For decades, companies have explored different operating models to drive cost-effectiveness and efficiency.  Successful businesses must be flexible, innovative, and nimble.  

 

Since the 1980's, entire departments were "outsourced" to firms that specialized in key functions like IT, Marketing, Finance and HR.  The goal was almost always focused on efficiency and cost reduction while enabling the enterprise to focus on its core business. 

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The fractional model does not "outsource" key functions but instead embeds an experienced leader on a retainer basis to manage a specific function from within the company.  The fractional leader model enables smart, efficient and scalable business growth. 

 

Key characteristics of the fractional model:

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• Works with leadership team on retainer basis

• Accountable for plans developed with business stakeholders

• Provides rapid access to experts with proven experience in critical functions like Sales, Go-to-Market, Marketing, Strategic Alliances, Finance, HR, IT, and Supply Chain 

• Supports business transformation and bridges leadership gaps

• Scales to needs of business and aligns with budget

• Manages specific functions or initiatives based on business priorities  

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​The fractional leader model is gaining traction because companies can quickly engage leaders who have proven experience delivering tangible and positive results for businesses.  And because fractional leaders join the company on a retainer basis, the cost is 50-70% less than onboarding a full-time employee. 

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Companies need executive capability even when budgets are constrained or hiring is paused.  The fractional model enables companies to achieve growth while remaining agile.    

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​Bottom line -- the fractional leader model is rapidly becoming an important part of the overall HR strategy. ​​ Adoption of the fractional leader model will likely accelerate as companies of all sizes (in all industries) realize this model enables smart and efficient business growth.