The typical industry that an executive serves is changing rapidly, along with their role. More and more, companies are recognizing the value that an interim executive or a fractional executive may serve. Not only are these roles flexible to fit the needs of an organization, but they may offer a cost-effective solution when a critical gap is recognized. Moreover, interim or fractional executive work may be the answer to an executive who is looking for change.
What is an Interim or Fractional Executive?
In a nutshell, interim and fractional executives are experienced professionals who take on temporary roles within an organization. While interim executives find themselves working on short-term projects or come onboard during times of transition, fractional executives are typically hired on for longer periods of time to provide ongoing support.
Interim Executives – take on short-term leadership roles for a set period of time, often during times of transition or crisis. For example, if a company is experiencing a leadership gap, undergoing restructuring, or leading a specific project, an interim executive may offer specific knowledge and solutions for the issue at hand. Such roles usually last for several months.
Fractional Executives – take on part-time leadership positions where an executive works for a company for a set number of hours or days per week. This type of model allows organizations to bring in top-level talent without the expense of hiring someone full-time. Such executives often manage specific areas of the business, like finance or operations, while dividing their time between multiple companies. This type of business model provides businesses with the expertise they need at a fraction of the cost.
Embracing Interim and Fractional Executives
There are many reasons why an organization may choose to hire an interim or fractional executive. Bringing in an experienced professional with vast amounts of experience that has been gained from different organizations means more knowledge and different insights, which may aid the situation at hand. Additionally, interim and fractional executives can provide an objective perspective on whatever challenges the organization may be facing. Other reasons to embrace interim and fractional executives include:
- A Cost-Effective Way to Access New Talent. Hiring full-time executives can be expensive to an organization’s bottom line. Interim and fractional roles allow companies to tap into the skills, knowledge and leadership of seasoned executives without a long-term commitment or hefty salary packages.
- Flexibility During Times of Transition. Interim executives are ideal for businesses facing transitional periods, such as leadership changes. These temporary leaders can assist a company while searching for permanent leadership or while the organization makes necessary adjustments. These professionals offer a flexible solution to meet short-term needs.
- Access to Specialized Expertise. Interim and fractional executives bring a wealth of experience and specialized knowledge to the table, enabling organizations to fill those critical skill gaps without building entire departments. This gives a company the ability to access specialized knowledge and experience that can get results.
Consider Interim and Fractional Roles
Interim and fractional roles offer a way for executives to stay professionally active and relevant in today’s changing workforce. By taking on short-term or part-time projects, executives can continue to develop their skills and build their reputations as dynamic leaders.
According to Entrepreneur Magazine, “Fractional executives’ exposure to diverse systems, companies, processes, structures and challenges from working with numerous businesses (often hundreds) gives them a significant edge over full-time executives, who typically hold only 5-6 positions in their careers.” This diversity of experience can enhance an executive’s skill set and professional network.
Lastly, with the freedom to choose projects that align with specific interests and goals, interim and fractional executives have greater control over their schedules and the projects s/he takes on. This allows an interim and fractional executive to be involved in a variety of business initiatives.
Best Practices for Interim and Fractional Roles
Interim and fractional roles offer a valuable opportunity for executives to contribute to organizations, expand their skills, and advance their careers. Some best practices for utilizing interim and fractional roles within the organization include:
- Leveraging Professional Networks – utilize professional networks, executive search firms, and industry associations to identify qualified candidates that meet the needs of the organization.
- An Understanding of the Industry –interim and fractional roles must have a strong understanding of the current industry trends and best practices, allowing him or her to become a valuable asset to an organization facing challenges or seeking specific expertise.
- Adaptability – interim and fractional executives need to quickly adapt to a company’s culture, challenges, and objectives to make an immediate impact.
Strategic Career Moves
As more organizations recognize the value that an interim and fractional role offers, the demand for these leaders will grow. Interim and fractional executive roles are strategic career moves that offer flexibility, diversity, and valuable experience. For executives, these roles provide an opportunity to lead, learn, and make a significant impact across various industries. And for organizations, they offer access to high-level expertise without the long-term commitment.
