Is fractional leadership the way of the future?

The key to success lies in a well-defined organizational strategy, and with that there is a need for an intentional plan around people. It's important to take the time to align on who is best to do the work.  

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Someone in a fractional role is an expert in their field and can take the time to understand the specific needs of your organization and how best to meet them. There is research that indicates (proof points below 👇🏼) how this approach allows your business to stay agile, responsive, and financially savvy in an ever-changing market, adapting their workforce dynamically to meet evolving needs. 

But before we get into it, fractional roles ARE emerging and definitely an option you should consider as a leader! Here are current statistics and predictions for around the globe:  

➡️ United States: Currently, 25% of U.S. businesses have adopted fractional hiring, with this figure expected to rise to 35% by 2025 (Deloitte). 

➡️ Europe: Similarly, around 20% of European businesses have implemented this approach, projected to reach 30% by 2025 (Eurostat). 

It sounds great (and it many cases it really is), but here are two key considerations:  

1. Rooted in Strategy 

The foundation of this approach is a strong strategic plan that clearly outlines the opportunities/challenges and goals of your organization. This clarity is crucial in determining whether a full-time role or a fractional position is necessary. For example, before deciding on a full-time Chief Marketing Officer (CMO), a company should assess whether the challenge at hand is about managing a large volume of work or about creating and implementing more efficient processes for scalability. If it's the latter, a fractional CMO could offer the specialized expertise needed for the task without the long-term commitment of a full-time hire.  

Ask yourself what’s the problem you are trying to solve for and really get down to exactly what kind of support is needed to solve it.  

2. Understand the Proven Value of a Secondary Workforce 

The value of a secondary workforce has been proven as a tried-and-true approach. If you’re on the fence with the idea, below are some studies to from Deloitte, McKinsey, and BCG. If you’re going to implement a fractional role, understanding the benefits and efficiencies is important.  

• Diverse skills & expertise: Deloitte's survey revealed that 70% of companies using a flexible workforce experienced a significant improvement in the diversity of skills and expertise. This diversity is key in building the right skills for the right solutions 

• More streamlined onboarding: McKinsey reports that organizations can onboard specialized skills 40% faster through a secondary workforce than traditional hiring processes. This efficiency is crucial in rapidly adapting to market changes and project needs.  

• Enhanced productivity: BCG found that leveraging a mix of permanent and fractional roles can save up to 30% in labour costs while maintaining or enhancing productivity. 

Bringing on a fractional leader can be a game-changer for businesses. Fractional roles allow for a dynamic and adaptable workforce, suited to the needs of the organization at various stages. It’s about being intentional in how resources are allocated and ensuring that every role and function is strategically aligned with organizational goals.