Over the last few months, there has been more discourse about the concept of fractional leadership. What is it, where did the term come from and do we already have something like this at the moment?
For small to medium-sized enterprises (including social and community interest groups, charities, and commercial organisations) that cannot afford full-time senior-level advisors or leadership, fractional leadership is positioned as a viable solution. The concept gained popularity in the 2010s as the gig economy and more portfolio working models became more common.
What is fractional leadership?
John Arms defines fractional leadership is someone who occupies a leadership role, is a permanent team member and fills their role in a fraction of the time. Fractional leaders often work for multiple organisations at the same time, so they share knowledge and process information across these organisations. The fractional leaders tend to be either on a monthly retainer or on a day rate. Fractional leaders often occupy C-Suite roles such as Chief Financial Officers, Chief Marketing Officers, Chief People Officers and Chief Operating Officers.
According to an article by Nina Johnson (2025), a fractional leader, in comparison to a consultant, can act as an advisor and often balances projects across different organisations. Also, consultants tend to advise from an external standpoint, whereas fractional leaders are more embedded, take more ownership and are held accountable for outcomes. They don’t usually have line management responsibilities either.
In comparison, an interim is usually employed on a fixed-term contract to fill a gap before a permanent solution is found. An interim will be salaried, whereas a fractional leader will have a day rate or a fixed amount.
One disadvantage of fractional leaders is that they are harder to find than traditional roles, such as interims or consultants. Additionally, if the purpose of the fractional leader isn’t established in-house, when they are onboarded, their role may be unclear to them and the organisation.
To counterbalance some of these potential issues, ensuring a strong job description that outlines the fractional leader’s responsibilities and key performance indicators will help clarify the role. Additionally, communicating this to the rest of the organisation is important too so they can be aware of the leaders role and purpose. Once in their role, there needs to regular communications and check-ins to update and evaluate progress.
However, the benefits of fractional leadership, especially for SMEs and other organisations are many. Fractional leaders are often more cost-effective than hiring full-time top-level talent. For these organisations, they get the quality of experienced senior leaders but at a lower cost. Additionally, fractional leaders are more likely to take a more hands-on approach and are likely to embed themselves more deeply into the organisational ecosystem.
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Dr Grace Mansah-Owusu
Grace is a chartered psychologist, diversity and inclusion expert, trainer, career coach and psychotherapist. She has over twelve years of experience working in people and organisational development, research and facilitation roles in the for purpose sector, academia, transport and logistics and various consultancies. Building on her academic and theoretical knowledge, Grace provides opportunities for people to grow, develop and flourish in the workplace. She is passionate about research, career development and all in all curious about people. Grace has three times been recognised on HR Magazine’s HR Most Influential list for thinkers and practitioners whilst also campaigning for diversity and inclusion within psychology disciplines for over five years. She has also presented at conferences and events for CIPD, HR Magazine, Richmond Events and the British Psychological Society.
