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The Strategic Power of Fractional Leadership

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.                                                                        Photo by LinkedIn Sales Solutions on Unsplash


A New Series

This is the beginning of a 10-week blog series about how small to medium sized businesses (SMB's) can scale past $10M through fractional leadership. 

You will learn all about fractional leadership and how it can be applied to your SMB to scale to the next level of growth, by bridging the gap to ensure long-term sustainability. 

Even if you are not ready, or convinced, that fractional leadership is the way to go for your business, there will be a lot of practical information that will be applicable to any 1099 employee that you have or are considering for your business. 

I can’t wait to share with you how to grow more profits by risking less resources through the powerful world of fractional leadership.

Let’s get started!


A Leadership Disruption: Introduction to Fractional Leadership

In the ever-evolving landscape of business, the traditional notions of leadership are changing and changing fast! 

This is where the concept of fractional leadership comes in. A concept that not only challenges the conventional understanding of executive roles but also offers a strategic approach to growth with minimized risk. 

Organizations are seeking flexibility, efficiency, and specialized expertise more each year, so the rise of fractional leadership becomes increasingly prominent and more attractive, especially for SMB’s.

So, why do companies need to get more creative with personnel hires, especially leadership positions?

Well, there are a number of reasons:

  • The business market is only getting more competitive.
  • High quality workers with enough, and the right, experience are a high commodity.
  • Everyone is looking for the next big salary and benefits package.
  • It’s hard to get comfortable with the risk that a high 6-figure salary costs these days.
  • Executive leaders are not producers, they are strategic leaders, so they will always recommend that you will need to hire more revenue producing professionals, increasing the investment risk.

I, and the rest of the fractional leadership community, believe there is a better way.


Defining Fractional Leadership

Fractional leadership is a model where organizations engage experienced executives on a part-time or temporary basis to fulfill specific leadership roles. 

This departure from the traditional full-time executive structure allows companies to access high-level expertise without the long-term commitment or financial implications of a permanent executive hire.

The fractional executive, often referred to as a "fractional leader," brings a wealth of experience to the table. These seasoned professionals offer a unique blend of strategic insight, industry knowledge, and leadership skills, providing organizations with targeted solutions to their pressing challenges.

Additionally, they typically are working with more than one company at a time. So, this brings in outside examples, as case studies, to every other client that they work with. 

This is built in market research.

Finally, you will be able to use the cost savings to hire revenue producing professionals to grow your profits!

In short, fractional leaders create a win-win situation for their clients.


A Brief Historical Perspective

The roots of fractional leadership can be traced back to the early consulting models of the 20th century. 

However, it was in the last two decades that the concept gained traction, fueled by the changing dynamics of the business environment. The rapid pace of technological advancements, market fluctuations, and the need for specialized skills have all contributed to the flourishing of fractional leadership.

In the early stages, fractional leadership was primarily associated with interim executives filling temporary gaps in leadership. However, as businesses recognized the broader advantages of this model, fractional leaders began to play a more strategic role, influencing long-term decisions and driving growth strategies, and empowering revenue-producing employees to increase their production and ultimately the company’s profits.

Not to mention, the COVID-19 pandemic in the U.S. (March, 2020 - January 2023) has disrupted the economy so much that fractional leadership has been kicked into overdrive. Companies today can’t always throw money at a situation anymore and hire someone for a lot of money and hope it works out for the best. 

They have to get creative and nimble to keep profits high and expenses low, especially SMB’s. Or else they may not be able to survive.


The Rising Trend

The adoption of fractional leadership is not confined to a specific industry or company size. 

Organizations of all types, from startups to established enterprises, are recognizing the benefits of this agile approach. 

I’m a part of, or connected to, several fractional leadership communities and agencies that are training and placing fractional leaders to be able to keep up with the demand to help SMB’s not only survive but thrive in a new way for years to come. 

This is why.


1. Flexibility in Leadership Structure

Fractional leadership offers a level of flexibility that is crucial in today's dynamic business environment. 

Organizations can scale their leadership resources up or down based on their current needs, responding swiftly to market changes or internal transitions.

Also, if your fractional executive is “worth their salt” then they will tell you when you need them or not or how you can save money.

This is the heart of the fractional leader. 

They want to help and serve a purpose first and only work with companies that need them because they understand how important it is for SMB’s to thrive in today’s global economy.


2. Cost-Effective Solutions

Engaging fractional leaders can be a cost-effective strategy, especially for organizations looking to access high-level expertise without the financial commitment of a full-time executive salary and benefits package. 

This model allows companies to allocate resources more efficiently, directing funds to areas that directly contribute to growth.

As I mentioned earlier, when you go with the fractional option you have room in your budget, from the salary savings, to hire more income producing employees. A perfect win-win situation.


3. Specialized Skill Sets

Fractional leaders bring a depth of expertise in specific areas, allowing organizations to address critical challenges with precision. 

Whether it's navigating a complex regulatory issue, implementing a tech overhaul, or leading a strategic initiative, fractional leaders offer targeted solutions that may be challenging to find within a traditional executive leader.

In addition, fractional leaders are highly networked to reach out for advice, counsel and support, if needed.

Another win-win situation!


What to Expect

As I dive deeper into the upcoming blogs, I will show you the intricacies of fractional leadership. 

From sharing the role of a fractional executive to navigating the challenges and measuring success. It’s my goal to provide a comprehensive guide for organizations considering or already implementing fractional leadership.

Will you join me on this journey? 

You may just see the potential of fractional leadership that could drive your business to sustainable success with less and calculated risk. Or, you may know someone that this model could change the trajectory of their business, forever!

Either way, I hope you’ll join me for the next 9 weeks!

Enjoy the Process!

Grow more. Risk Less


How I Can Help you Grow More & Risk Less