared.

• Identify Goals, Define Success (and assess!)

  Clearly identify your goals and objectives. And keep track of how you’re tracking toward those goals throughout a fractional engagement. While fractional leaders can often thrive in ambiguity, it’s essential for you (and them) to know why you’re bringing them on.

• (Be ready to) Collaborate and Communicate

  A good fractional executive will be a skilled communicator. For the arrangement to succeed, be prepared for a two-way street. Regular touch-points and collaboration are going to be critical. Your fractional executive won’t be available 100% of the time, you must be prepared to make the most of when they are available.

Ready to hire a fractional leader?

“I have personally leveraged this model in growing Crafted. It is a tremendously valuable stepping stone while maturing a business from one level to the next,” writes Crafted CEO and Founder Adam Oliver.

Crafted offers experienced fractional leadership across the balanced team— including engineering, design, and product management.