Setting up and scaling a financial advice business is no small feat. For many firms, guidance from experienced C-suite leadership can be transformative – helping steer strategy, sharpen operations and build long-term value.
But hiring this kind of expertise full-time is a significant cost, often out of reach for smaller or growing firms. Enter fractional leadership: a flexible, “pay-as-you-go” approach to hiring senior talent part-time. Could it be the next big trend for the advice sector?
Punching above your weight
The advice profession is no stranger to flexible working. Since the pandemic, part-time staff, freelancers and consultants have become commonplace. These arrangements offer agility and cost-effectiveness, allowing firms to pay only for what they need.
However, senior roles like chief financial officer (CFO), chief operating officer (COO), or chief technology officer (CTO) are less likely to be filled this way. In smaller firms, these roles often don’t formally exist – with owners wearing multiple hats instead.
Advocates of fractional leadership say it allows smaller firms to ‘punch above their weight’
That may be changing. Advocates of fractional leadership say it allows smaller firms to ‘punch above their weight’ when it comes to growth, digitisation, or preparing for investment or acquisition.
And crucially, they argue that part-time doesn’t mean part-committed.
“Our team are highly committed – arguably more so, because they’re there by choice,” says Sara Daw, co-founder of the CFO Centre, which works with over 750 fractional CFOs globally.
The Spotify of the C-suite
Fractional leadership operates on an ‘access economy’ model. Daw likens it to streaming music: instead of owning a handful of CDs, you subscribe to Spotify and access thousands of albums.
“It’s the same with leadership,” she explains. “Growing, owner-managed businesses that don’t want, don’t need or can’t afford a full-time C-suite hire still need strategic, commercial decision-making. Fractional leadership gives them access to that expertise, in portions of time that suit their business.”
Fractional engagements tend to be longer-term. Some of our clients have worked with the same CFO for over 20 years
Daw, author of Strategy and Leadership as a Service, stresses that fractional leadership is distinct from consultancy or interim support.
“Consultants tend to work from the outside in – delivering diagnostics or one-off projects. Fractional leaders take on the role fully. If I’m a fractional CFO, I am the CFO, just not on a full-time basis.”
It’s also not the same as interim leadership. “Interims usually take on short-term, intensive projects – three, six or nine months – before moving on,” says Daw. “Fractional engagements tend to be longer-term. Some of our clients have worked with the same CFO for over 20 years, though three to five years is more typical.”
Signs you’re ready
Kate Davis, executive coach and managing director at consultancy Meraki People, believes there are clear signs a firm might benefit from fractional leadership:
- Rapid growth that still heavily relies on the founder
- Outgrowing the original business model, but unsure of the next step
- Emerging internal tensions or silos
- Preparing for investment or exit
- A need to improve culture, leadership or client experience – without needing a full-time hire
“Fractional leadership can be a real accelerant,” Davis says. “Done well, it brings board-level thinking, stronger governance and healthier teams – all of which enhance client outcomes and boost business value.”
Getting started
If the idea resonates, the first step is often as simple as a Google search. “Look for terms like ‘fractional CFO’ or ‘part-time CTO’,” says Daw. “When we launched our business, we were known as part-time financial directors – ‘fractional’ wasn’t a widely used term then.”
There are also firms and networks, including Daw’s own, that can help match advice businesses with the right fractional leaders.
Why are financial advisers launching businesses now?
But clarity is key. Joe Phelan, business loans expert at money.co.uk, says firms should define their goals first.
“Whether it’s strategic direction, compliance or scaling up, understanding your objectives will help you choose the right fractional hire,” he says.
Platforms like LinkedIn can be valuable, too. “Look for professionals showcasing relevant portfolios and case studies – it gives you insight into their experience and impact.”
Phelan recommends starting small. “A three- or six-month project is a good way to test the waters and make sure there’s a fit before committing longer-term.”
‘Hiring smart’
For Chris Weeks, a fractional CFO at the CFO Centre, the appeal of the model works both ways.
“After years in a single company, life had become a grey-suit loop of meetings and déjà vu,” he says. “Joining the CFO Centre in 2019 gave me variety, challenge – and, at least in theory, a better work-life balance.”
Businesses get top-tier talent without the full-time salary or recruitment headaches. It’s hiring smart
Weeks describes fractional leadership as “like getting a gourmet chef for the price of a takeaway”.
“Businesses get top-tier talent without the full-time salary or recruitment headaches. It’s hiring smart.”
For firms, the longer-term gains can be significant. As Phelan puts it: “Fractional leaders can help businesses operate more efficiently, set clearer strategies and make better decisions.”
In a sector where time and money are always in short supply, that’s an offer worth considering.
