Fractional Leadership is having its day right now, but what exactly is it? Well, if you want fractional leadership explained, your best resource is an active fractional leader. This is the first in a series that will aim to explore the major facets of fractional work. What is it, who does it, who uses it, who benefits, how do you know when fractional work is right for you (as the fractional leader or the CEO considering.)
On the surface, fractional leadership is part-time/temporary work for director level and above. Not typically the folks who find assignments through traditional temp or staffing agencies. But it’s much more than part-time/temporary or freelance work. It's also more than consulting. Let's start with a story:
Revenue Turn Around
A client engaged me because they were experiencing revenue stagnation - 4-5 years of under-quota sales, selling enough to cover losses, but resulting in bottom-line growth in the single digits. The ripple effect was flattened employee morale. It's hard to get excited when it seems like the company is flatlining. And when your revenue teams are excited, how are they going to get prospects excited?
There were multiple root causes - sales team had resorted to desperate "sales-y" tactics that weren't resonating with buyers. Marketing was producing content that didn't resonate with the sales team or the potential buyers. Partners were partners in name only and were not referring. Employee morale issues were affecting service.
We started with the lead generation teams. Common goals set between sales and marketing leadership and regular meetings to discuss what content is working and what isn't. Alignment at the leadership level.
Goal setting and coaching for individual sales people. Move an employee to a customer success role, create a proactive strategy to turn around unhappy customers and keep them happy.
Create a partner strategy and start by resetting expectations for partners.
A big project! But with cooperation from leadership and a hard work, we got it done. 90 days of prep before the end of their fiscal year, and after missing quota (by a lot) for 4-5 years, they achieved 132% of quota that fiscal year. Improved client and employee net promoter scores too. Sales solve all problems, as they say!
Nice Story, but how does it work?
A fractional leader will work a portion of their week, or they may even work on an assignment full time for a set amount of time. They can be a resource that strategizes and lays the groundwork for future growth, serve as an interim for a company going through a change, they can come on site to clean things up or reenergize, or they can be considered a permanent member of a team that found its right-size and may never need full-time help in that field. The possibilities are just as limitless as the many unique businesses they serve.
Common Fractional Assignments:
Imagine an executive leaves your company and there is a need to have someone perform the work while a permanent solution can be sourced. When hiring senior leaders, the process can take several months. Can your company operate effectively without a CFO or COO that long? How about the sales team? They might not be able to self-manage that long. A fractional leader can serve in an interim capacity, keeping all the plates spinning until the right executive can be sourced as a permanent member of your team. Give yourself some breathing room because this is a hiring decision you don't want to rush.
If you decide to promote someone already on your team, the fractional leader can also be tasked with coaching them to develop their leadership skills and ensure they succeed in their new role.
Imagine this one - your company is in growth mode and you're getting too busy to do certain things. and there are certain tasks you no longer have the time to perform. But you don’t yet need someone full-time in that capacity. Marketing, accounting, HR, service management and sales are common needs. You could have the benefit of a full C-suite of executives to help you make decisions and plan for the future of your company, at a fraction of the cost.
Perhaps you have already hired some key employees and they may be wearing multiple hats, such as someone in charge of sales and marketing. Instead of waiting until there is enough work to keep another manager busy full-time, you could hire a fractional leader to give them some relief. You could hire a fractional CMO who would strategize and build out your marketing capabilities, while that current manager focuses exclusively on sales.
You're smart enough to know that the tactics that you you to where you are today, are not the same tactics you can use to get to your next level of growth. A fractional leader can consult, strategize, and install programs that will help you enter new markets, go up market, expand nationally, achieve your next revenue target, position yourself for sale, attract investors. The fractional leader can set the stage for the next level of growth, all while your current team focuses on the work at hand today.
No one wants to think about this, but it happens. If there's ever a need to turn things around, a fractional leader can be key to getting through a challenge. Revenue stagnation, employee morale or turnover. A fractional CFO and/or CHRO could diagnose the root causes, create an action plan, and coach your team as needed. Fractional leaders are seasoned executives and generally not afraid of making tough decisions.
Not an exhaustive list, but you get the picture. If you're planning for your next big thing or facing a challenge, a fractional leader could be the resource you need.
Who are Fractional Leaders?
Fractional leaders are often people with a great deal of corporate experience who have either decided to “semi-retire” or consult. Some fractional leaders are in between jobs and do this work in the interim, and might end up staying on an assignment permanently. Help you plan for your next stage of growth, then come on full time and make it happen.
It is because these leaders tend to be so experienced that I think fractional leadership is much more than just part-time senior management or consulting. Fractional leaders generally assume the job requirements and accountability of role they're filling. For example, I work as a fractional revenue leader and I assume responsibility for quota achievement, and also hold sellers accountable for meeting their goals. Fractional leaders have the skillset (and I think the responsibility) to also act as coaches and consultants, and that’s where it gets fun.
I have heard fractional leadership described as “Mary Poppins for the C suite” and it’s exactly that. Come in for a short stay, tidy up and then work your way out of a job. Fractional leaders should be able to install foundational programs and new tech stacks, foster inter-departmental collaborations. Create and execute new strategies, write playbooks, train your existing team.
