TWO LEADERS, ONE QUESTION

05.07.24 | Jo McKinney

Does Fractional Leadership Work?

As an ex-CEO, I know too well the complex calculus that goes into building a team to drive growth for a company. Often, leaders face a tough decision: hire the seasoned exec you know you need but can’t afford, or settle for a less experienced hire who fits the budget. In the startup marketing space, this issue is made even more complex given the diverse roles a CMO needs to fill—from deep strategic chops to creative and design, commerce, lifecycle, media buying, and analytics. If you’ve read a CMO job posting recently, you can see how layered and seemingly impossible the needs really are.

My recent experience as a fractional CMO at Elemind Technologies, Inc. , and my conversation with its CEO, Meredith Perry , shed light on a powerful and recently popular answer to this dilemma: fractional leadership.

Searching for a Unicorn: Meredith was deep into the challenge described above, initially seeking a marketing leader who could wear multiple hats effectively. She was “understandably looking for a unicorn, which I think a lot of startups also have to look for because of the nature of the business. I was looking for someone who could play the role of multiple people, and that's so hard to find for so many different reasons."

The Fractional vs. Full-Time Dilemma: Like many CEOs, Meredith was not looking for a fractional partner and was initially hesitant. Budgetary limitations were a concern, but so was the fear of a less-invested partner. While fractional executives bring a depth of experience and specialized skills that might be unaffordable full-time, there's an inherent instability, as she described, "it's always a little scary when you know that someone is going to be working with another company as well... or could be leaving at any time." And honestly, I also was not actively searching for fractional work when we met—I was excited about the opportunity but knew her budget would exclude me.

Half the Time, Half the Value?: While the initial concern was getting "half the work" for "a full-time budget," the reality has been more nuanced. Meredith and I both agree that my experience from working across various brands has allowed me to provide killer strategic direction, navigate complexities, and act confidently in ways that a more junior hire would struggle with. Meredith expressed, "while not ideal for the founder to have fractional vs. full-time, I feel really grateful to be able to work with someone as talented as you, and your 50% is closer to most people's 100%." Thanks, Meredith 🙂.

Realities of Fractional Work: The flexibility of fractional work offers advantages for me, such as the ability to pursue learning, work with multiple companies, and work in ways not tied to traditional hours or locations, yet it also introduces constraints to both of us, related to scope and time management. Meredith pointed out the operational and psychological challenges: "I'm a little bit more wary of asking you to do different things because I know there's a limited number of hours for you." For me, the challenge is to always consider my time in the context of the value I bring and what I’ve been hired to accomplish.

The Power of Commitment: Success hinges on a key factor—commitment. While my hours are limited, my commitment to Elemind's growth is not. This commitment extends beyond the contracted hours, mirroring the dedication of a full-time employee. I have successfully embedded myself within the organization and want to be perceived as a full-time leader in the way people seek my expertise and include me in decisions. This blurs the lines for team members who might not always remember that I’m working part-time. Meredith says, "It occurred to me that the rest of the team might not actually even realize that you’re fractional."

To Meredith’s credit, she created an environment of commitment for me as well. As Meredith shared, "what matters more is how invested the person is in getting the job done well vs. how much time they actually spend. If you can incentivize your fractional CMO with equity to be with you for the long haul or achieve certain milestones, then incentives are aligned, and they can feel ownership as if they were a full-time employee—because they actually are an owner."

Benefits Beyond Expertise: The value goes beyond expertise. Meredith highlighted my ability to "manage and lead the entire process," freeing her to focus on other areas. I’ve been able to identify partners from my vast network and manage them successfully for the company. And perhaps most importantly to me, I feel like I'm working for someone where I can bring all parts of my experience, and they’ll be valued and appreciated. While the bulk of my time is on marketing-specific work streams, Meredith has repeatedly acknowledged my communication skills and leadership skills, and engaged me in broader conversations about the business where she feels I bring value. She said, "you've helped reframe a lot of things that I viewed as negative into positives, and that's been incredibly appreciated... you approach pivots and punches energetically."

Recommendations for Other CEOs: Toward the end of the conversation, we discussed our shared advice for others considering fractional. Here’s our shortlist:

Open Communication: Clearly define expectations, scope of work, ways of working, and communication styles upfront. For the CEO, be clear on how you will measure success in this engagement. Setting clear expectations about what the fractional % translates to in deliverables is crucial. It's a delicate tango—defining boundaries while fostering trust. For the fractional CMO, transparency is paramount. As Meredith says, "an open line of communication" about my future plans is essential for her peace of mind.

Focus beyond time: For the fractional leader, focus on impact versus micromanaging your hours. For the CEO, don’t hesitate to engage your fractional partner where you think there could be an impact—together you can decide how to incorporate a new work stream into the role if needed. As I said to Meredith, "I am hell-bent on helping you achieve everything you hope for—as a leader, for the brand, for the business. F*ck fractional—you know where my heart is."

Ownership: Explore equity or milestone-based incentives to create an environment for commitment and behaviors that drive ownership.

Fractional Leadership Isn't a Compromise, It's a Strategic Investment. For startups like Elemind, with a clear vision and a hunger for expertise, a fractional leader can be the missing puzzle piece. But for others, the right answer might be a full-time hire. All hiring is a calculated risk—investing in the right kind of leadership, fractional or otherwise, to propel your growth is a process filled with pitfalls and possibilities.

#communityovercompetition #futureofwork #futureofbusiness #strategicinvestment #wearetheboard