Expertise-as-a-Service (EaaS)
The rise of the fractional leader
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Friends,
It must be a sign of the times, or a figment of my old age that many of my peers are considering or have, in some cases, been operating as fractional leaders in their various fields.
Last week I covered Time-as-a-Service - and this week I want to touch on Expertise. Fractional Leadership roles have erupted over the past 5 to 10 years. I don’t see them as anything new but the trend of them growing is interesting. Essentially, these roles (Fractional CMOs, Fractional CFOs, Fractional CTOs, Fractional CIOs etc.) are part-time senior positions that smaller or growing companies leverage to support their growth. In the past they would have been called “Part Time” CXOs - and operate in that way, but the pandemic has got companies valuing the expertise. It’s also got the experts valuing their time and diversity of roles choosing where to learn and where to apply. It’s become a win-win. And potentially changes the operating environment at the workplace.
I’ve seen a bunch more “fractionals” over the past couple of years. I think it’s important to differentiate, however, the various roles that get confused with these fractionals:
Advisors / Non-Execs: In the realm of organizational effectiveness, Advisors play a pivotal role by providing invaluable insights and guidance, leveraging their expertise and specialized knowledge to contribute to a company's success. This distinctive operational prowess demonstrates a wealth of critical knowledge that directly influences the company's achievements. Advisors could offer this expertise on a quarterly or monthly but rarely get involved in the day-to-day. I see this more as governorship, helping to steer, providing guardrails but never getting their hands dirty.
Consultants: Similarly, consultants provide advisory expertise, but usually these are focused on specific areas of execution. Usually, this is more of a short-term interim type position, paid for time served rather than for expertise.
Fractionals: I like to think that fractional roles are senior-type execs, C-level and fill in an important role, on a part-time basis for a company. As work changes and specialists start to become useful in a rapidly changing world, fractional support will become important for companies at turning points. Fractional experts will help organisations level up in areas where they didn’t know they needed it.
So what? The reason why these roles become important is because of new ways of working, and the advent of AI. There will be much knowledge sharing and application over the coming years. I think these fractional roles will start to become more specialist. For example, an F-CMO looking at scaling an organisation for AI. What are the right metrics to think about, the right channels and how much does that next customer cost? Equally, I can see an F-CFO setting up an organisation for hybrid working, capital efficiency, and raising seed investment and debt for growth. These are roles that a smaller organisation might not need or be able to afford in a traditional organisation.
Fractional leadership transcends mere cost-saving. These executives introduce a different outlook and years of expertise to your enterprise, aiding in the recognition of avenues for expansion and the surmounting of obstacles.
Why is the trend interesting? The forthcoming era of fractional leadership is poised to be profoundly influenced by AI. Empowered by AI-driven instruments, fractionals will (and will have to) harness data-derived revelations to arrive at better-informed conclusions, discern patterns, and predict shifts in the market that will give the companies that they work for the edge. This technological advancement will enable them to deliver heightened value during and the years after their original part-time secondment.
For me, the real benefit of having a fractional in your team for a short period is to rev your engine a little, to get unbiased and objective perspective, take unique skillsets and knowledge transfer and to level up the team and org. They are also free from the politics.
This rebrand of the part-time CXO has come at the right time as the world shifts into a new gear. The smaller and growing companies will need the expertise of the right pillars in the organisation in order to continue to grow.
Stay Curious - and don’t forget to be amazing,
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