Summary
“You get a high-level strategic executive thinker that you might not need on a daily basis.”
Abby Sugar
Associations are member-driven, volunteer-led, practical organizations. We have unique business and governance models, different from private companies, government entities, or even nonprofits (despite our somewhat similar tax status).
As scrappy and creative as we are in connecting people and building community, we can be traditional and siloed in our approach to change, growth, or evolution. One way of breaking from this cycle is to bring new energy, new ideas, and new expertise into our organizations.
Fractional leadership is a formal infusion of expertise to fill a capability gap; more specifically, it is a model where executive-level roles are filled by people working part-time or on a fractional basis, rather than a single full-time employee.
In associations, fractional leadership can be applied to various roles, such as learning officer, strategist, attorney, or product officer. I lead the product community, which is a product development learning community designed specifically for associations.
Why Fractional?
“Traditional full-time employment is no longer the norm. The accelerated change in the workforce over the past few years has driven the rise of the fractional employee. These workers engage in part-time or temporary positions, reshaping industries and significantly impacting the economy.”
Cheryl Robinson – Forbes, December 8, 2023
Fractional leadership is a value-based employment arrangement where an organization hires highly experienced professionals on a part-time basis to fill critical executive roles. These professionals typically work for multiple organizations simultaneously, sharing their time and expertise across different clients or engagements.
Fractional leadership is hot. This is partly due to COVID, partly due to changing work trends, and partly due to the need for new talent models to navigate a rapidly changing world.
According to Fractionals United, fractionals bring:
Senior-level domain expertise
A strong record of leading people and organizations
Outcomes based on capability-building to drive sustainable growth
Accountability for business results, while operating on retainer
Trusted leadership at a fraction of the time and cost of a full-time leader
There are, of course, pros and cons to fractional leadership.
Pros of Fractional Leadership
Access to High-Level Expertise – Associations can benefit from the skills and experience of seasoned executives without incurring the full-time cost associated with hiring a permanent, full-time employee.
Flexibility and Cost-Effectiveness – Fractional leadership allows organizations to scale their executive resources up or down based on their current needs and budget constraints.
Fresh Perspectives and Objectivity – Fractional leaders bring an outside perspective and objectivity, which can be valuable in identifying new opportunities, addressing challenges, and driving innovation.
Specialization and Focused Expertise – Fractional leaders can be hired for specific roles or projects that require niche expertise, such as learning and development, strategy, or product management.
Cons of Fractional Leadership
Potential Lack of Continuity – Employing multiple fractional leaders can lead to inconsistent decision-making, communication, and organizational culture if not managed properly.
Limited Availability and Divided Attention – Fractional leaders may have limited availability and divided attention due to their commitments across multiple organizations.
Integration Challenges – Integrating fractional leaders into the existing organizational structure and ensuring effective collaboration with full-time staff can be challenging.
Confidentiality and Loyalty Concerns – There may be concerns about confidentiality and loyalty when fractional leaders work with multiple organizations, particularly in competitive environments.
Despite these cons, I argue that fractional leadership can be a win-win for associations looking to evolve its business model or to meet evolving workforce needs. This graphic puts fractional into the context of other work models. Here we see that fractional is quite different than gig work, freelancing, consultants, or hiring a vendor.
So what might fractional look like for an association? We will now explore some possibilities.
Examples of Fractional Roles in Associations
“This new work paradigm is not only possible — it’s the foundation for the next era of knowledge workers.”
Bethany Crystal
Unattached: The Next Era of Knowledge Workers
Fractional leadership is distinct from other employment arrangements, such as contract work, consultancies, part-time employment, freelancing, or association management companies (AMCs).
Contract workers and freelancers are typically hired for specific projects or tasks, while fractional leaders assume executive-level roles and responsibilities within the organization. Part-time employees have a more traditional employer-employee relationship, albeit with reduced hours.
AMCs, on the other hand, provide comprehensive management services to multiple associations, often acting as a full-service executive team. Somewhat similarly, a fractional executive director, working on a serial part-time basis, could lead the overall management and strategic direction of multiple associations.
Though this graphic suggests fractionals are separate, the most effective way to leverage strategic part-timers is to embed them in team functions so they help drive business results and healthy culture.
Here are some examples of how an association might utilize a fractional approach to fill its talent gaps, supercharge areas of weakness, or prepare the association for change and evolution. The types of fractional leadership roles are nearly endless.
Fractional Learning Officer – Responsible for developing and implementing educational programs, training initiatives, and professional development opportunities for the association's members.
Fractional Strategist – Provides strategic planning, market analysis, and guidance to the association's leadership team, helping to shape the organization's long-term vision and goals.
Fractional Product Officer – Responsible for building a strategy and roadmap and managing the association's product portfolio, including membership offerings, publications, events, and other revenue-generating products or services.
Fractional Budget Officer – Responsible for overseeing the association's financial planning, budgeting processes, and financial reporting. They would work closely with the leadership team to develop and monitor budgets, analyze financial data, and ensure effective resource allocation.
Fractional Sales Officer – Leads the association's revenue generation efforts, including membership sales, event registrations, and sponsorship opportunities. They would develop and implement sales strategies, manage sales teams (if applicable), and drive revenue growth.
Fractional Technology Officer – Oversee the technology infrastructure, digital platforms, and information systems. They would be responsible for evaluating and implementing new technologies, ensuring data security, and leveraging technology to enhance member experiences and operational efficiency.
Fractional Human Resource Officer – Manages the association's HR functions, including talent acquisition, employee development, compensation and benefits administration, and compliance with labor laws and regulations.
Fractional Attorney – Provides legal counsel and guidance to the association on various matters, such as contract negotiation, regulatory compliance, intellectual property protection, and risk management.
Fractional Development Officer – Lead fundraising and donor relations efforts, including grant writing, major gift solicitation, and donor stewardship programs.
Fractional Marketing Officer – Oversee the association's marketing and communications strategies, including brand management, content creation, public relations, and digital marketing campaigns.
These fractional roles can be beneficial for associations that may not have the resources or need for full-time, dedicated staff in these areas. By leveraging fractional expertise, associations can access specialized skills and knowledge on an as-needed basis, allowing them to remain agile and cost-effective while still benefiting from high-level expertise.
It’s important to reiterate that fractional leadership is not an hourly-driven, tactical labor model; it is also not a replacement for full-time staff. Fractional leadership is an approach for supercharging your capabilities affordably, efficiently, and in-tune with your culture.
New Rules of Engagement
“To stay competitive, we must continually attract people with the latest skill sets.”
Michele Cefola
The world of work is evolving rapidly. Professionals are less satisfied with a traditionally-bound, forty hours a week, tied-to-a-single-employer work life. Highly-skilled professionals increasingly desire more flexible work arrangements.
Associations can extend our capability for a lower cost and less risk. Consultants can be great, freelancers can fill a need, interim leaders can keep things running, but fractionals can make a difference.
Associations are wise to take advantage of the talent pool available to work on a fractional basis. Fractional can draw younger professionals, working parents, and uniquely talented niche employees who think integratively and provide differentiated value.
I lead the product community; we are a learning community because we believe great relationships help us create the value our members want. Remember, product-led growth fuels connection. Join the product community and flip your destiny.
About the Author
James Young is founder and chief learning officer of theproduct community®. Jim is an engaging trainer and leading thinker in the worlds of associations, learning communities, and product development. Prior to starting the product community®, Jim served as Chief Learning Officer at both the American College of Chest Physicians and the Society of College and University Planning. Please contact me for a conversation: james@productcommunity.us