Fractional Leadership is Trending, But That Could Be a Risk

The idea of “Executives on Demand” has become incredibly popular. Single-person consultants, staffing firms, and online marketplaces are eager to rebrand themselves as “fractional executives.” But, as the trend grows, so does the risk of hiring someone without true executive credentials.

A recent business article boldly stated, “The Future is Fractional,” with more startups and scaling companies turning to interim, part-time, or project-based leadership to tap into experienced talent without the full cost of a permanent executive. It’s appealing—having a top-tier CFO, CTO, or CMO for just the hours you need them. But with 2024’s unpredictable business landscape, the market is seeing an influx of freelancers, life coaches, and even some unemployed managers, all repackaging themselves as “fractional executives.”

Here’s how to assess the quality of a fractional executive to ensure you’re hiring a true leader, not just a consultant with a new title.

1. Understand What Makes an “Executive”

A director or VP is not the same as a C-suite executive. True executive experience involves leading organizations through significant, strategic decisions. With the recent corporate layoffs, many directors and VPs are joining the consulting ranks, but their experience may not reach the depth you need.

Check their background on LinkedIn and their resume carefully. Look for evidence of hands-on C-suite roles in multiple organizations. Some firms, like TechCXO, for example, ensure that all their partners have held executive roles at multiple companies. Beware of freelancers who claim “executive” status but lack real strategic experience. To test their knowledge, ask broad questions about target customers, pricing strategies, and market positioning—and listen closely.

2. Clarify What “Success” Looks Like

Executives should bring measurable results to the table. If the goal of your business is a successful exit or capital raise, look for fractional executives with experience in M&A, IPOs, or similar high-level achievements. For executives in roles like marketing or HR, ask for hard data on past contributions, such as revenue growth, product launches, or profitability improvements.

Testimonials are helpful but can lack context. Instead, ask for real examples where they tackled complex problems, scaled an organization, or opened up new market opportunities. If possible, request to speak with former clients directly to hear about their contributions firsthand.

3. Scrutinize the “Team”

Beware of small or single-person operations. Some smaller firms or marketplaces might conceal their size, implying they have more resources than they do. Check the team bios on their site—look out for generic or recycled bios. A legitimate organization will show a variety of skill levels and functions, from C-level talent to managers who handle day-to-day tasks.

You want a partner with a true bench, not just a temporary placement. Watch out for staffing firms that tout “extensive networks” but simply fill gaps without offering a collaborative, cross-disciplinary team. A well-rounded fractional team can provide a blend of roles—like a CFO-level strategist with an Accounts Receivables manager—to ensure your business gets top-tier strategy without paying for executives to handle routine tasks.

4. Seek Out Flexible Delivery Options

Traditional retainers or per-project pricing are common but can be limiting. Look for fractional executive firms with innovative pricing models, like equity-based options, mentoring and coaching, or training-focused engagements. A flexible firm can adapt to your business’s changing needs—whether that means recruiting, lead generation, or capital-raising efforts.

Fractional leadership may be the buzzword of 2024, but for reputable firms, this model has stood the test of time. Before hiring, take the time to ensure you’re bringing on an experienced, adaptable executive who can truly drive results.

If you enjoyed this post, check out my thoughts on other workplace trends and how small operational tweaks can have a big impact (https://accelebron.com/executive-insights/)