There’s no such thing as a perfect business model, just as there’s no such thing as a perfect executive. Finding your business being stuck in a rut is not an isolated problem, but one that is often faced by many entities. But do they get out of it? The answer is yes, and fractional leadership is one of the things that many businesses have been applying to address these woes.
This kind of business strategy has long been implemented, says Venkattesh R, former president of DCB Bank in India. He clarified that while the term itself may sound new, the application has already been adopted by many businesses, albeit in different forms.
So how does fractional leadership work? According to HR Katha, this kind of leadership in the executive level allows businesses to hire a seasoned professional quickly without going through the tedious HR process that are normally faced by regular hires. This means that as soon as a problem arises, the company can find someone with the right kind of skillset and experience to answer the issue in the quickest manner as well. This new exec can then provide the needed interventions.
This work model does not only apply to large companies, but could also be used for startups and SMEs. Once implemented, it provides a two-pronged benefit for the entity. First, the company enjoys the expertise that the executive can bring in, and it is also cost-efficient since the setup does not require that the same benefits that full-time executives enjoy, unless perhaps, if the latter would demand for it.
Venkattesh explained that fractional leadership “ensures immediate fulfilment of talent requirements.” He also emphasized that the scheme allows “deep skill and experience” to be brought by the leader to the company, which may not be readily available at the disposal of the latter.
Fractional leadership is not merely a temporary solution, but could pave the way for the company’s growth. An example is providing a transitory process for retiring executives where they would be given fractional roles in the company. This allows the company to still make use of the institutional knowledge of the leaders, and at the same time it will open doors for new leaders to find their place in the company. The leaders could then act as mentors to new executives and will serve as their guide in navigating the complex challenges that hound the business.
“It ensures continuity and leadership development while serving as institutional builders, advisors, or even board members,” Jaikrishna B, president and group Chief Human Resources Officer, Amara Raja
While fractional leadership offers a lot of benefits for the business, it is not without a drawback. For one, the leaders could not fully immerse themselves in the operations of the company since they are often attending to multiple entities. Another is hurdle is the cultural divide since leadership would require an immersion into the culture and goals of the business.
On the overall, fractional leadership is a sound business practice that can be applied. However, one must also weigh the pros and cons of the not-so-new concept.
