Bringing on seasoned leaders in “fractional” roles can help companies gain expertise without the expense and commitment of a full-time hire.
July 02, 2024
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Technological innovation, advances in remote work, and reshaped post-pandemic priorities have led to companies hiring fractional leaders, or part-time senior talent, to occupy key leadership roles. These leaders, who typically have 20 to 30 years of experience, blend strategic and functional leadership with a hands-on approach, and they offer their skills to multiple organizations, typically startups or small and medium-sized enterprises. The arrangement enables organizations to benefit from senior leadership without the expense and commitment of a full-time hire, and it allows senior executives both career flexibility and stability. This article looks at the pros and cons of fractional leadership and outlines three crucial conversations to have before engaging in this kind of arrangement.
As organizations look to reinvent themselves to spur growth, they often seek to acquire senior talent who can infuse new ideas, skills, and leadership within the organization. However, hiring and retaining senior talent is fraught with challenges. Furthermore, small and medium-sized organizations often struggle to access and afford the senior talent necessary for driving growth.
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Tomoko Yokoi is a researcher and advisor at the TONOMUS Global Center for Digital and AI Transformation at IMD Business School. She writes and speaks on the impact of emerging technologies on organizations and work. She is the co-author of Hacking Digital: Best Practices to Implement and Accelerate Your Business Transformations.