Fractional Leadership: A Smarter Approach to Executive Talent

These are the draft responses for the radio interview on CNA938 | Mind Your Money, aired on March 14, 2025. The podcast is available here.
Q1: What is Fractional Leadership? How is it different from traditional full-time roles?
Fractional leadership is a flexible model in which senior executive are engaged on a part-time, interim, or project basis to fulfill leadership roles or drive key initiatives.
Many companies require experienced leadership but may not need—or be able to access and commit to—a full-time executive. Fractional leadership provides access to high-level expertise without the long-term costs and obligations of a permanent hire. Unlike traditional full-time executives, who oversee ongoing operations, fractional leaders focus on specific objectives, offering strategic guidance and hands-on execution within a defined scope and timeframe.
Q2: What pushed companies to start adopting such a model?
Fractional leadership has gained significant traction in Western markets like the EU and the US, while adoption in the East remains slower. I’ll share my perspective on this gap in a moment.
To your question—many companies today require experienced leadership but may not need, or be able to access and commit to, a full-time executive.
Consider this scenario: As a business leader, you’ve planned a critical growth or transformation project for the year, but your organization lacks the right internal resource to lead it. The project will take six to nine months. What are your options? Hire a full-time executive, knowing the need will disappear in less than a year? Even if you try, will you be able to attract the right talent without offering a clear long-term career path? In most cases, the answer is no.
That’s the demand side. On the supply side, fractional leadership is becoming more viable because an increasing number of seasoned executives are choosing this path. I’m one of them, and I can offer firsthand insight into why many executives—still in their prime—are drawn to it: freedom. The freedom to apply a lifetime of expertise in contexts we enjoy and for causes we care about. At a certain stage, many leaders seek to invest their time, effort, and energy into meaningful projects rather than being tied to a single corporate role. This makes fractional leadership a more compelling career choice than full-time employment.
In summary, both demand and supply are growing—and the match is happening.
The final point to address is why this trend has accelerated in the West but not as quickly in the East. In my view, and this is just my perspective, it comes down to how trust is built. In Asia, trust is often established through long-term consistency, making businesses more hesitant to grant access and authority to individuals they don’t have a history with. While trust based on references and contracts works well in the West, in this region, even highly credentialed candidates may face greater skepticism before being placed in leadership roles.
Q3: Are there any examples of how such fractional roles have helped a company with their pain points?
I can share a few real-life examples from my own network.
One case involves a finance executive with an MNC background who transitioned into a fractional CFO role for small and medium enterprises. She worked with a company whose owner and managing director needed to restructure debt and secure financing. While SMEs typically have the resources to manage routine financial operations, complex, high-stakes financial projects require specialized expertise and industry connections. In this case, bringing in a fractional CFO allowed the company to access the right skills without the long-term commitment of a full-time hire.
Another example is a senior sales executive who spent years developing an extensive network across Southeast Asia while working for large local corporations. Now operating in a fractional capacity, he has helped SMEs expand into new markets by leveraging his industry relationships and deep regional knowledge. For many smaller companies, breaking into new territories is challenging—not just because of operational barriers, but because they lack the high-level connections and strategic know-how to navigate market entry. A fractional sales leader provides an immediate bridge to these opportunities.
These cases highlight how fractional leadership can address specific pain points, whether financial, operational, or strategic, by injecting the right expertise at the right time—without the burden of a full-time hire.
Q4: Is the Fractional Leadership Model more effective for smaller companies list Startups and SMEs? Are there industries where this works best?
While the fractional leadership model can be applied to companies of any size, it is more commonly found in startups and SMEs. If we go back to the core idea—companies needing experienced leadership but not requiring or being able to access or commit to a full-time executive—this scenario is far more typical in smaller organizations. Startups and SMEs tend to have lean internal teams and limited budgets, making it challenging to justify the cost of full-time senior hires, even when the expertise is needed.