I have also heard of a fractional leader described as "Swiss Army Knife" and somehow it's exactly that too. I'll use myself as an example. The vast amount of my experience is in revenue growth (sales, partnerships, customer success, and little marketing). I work with some companies that want me to handle it all. And then there are other companies who only need my skill in a specific area. For one client I'm their VP of Sales, for another client their Director of Customer Success, and another one their Partnership Manager. I have come in to address underperforming sales teams, to help transition from owner-led sales, to plan for expanding nationwide, to help solopreneurs learn how to market themselves. If revenue growth is needed, I'll figure it out. And I'm not unique - this is the fractional life!
It's a great symbiotic relationship for a tenured leader who loves taking on new challenges and a company that’s ready for its next stage. The fractional leader tackles an average of 4 projects per year, and they are uniquely qualified to make each of them epic.
Pros/Cons for Fractionals:
The pro for the fractional leader is that they can often forge their own path and work as much as and as long as they want, making money well into retirement years if they choose. Getting to have a positive impact on a company is very rewarding. The downside can be a corporate nomadic life, never staying long enough to form lasting friendships. They will work with many more companies than the average corporate leader and bring those experiences and nuggets of wisdom with them. Fractional leaders learn rapidly and bring those insights with them to their new assignments, building value as they continue. The practice of coming into a company and refining processes quickly will make them much more effective at it than a new hire or newly-promoted leader. They're perfectly prepared for change management. Requiring 4 projects on average per year means they have to be always looking for their next assignment. Balancing the fun of working with a new team and hunting down of their next project is critical. Time management is something they have to master.
Turning Tragedy into triumph:
One of my fractional partners was able to turn a challenge into triumph. Laid off during Covid because their employer went out of business, this leader unfortunately had trouble finding work again. Recruiters often express bias toward "passive candidates", in other words people who are actively employed and not looking. That, coupled with their age, made a job search much harder. We know it's illegal to discriminate based on age, but we all know it happens any way. They noticed that while they weren't getting job offers, people seemed genuinely impressed with their experience. So they decided that rather than continue to look for full-time, permanent work, they'd strike out on their own. As a fractional leader, they're now working 20-30 hours per week, which is all they want. And covering their expenses. They anticipate continuing to work well into what are generally thought of as retirement years, perhaps reducing their work load along the way. And it's not just about working and covering expenses, it's also about being valued, and you can't put a price on that.
Pros/Cons for CEOs and Owners:
For the company hiring them, the benefits are clear as well. For a fraction of the cost (see what I did there?), you can bring a wealth of experience onboard to bring your company to its next stage of growth or get through a tough time. You also save on the benefits and perks package that comes with hiring executives: 4 weeks+ PTO, medical and dental insurance, pet insurance, stock options, etc. Your challenge is that your in-house team might be resistant to change and may not want to listen to the outsider. Sometimes underperforming team members will know this is a temporary solution and will try to “wait out” the project. There may also be a temptation to “return to normal” when the fractional leader is gone.
An acquisition trifecta
Another fractional partner of mine was brought in by an owner who was nearing retirement age and knew his kids had no interest in entering the family business. The fractional leader was a CFO who was tasked with getting the books in order to position the company for sale. The fractional CFO noticed that while the company was profitable, the growth had been stagnant for the last 2 fiscal years. So the fractional CFO recommended the owner also engage a fractional revenue leader. The fractional revenue leader dove deeper and discovered that the sales were coming from inbound leads, with more than a 50% close ratio. There was virtually no outbound sales or marketing efforts, so they also recommended engaging a fractional CMO. Outbound marketing efforts focused of generating demand, sales efforts focused on strategic partnerships, financial strategies focused on making more money with the same budget. In a year, the trio of fractionals setup a revenue-making machine that increased sales and profit. And also created a pipeline that would fuel growth into years to come. The owner was then confident enough to put his company on the market, knowing he would get top dollar and fund the retirement of his dreams.
What do cinnamon rolls have to do with it?
To demonstrate the flexibility and feeling of responsibility, I can only tell my own story. I was recently invited to join Yelp Elite and there was an event my daughter wanted to attend. Free gourmet cinnamon rolls! On a Friday afternoon and about an hour away from home. I needed to take half a day off to make it happen, but I have some clients on retainer and they buy an hour of my time per day. So I took the afternoon off and goofed around with my daughter. And then completed my clients' work on Saturday and Sunday morning while she was sleeping in. I won't make it a habit, but it's nice to have the option. She had fun and my clients were pleased with the work I did - win win!
Now that you have fractional leadership explained, ponder this:
"Have you ever faced a challenge in your business that could have been navigated more smoothly with experienced leadership?"
"What areas of your business could benefit most from the expertise of a fractional leader?"
"Can you imagine overcoming a major business hurdle with the help of a seasoned expert, without the long-term commitment?"
If you have additional questions, please reach out. I'm happy to invest time helping people learn about this emerging trend.
I'm a collector of great stories, as you see. If you have stories about engaging a fractional leader, I'd love to hear them.
Rise of Us is a practice run by Summer Poletti, specializing in revenue growth: sales, strategic partnerships, customer success. We help professional services companies from $2MM - $20MM ARR plan and execute for their next stage of revenue growth. We concentrate on strategy, coaching, and organizational alignment.
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