In today’s economy, small and mid-sized businesses often struggle to afford full-time executive leadership. That’s where fractional leadership — or part-time executives like COOs, CMOs, and CFOs — can make a transformational impact. By offering seasoned experience on a flexible basis, these leaders help organizations accelerate growth and improve operational efficiency.
I recently came across an article in the Harvard Business Review titled “How Part-Time Senior Leaders Can Help Your Business”. The authors were Tomoko Yokai and Amy Bonsall. The article originally dropped on July 2, 2024.
Also, the content then is still good today…
Imagine that you’re the owner of a small business, startup, closely held family owned, non-profit or SME business unit leader. Maybe you believe that the present volume of work doesn’t yet justify hiring a full-time hire. Or in truth, you simply can’t afford it. Maybe you’re struggling to recruit the seasoned, senior-level talent that you need to take your business to the next level. Correspondingly, you recognize that it is time to infuse your business with new ideas, skills, processes and leadership.
What is fractional leadership?
Typically, a seasoned part-time leader be it CFO, COO or CMO has been doing it for 20-30 years. Indeed, a person that blends both strategic and functional leadership with a hands-on approach.
Historically, this realm started first on the financial side. As in, Fractional CFO. Recently, Fractional CMO and COOs have gained traction in the marketplace.
Additionally, while possessing the experience to be a full-time C-level leader, they choose to offer the skill set and expertise to multiple organizations. In 2024, there were over 100,000 part-time senior leaders. Recent advancements in Agentic and Generative AI, normalization of remote work arrangements and reshaped priorities have only accelerated this trend.
As CEO, I need people to tell me what I need to hear
Inside SMBs, it isn’t unusual for power asymmetry to exist, e.g. telling the CEO what they want to hear instead of what they need to hear. A part-time senior leader should be held accountable to initiate difficult conversations. Basically, they perform a dual role as adviser and mentor to other C-level members of the leadership team. Accordingly, a seasoned part-time senior leader should have a wide professional network of professionals. Indeed, they should have been exposed to diverse work methods and processes.
Why SMEs Benefit from Part-Time Executives
A part-time senior leader needs to be intentional about engaging in specific activities that help the organization achieve its objectives. Said differently, the most effective part-time senior leader engagements need not be transactional in nature.
When to Consider Fractional Leadership For Your Business
- Start with the work not the role
- What is the actual need from this part-time senior-leader?
- What kind of investment am I willing to make?
- What are the key success factors for this role?
2. Ensure a good fit
- Manage expectations in regard to the role, its responsibilities, and how it might evolve with the organization’s future growth.
- Particularly helpful to discuss the endpoint of the relationship at the outset.
3. Maintain an effective relationship
- The part-time senior leader must be deliberate and intentional in structuring their time and setting clear boundaries to ensure a focus on only the most essential tasks
- Beware of scope creep.
Transparency and trust are table stakes in this new relationship
If your business is ready to grow but not yet ready for a full-time executive hire, fractional leadership may be the right solution. At The Convergent Group, we help leaders operationalize strategy and accelerate growth through part-time executive expertise.
