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Not seeing the results you are after? Missing the experience needed by leaders in your organization? Maybe it’s time for a fractional executive, which could be a fractional chief operating officer, chief marketing officer, chief financial officer, or even a fractional content marketing leader.
To discuss how an engagement with a fractional executive can work, I’m joined by Ben Wolf, a fractional COO, on Episode 643 of “The Business Storytelling Show.”
We discuss:
- How do you know you need a fractional executive?
- What are the advantages?
- What are the potential disadvantages?
- And more…
Hiring a fractional executive can make sense in a number of situations, including:
- Startups – founders see the need for a specific leader but don’t have the need or budget for a full-time executive
- Expertise gap – some companies might just be missing the expertise altogether to know how to get teams to level up. A part-time leader can help with the right strategies, which aren’t currently known to the necessary depth within the organization.
- Speed – bringing on people full-time can take time. Traditional onboarding doesn’t happen with part-time leaders. Sure, they still need to understand the company and market, but the equivalent of onboarding looks different.
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Things to consider
While there are certainly many positives, it’s also good to remember that fractional executive services come with a price tag. You likely will be paying a higher “hourly” rate when compared to a full-time employee, but you are paying for their experience and knowledge to help you move forward quicker and strategically.
Fractional executives are not full-time employees. They have so many fractional time periods available and certainly fill them with different clients. You are one of those clients, so it’s important to remember that they likely cannot respond and react like a full-time executive sitting in the office next door to you.
How to work with a fractional executive
When working with a fractional executive, communication and alignment are key. Schedule regular check-in meetings, ideally weekly, to set clear goals, provide updates, discuss challenges and brainstorm solutions. Use these meetings to align on priorities and ensure you are getting the most value from the engagement.
In between meetings, have team members log non-urgent issues to discuss at the next check-in. This allows the fractional executive to focus and be productive. Of course, for truly time-sensitive matters, make them known right away.
Implement project management best practices. Identify key milestones and measurables for success upfront and evaluate progress transparently in your regular check-ins. Empower the fractional executive to manage their workload and focus their time on the areas of highest impact.
Keep communication open with your team. Have your fractional executive meet with team members early on to understand roles, processes and pain points. This builds trust and enables them to quickly provide effective guidance and leadership.
How to choose a fractional executive
First, identify the area within your business causing the greatest pain and assess where experienced leadership could provide the most impact. This determines what type of fractional executive you need – CMO, CTO, CFO, etc.
Vet several potential fractional executives. Have exploratory calls to assess their experience, approach, expertise and communication style. Ensure they have leadership backgrounds scaling similar businesses or teams. While exact industry experience isn’t always necessary, some relevant background is ideal to minimize the learning curve.
Ask how they structure engagements. Monthly retainers and project-based billing are common. Ensure the structure, involvement level and contract terms align with your needs and expected outcomes.
Evaluate culture fit. Your fractional executive will be interacting often with leadership and team members. Ensuring aligned values and personality fit reduces friction and improves the working relationship during the engagement.
Check references to confirm they delivered success for other clients. Past performance and a proven track record reduce execution risk.
How to know you need a fractional executive?
There are a few key signals indicating it may be time to bring on a fractional executive:
You need experienced leadership and strategic guidance to continue scaling up the business, but hiring a full executive team isn’t feasible yet. Your budget, stage of growth or business model mean fractional is a better fit.
You have capable managers heading up departments, but lack an experienced voice to lead the leadership team and align efforts company-wide. A fractional executive who oversees key areas can fill coordination and strategic planning gaps.
You’re overwhelmed as a founder or CEO trying to self-manage all parts of the business. You need an experienced operator to share the burden so you can focus on higher-level strategy and vision.
Your team relies too heavily on you pushing and directing to make progress on business priorities. They lack accountability or the experience to work autonomously. A fractional executive mentors managers, implements accountability structures, and builds capacity.
You have a specific business need requiring specialized expertise your team lacks. An experienced fractional executive consultant can provide missing strategic or operational experience.
If one or more of those issues describes your current situation, a fractional executive can inject leadership experience and strategic direction to help you improve performance, outcomes and growth trajectory.