For them, fractional leadership provides a way to access top-level experience in areas like finance, sales, marketing, operations, and technology without the long-term overhead. A startup looking to scale quickly, for example, may need a seasoned CFO to structure fundraising efforts or manage cash flow but wouldn’t need—or be able to access and afford—that expertise on a permanent basis. Similarly, an SME expanding into new markets may benefit from a fractional sales leader with deep regional knowledge, without the need to build a full-time, permanent team upfront.
Q5: Would there be complications if the leader they’d like to speak to is not around full time?
That depends on both the leadership style of the fractional executive and the maturity of the organization.
That said, let’s recognize a key shift in contemporary leadership culture. Today, leadership is less about giving instructions and more about setting direction, providing coaching, and offering support when needed. Employees value independence—they don’t want a boss constantly looking over their shoulder. The rise of flexible work culture has reinforced this mindset. We now expect to work based on priorities rather than rigid hours, with autonomy to operate on- or off-site as needed.
In this context, the idea that a leader must be physically present full-time is already becoming outdated. Many companies are functioning effectively without daily, in-person interactions with their managers. If anything, fractional leadership aligns well with this evolution—leaders focus on strategy, guidance, and decision-making, while teams execute with greater ownership.
However, if an organization operates in a way where managers closely monitor tasks and schedules, then a fractional leadership model may not be the right fit. In environments that rely on continuous oversight, flexible leadership approaches will naturally face resistance.
Q6: If the C-suite leadership is not employed on a full-time basis, that may mean finding work in other companies. Will employees feel like they’re far away from their leaders, or unable to connect with them?
It’s important to distinguish between professional fractional executives and executives who are simply in-between jobs. Professional fractional leaders are not looking for their next full-time role; they are looking for their next contract.
When promoting my fractional leadership services, I sometimes sense concerns from companies that I—or any fractional executive—might be using the role as a stepping stone to a permanent position or even as a way to replace an existing executive. That is not the case. Fractional executives operate with a different mindset: they are there to provide expertise for a defined period and specific objectives, not to build a long-term corporate career within the company.
For companies seeking fractional leadership, my advice is to engage executives who have deliberately chosen flexible leadership as a career path. These professionals bring experience, focus, and a results-driven approach without expectations of a permanent role.
As for whether employees will feel connected to a fractional leader, that depends on both the executive and the organization. A capable fractional leader will integrate effectively, providing strategic direction while fostering strong working relationships. However, the company’s culture also plays a role—organizations with a mature, open environment are more likely to embrace and benefit from flexible leadership models.
Q7: How does this possible leadership model impact career paths for senior executives?
For senior executives looking to transition into a more entrepreneurial career, fractional leadership provides a viable path. It allows them to apply their expertise across multiple companies, work on projects that align with their interests, and maintain greater flexibility in how they engage with businesses.
On the other hand, if a senior executive finds themselves in a full-time role that could realistically be done on a part-time basis, that’s a warning sign. It suggests their role may not be adding enough strategic value to justify a full-time commitment. In such cases, the executive should proactively reassess their position, either by expanding their responsibilities or considering alternative career moves—before the company makes that decision for them.
Q8: Would this create less loyalty in the company, if their employees feel like they aren’t able to be promoted to such positions that are filled with people hired in fractional positions?
I don’t believe flexible leadership arrangements significantly impact employee loyalty. The reality is that certain executive roles no longer require—and will require even less in the future—a full-time presence. Companies need to structure leadership around business needs, not traditional employment models.
For junior employees aspiring to executive roles that no longer justify a full-time position, this is a career risk. The business world is evolving, and professionals need to adapt. If your goal is a full-time executive role in an area where companies are increasingly opting for fractional leadership, you may eventually find yourself in a vulnerable position.
Q9: How should companies identify which leadership roles can be transitioned into fractional positions?
The key is to go back to basics. Identify roles that require senior-level expertise but do not demand a full-time presence. These are the positions that can be transitioned into fractional roles.