How can experienced leaders share their expertise more broadly? And how can businesses benefit from their experience without a full-time commitment?
Lauren Wambold Patel, founder, and CEO of Keenan Reid Strategies. shares valuable insights into the world of fractional consulting, explaining how her firm has helped over a hundred business leaders navigate ambiguities and activate solutions.
Under this model, consultants work side by side with leaders and their teams, providing deep strategic capabilities, but without the need to take someone on full time. As Lauren shares, it’s an ideal solution for a broad range of organisations.
You can watch or listen to the interview here or read the summary below.
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The Concept of Fractionalisation
Fractionalisation involves industry leaders, experts, and executives who have amassed significant experience and now work part-time across multiple clients, depending on the need. This model offers great work-life balance and flexibility for the consultants, many of whom are primary caregivers, business incubators, or even preparing for triathlons. For the clients, it provides targeted senior expertise without the full-time financial commitment.
Industry Applications and Career Implications
We explore how fractionalisation can be applied across various functions and how it is particularly beneficial for seasoned professionals in their mid to later career stages, offering opportunities to branch into new industries. Lauren points out that while some industries, such as healthcare, require specific experience, the underlying organisational problems are often similar across sectors.
Lauren further explains that this model is becoming increasingly valuable as companies downsize, often eliminating layers filled predominantly with Gen X and older millennials. The fractional movement allows these professionals to continue contributing their expertise in a more flexible manner, often with startups and mid-sized companies that are eager to tap into their skills.
Navigating the Transition to Fractional Work
For those interested in transitioning to fractional work, Lauren offers some practical advice. She suggests starting by networking with other fractional leaders and tapping into existing professional organisations. Platforms like Fractionals United’s Slack group, with its 10,000 members, can be a great resource. Additionally, she recommends using marketplaces like the Business Talent Group or Catalant to get started and gain the necessary experience.
Lauren emphasises the importance of viewing oneself as a business entity. This means considering tax implications and thinking about retirement planning differently, especially for those mid to late in their careers.
The Impact of Fractional Leadership on Organisational Culture
A vital topic we discuss is the impact of fractional leadership on organisational culture. When done well, fractional leaders consider themselves part of the team, adopting a servant leader mindset. They bring their expertise while also fostering and developing internal talent. Pairing a fractional leader with an up-and-coming employee can create a powerful symbiotic relationship, enhancing both the project outcomes and the employee's growth.
However, there are pitfalls to be aware of, particularly around expectations and transparency. It's crucial to clearly define the duration and scope of the engagement and ensure that HR systems support the fractional leader's role.
Ensuring Ethical Practices in Fractional Work
We touch on the ethical considerations of working for multiple clients, especially within the same industry. Lauren advises against working for competitors simultaneously, as it could damage client trust and hurt future business prospects. She also highlights the importance of transparency and maintaining professional integrity in all aspects of fractional work.
Conclusion
Our conversation with Lauren has been enlightening, shedding light on the potential and practicalities of fractional leadership. This innovative approach offers a refreshing way for experienced professionals to continue contributing their skills while enjoying greater flexibility.