What Is Fractional Leadership and Is It Right for Your Company?
This phrase has been percolating for a few years now, but it is becoming more common in 2025. No doubt recent economic tumult has made it something to consider in this environment of rising costs and extensive layoffs, but what exactly is it, and why might it be the answer to your current headache? Let’s find out.
What is Fractional Executive Leadership?
Some of you may cringe at a math term coming at you, but in this case, ‘fractional’ may make a lot of sense for your company’s needs - and its current resources. ‘Fraction’ used here refers to a fraction of a full-time employee’s time - and more importantly, salary. And ‘executive’ is, of course, an individual who has decades of valuable experience in CMO, CFO, or other leadership role. See where this is going…
The advent and availability of ‘fractional executives’ (fractional leaders) is a new type of opportunity for companies. Their impact can be immediate but lasting. A start-up or a growing company could benefit from fractional leadership, especially during a critical time, while not committing to the long-term cost. Companies face tipping points, exponential growth periods, or mishaps that would greatly benefit from a ‘fractional executive’ or ‘fractional leader’ who has navigated these issues in her career and knows markets, spreadsheets, rebranding, communications, etc., in a variety of industries across the years.
Consultant vs Fractional Executive
You might be thinking, “Is this just the new name for a consultant?” Or, “How is this different from a consultant?” Good questions. They both have deep experience in a particular area that should help you navigate, for instance, thorny issues, ramp up production during crunch time, or elevate your brand presence as the market becomes crowded. Still, the difference may be in how they achieve results and what those results are.
A consultant is a great outside voice that can bring industry knowledge and, more importantly, perspective and problem-solving strategies that your staff can implement. A fractional executive does all of that and more as a part of your staff. It is a different type of commitment; one is not better than the other, it depends on what you are looking for at this time. You may have the right leadership in place and need an outside expert to drive your team in the right or different direction, or you might want something more ongoing and integrated.
So, Is It the Gamechanger You Are Looking for?
Here are some practical next steps to decide if a fractional executive is right for you.
Identify what type of resource you need
Is it exclusively strategic insight, or do you need someone to roll up her sleeves? Consider whether you want this person to be committed to the outcomes of your business in an ongoing position. Is this a role that your company will benefit from full-time at some point in the future, if only part-time now? How does that change your expectations of this role?
Determine what resources you have to allocate to this individual's salary
Does this fit within your current financial plan? Fractional executives are generally paid via a retainer or hourly rate agreed upon by you and the individual. Not surprisingly, the rates are premium as this is a senior person, expect @$250-$500 an hour, depending on the percentage of time committed weekly agreed upon in the contract.
Assess your current staff
Is having a steady embedded individual better for your staff? Consider whether or not it makes sense to have a leader who can be added to your executive team and be available to problem-solve on a variety of issues with your staff.
Find the right individual
How do I find the right fractional executive? First, look to your network as you would for any open position. While some executives may be familiar with the term, others may not be, so education might be in order (you can send them here to start ;)). Some firms specialize in ‘fractional executives’ now, and a quick search on the term ‘fractional executive’ in LinkedIn brings up a variety of results from newly formed groups to individuals calling themselves by that name.
The Punch Tape Perspective
A rose by any other name…as the saying goes… The title most likely derives from leaders working this way for years without an official name. Fractional executives seem like a great idea and a different way to fill gaps that some companies have, as well as a unique way for individuals to provide their expertise on their timetable. Punch Tape provides services, fractional or otherwise, that deliver the bounce or catalyst that a company needs while we are actively involved and long after our contract has concluded, with practical workflows and assets to continue to implement.
