Fractional Executives: Leadership-as-a-Service, CXOs, White-Label Solutions

โ€‹โ€‹โ€œHire people who are better than you are, then leave them to get on with itโ€ฆ Look for people who will aim for the remarkable, who will not settle for the routine.โ€ โ€”David Ogilvy

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โ“ What You’ll Learn

  • How to scale your talents as a fractional executive?
  • How to reduce your time to hire
  • How to improve your lifestyle with flexible employment
  • How to find KPIs for fractional executives to focus on? 
  • How to save time and money with a fractional executive?

๐Ÿ’Ž Why It Matters

You can work with experienced executives on an as-needed basis.

๐Ÿ” Problem

You need expert help. But canโ€™t justify the cost of hiring for a full-time role.  

๐Ÿ’ก Solution

Find a fractional executive and only pay for what you need.

๐Ÿ Players

Fractional Executives

Hiring Platforms

๐Ÿ”ฎ Predictions

  • Fractional executives will offer white-label solutions for common needs.

โ˜๏ธ Opportunities

  • Reduce time to hire. Fractional executives can be hired quickly and save months of recruiting time.
    • MVP Health Care Inc. pivoted to telemedicine. They needed to go to market without waiting to find the โ€œrightโ€ CMO candidate. Arlyn Davich joined as fractional CMO to develop their marketing strategy immediately. 
    • The CTO of A.T. Cross quit unexpectedly. They hired a fractional CTO to solve critical systems issues and improve projects left in disarray.
    • Joyce Ripianzi, CPA is a fractional CFO who joined a nonprofit in urgent need of a CFO. They realized they didnโ€™t need a full-time CFO in the first place.
  • Become a fractional executive to improve your lifestyle with flexible employment.
  • Hire a fractional executive to automate workflows to save time and money.

๐Ÿ”๏ธ Risks

  • Short-Term Mindset  โ€ข Make sure that your fractional executive optimizes for long-term success. Short-term incentives harm long-term success.
  • Bad Fit โ€ข The executive you hire might not be right for you or your business. You may need to try multiple executives before finding the ideal team member.
  • Team Buy-In โ€ข Your team needs to understand and accept the value of a fractional executive.

๐Ÿ”‘ Key Lessons

  • Learn from them. Fractional executives should be knowledgeable executives who have been in your shoes before. Solicit advice and input. 
  • Hire specialists. One advantage of working with fractional executives is that you can hire a wider breadth of team members.
  • Integrate your fractional executive with the rest of the team. An executive will have a stronger impact if they have visibility into how the team operates.

๐Ÿ”ฅ Hot Takes

  • Fractional executives will accelerate the overemployment trend. Executives will overwork themselves to maximize income.
  • Fractional executives will create niche job titles. In-demand workers will be incentivized to commoditize and sell their best skill to as many businesses as possible.
  • Fractional executives will avoid office politics. They will be more focused on getting the job done with limited time.

๐Ÿ˜  Haters

โ€œHow is a fractional executive better than hiring an agency?โ€
Fractional executives take on more responsibility than an agency. They take full ownership and act as a point person for areas of your business like budget-setting, hiring, firing, and building processes. They should be held more accountable than an agency.

โ€œFractional executives donโ€™t have the same impact as a full-time employee.โ€
Itโ€™s true that they cannot make the same time commitment. In many cases, fractional executives will have a greater impact on a per-hour basis. 

โ€œFractional executives wonโ€™t understand my company as well as I do.โ€
They arenโ€™t supposed to. Fractional executives have specific skills which can be used in a variety of businesses. You and your full-time team members know your product inside and out. Specialists should be used to leverage that knowledge.

โ€œIsnโ€™t this the same as hiring an interim executive?โ€
No. Interim executives are hired on a full-time but temporary basis to effect immediate change until permanent leadership is found. Fractional executives are part-time leaders who should be working toward the long-term success of your business.

๐Ÿ”— Links

  1. Examples of Fractional Executives โ€ข The tweet behind this report. 
  2. How a Fractional Chief Operating Officer Can Help Your Business Grow Sustainably โ€ข A guide to hiring and correctly utilizing a fractional COO.
  3. What Makes Fractional CIO Engagements in SMEs Successful? โ€“ A Research Framework โ€ข Academic research on analyzing the success of a fractional CIO.

๐Ÿ“ Related Reports

  • Remote Work โ€ข Remote work is accelerating the fractional executive trend.
  • Consulting โ€ข A fractional executive is similar to but less engaged than a consultant.
  • Agencies โ€ข Many fractional executives transition to running agencies.
  • Productized Services โ€ข A fractional executive is an example of a productized service.
  • Personal Brands โ€ข Succeeding as a fractional executive requires the cultivation of a strong personal brand.

๐Ÿ™ Thanks

Thanks to Tem, Stewart Townsend, Wit S., Swapnil Puranik, Yarty, Vikrant Duggal, Ron Immink, Maciej Cupial, and David Steinley.We had a great time jamming on this report.

โœ๏ธ Harry researched and wrote this report. Dru researched and edited this report.

๐Ÿ“ˆ What else?

Trends PRO #0099 โ€” Fractional Executives has more insights.

What youโ€™ll get:

  • 30 Fractional Executives and Hiring Platforms (114% More)
  • 10 Predictions (233% More)
  • 15 Opportunities (275% More)
  • 6 Risks (100% More)
  • 4 Key Lessons (133% More)
  • 6 Hot Takes (100% More)
  • 11 Links (333% More)

With Trends Pro youโ€™ll learn: 

  • (๐Ÿ“ˆ Pro) How to get help fundraising?
  • (๐Ÿ“ˆ Pro) How to land a full-time job from a fractional role? 
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  • (๐Ÿ“ˆ Pro) How to promote yourself as a fractional executive?
  • (๐Ÿ“ˆ Pro) How to buy time to focus on higher-leverage activities?
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