The benefits of fractional leadership

The concept of hiring fractional leaders might be new to some, and like any concept rapidly gaining momentum, its sense of purpose varies. In most definitions, there’s a belief that the model applies to C-suite placements, but this article is focused on what fractional or flexible leadership can look like at different levels. Installing a fractional leader can both increase organizational resilience and reduce financial risk associated with increasing overhead.

In either scenario, the gap filled – either for thought leadership or interim management – won’t be needed forever.

Relieves financial pressure

When your groups’ revenue and growth goals are unmet, it can be in part due to gaps in people resourcing. When a pivot is required, tenuous hiring processes of top tier, salaried talent can impact financial performance.

Fully-loaded headcount is typically 30% higher than salary alone, depending on your company’s unique multiplier. The fixed cost of salaried employees includes the hiring and onboarding period of around 12 months. A business commits to that expense, even when there’s risk in the need for certain role types being inconsistent over time. With fractional support, you can scale your workforce up and down more easily.

Increases organizational resilience

The pressure of meeting targets doesn’t relax just because of transition due to a vacancy in leadership or upon discovering that you need more specialized expertise.

Attrition is a real detractor to organizational resiliency and when a leader departs, an individual from the working team might be assigned as an “interim”. An employee tapped to assume this role is typically well-regarded, or they wouldn’t have been considered for the expanded duties. The risks in this model are that the valued employee’s primary contributions become diluted, or dissatisfaction arises when they are moved “back” to their original post.  

Two types of fractional leadership support

Specialized thought leadership

Dedicated space for thought leadership from within is often taken up by day-to-day efforts to stay on top of revenue goals and there might be a need for a strategic advisor for a planning cycle. Perhaps a specific event or project, re-organization or implementation is on the horizon for your group. As an example, you might wish to set up your marketing team as an Agile Marketing Cell, working in sprints to deploy deliverables and campaigns.

Interim team management

In times of transition or after the sudden departure of talent, a fractional leader keeps the ship steering in the right direction, with minimal disruption to work in progress. In this instance, financials or costly attrition can be carefully watched. If a new approach to staffing is needed, this interim leader is pivotal in helping map out the next steps, because they have observed the team’s processes, strengths and opportunities.

When fractional leadership adds the most value

• A fresh, outside perspective is needed and the group embraces critical thinking

• The risk of rushing to hire or re-hire is high and immediate support is required

• Elevating an interim leader from the working team destabilizes ongoing work

• The fractional leader is part of a thoughtful transition plan beyond their tenure

Martech Consulting Group's offering

Our fractional leaders have deep expertise in the functions of end-to-end Marketing, Sales Operations, General Management and Product Management, and will structure the strategy to adapt to your unique environment. When rapid culture change is required, our approach favors disruption, and the length of the engagement or hourly commitment each month can be easily customized, depending on your need.

If you’d like to explore the benefits of fractional leadership, please submit your contact details or email us directly at business@martechconsultinggroup.com.