27 Apr What are fractional services
Fractional services is a fancy way of saying part-time expert resourcing when and how you need it. Such a resource helps fill the talent and skill gaps in your business for a ‘fraction’ of the cost for a full-time employee.
The concept of fractional services has been around for decades. Lawyers on retainer are one example of a fractional services arrangement; they are paid to be available “as needed” to offer expert advice and support. Another example are executive resources like CFOs and COOs for start-ups. Start-ups have long tapped into the executive pool on a fractional or part-time basis to fill strategic operational gaps so staff can focus on product development and sales.
This part-time approach is becoming more popular across all professional services. Bringing in an experienced resource like a project manager or digital media coordinator on a fractional basis can be an efficient way for a business to access the expertise and talent needed without over committing on budget.
How do fractional services work
A fractional services arrangement is fairly simple.
The resource becomes part of your business for a certain number of hours or days per week. This arrangement is normally for a long-term commitment (say 9- 12 months). They execute the agreed upon responsibilities while playing an important role in the evolution of the business.
For example –
- a fractional PMO director is available for the same six hours per week to complete project governance and reporting tasks.
- a fractional marketing manager works two days a week on a flex schedule to cover social media and strategy.
- a part-time senior business analyst works four hours every Tuesday and Thursday morning to cover project assignments.
Traditional Consulting vs Fractional Services
Traditional consulting provides full-time individuals or teams for a set project over a scheduled timeline. The scope of work is well-defined and it is completed separate from ‘business as usual’ activities.
Fractional services transforms the project resource approach into a capability resource approach. An individual or pooled team is engaged to provide an ongoing service to address a capability need with dedicated time within a flexible arrangement. Work is normally completed as part of ‘business as usual’ operations.
Pros of Fractional Services
Reduce Overhead
Hiring is expensive. There’s not just the salary, benefits, and other perks to consider. Costs associated with recruiting, hiring, onboarding, and training also need to be factored in.
Optimize Existing Resources
Stretching employees to cover demands outside their assigned roles is expensive. Increased stress, low motivation, quality issues are all potential outcomes when people are overloaded with work they have neither the time nor skill to complete. Sourcing a professional to bridge such gaps frees up your employees to direct time and energy to their ‘real’ duties.
Flexible Support
Customize support levels to meet the evolving needs of your business. Tailor the work schedule to balance demand and to provide consistent levels of access.
Scalable Responsibilites
Increase or decrease responsibilities in critical and fallow times. Add in more fractional resourcing where and when needed or scale back as your business matures.
Accessible Engagements
Affordable expertise with expert skills and a predictable budget seems too good to be true. It is possible though with the right partner and the right arrangement.
Objectivity
Sometimes you are too close to a situation to see it clearly. A fractional resource can provide an objective “truth teller” perspective grounded in years of experience.
Specializations
Focus on existing strengths instead of trying to figure everything out on your own. Do this by bringing on someone more efficient and curious in the areas needing extra attention to help you strategize and execute.
Is a Fractional Resource the right choice?
Maybe, depending on the situation. Not every business needs a full-time project manager or a full-time controller but they may need someone skilled at handling complex processes or shepherding strategic initiatives for a smaller amount of time on a continuous basis. This is when a fractional service arrangement may fit the situation.
For example, a fractional resource might be a good choice if:
- current operations have hit capacity and people are unable to be freed from day-to-day activities to address strategic projects.
- a leadership position is vacant and an interim resource is needed to cover leave or a lengthy recruiting process.
- current staff are struggling with changes and need a mentor or coach to level up.
- strategic planning is lacking and the current leadership need an experienced resource to develop this capability.
The trappings of traditional resourcing and traditional consulting are hard to shake – full-time, strict org chart location, set locale, etc. But if you have a creative mindset and a good understanding of your core business supports the value potential of a fractional arrangement could be right for you.
Tips for finding and using fractional resources
- Define your needs and come up with a clear plan for how fractional support will help you reach your goals.
- Create a list of the skills and supports you need and then prioritize them.
- Take time to find the right resource who is aligned with your business goals and values.
- Be flexible with what you need and how these needs will be met.
Fractional services are worth considering if you’re looking to scale your business or bridge operational gaps to meet strategic needs. The trappings of traditional resourcing and traditional consulting can be hard to shake – full-time, strict org chart location, set locale, etc. But if you have a creative mindset and a good understanding of your core business supports, the value potential of a fractional arrangement is there for the taking. And who doesn’t want access to top talent sooner rather than later without breaking the bank.
Certain people do certain things really well. Do you have these people now? Can you wait to grow or hire these people? Are you open to new ways of augmenting your staff?