Podcast Summary: HBR On Leadership - "How to Make Fractional Leadership Work"

Introduction

In the August 12, 2025 episode of HBR On Leadership, hosted by Harvard Business Review's Amanda Kersey and Kurt Nickish, the conversation delves into the burgeoning trend of fractional leadership. As organizations navigate growth without the resources to hire full-time executives, fractional leadership emerges as a viable alternative. The episode features insightful discussions with Tomoko Yokoi, a researcher and advisor at the Tonomous Global Center for Digital and AI Transformation at IMD Business School, and Amy Bonsal, founder of Kollective and a seasoned fractional Chief Product Officer.

Understanding Fractional Leadership

Fractional leadership refers to experienced executives who dedicate a portion of their time to multiple organizations, offering expertise without the commitment of a full-time role. Kurt Nickish introduces the concept:

“If you're not familiar with this idea, it's where leaders who might otherwise serve as full-time C-suite executives instead offer their skills to multiple organizations.” (01:02)

Tomoko Yokoi expresses enthusiasm for the flexibility fractional leadership offers:

“I just love how people are starting to actively and intentionally think about how they want to work... they actually want some flexibility in the types of work they do.” (02:48)

Amy Bonsal highlights the dual advantage of fractional roles—combining the accelerated learning of consultancy with the ownership and camaraderie of in-house positions:

“Fractional leadership offers to me is the ability to combine both of those things... belonging to a leadership team while working with multiple companies.” (03:10)

Growth and Trends in Fractional Leadership

The trend of fractional leadership has seen exponential growth, with over 110,000 individuals on LinkedIn identifying as fractional leaders in 2024, up from just 2,000 two years prior. Amy Bonsal attributes this surge to two primary factors:

1. Post-Pandemic Flexibility: The COVID-19 pandemic fundamentally changed work dynamics, normalizing remote work and emphasizing the importance of flexibility.

   “Covid made a huge difference... the pandemic really normalized the idea of working from anywhere and working remotely.” (05:59)

2. Changing Work Preferences: A growing number of professionals seek flexible work arrangements that allow them to balance multiple engagements.

Tomoko Yokoi adds that digital technologies enable fractional leaders to work remotely from anywhere, further facilitating this trend:

“With digital technologies and fractional, it would allow her to work from anywhere around the world.” (06:59)

Benefits of Fractional Leadership

Fractional leaders bring a wealth of experience and specialized skills to organizations, particularly startups and small to medium-sized businesses (SMBs). Key benefits include:

• Expertise on Demand: Access to seasoned executives without the financial burden of a full-time salary.

• Scalable Impact: Leaders can contribute to multiple organizations simultaneously, accelerating their learning and enhancing their effectiveness.

  “As a fractional leader, I am very much a part of a leadership team, but also I can be in that position for more than one company at a time.” (04:09)

• Skill Development: Fractional leaders often help build internal capabilities, empowering in-house teams to sustain growth post-engagement.

Amy shares a specific example:

“I helped an early-stage startup with their product roadmap and gave the founder the skills to continue refining the product on their own.” (10:16)

Challenges of Fractional Leadership

Despite its advantages, fractional leadership presents certain challenges:

• Trust and Commitment: Organizations may struggle with trusting leaders who are not fully dedicated.

  “Can I trust that they have my best interest at heart if they are not full-time dedicated to my company?” (14:52)

• Context Switching: Fractional leaders juggle multiple clients, which can dilute their focus and effectiveness if not managed properly.

Tomoko Yokoi shares a cautionary tale:

“A business owner felt that her fractional marketing executive was applying generic strategies without fully understanding her unique context.” (11:11)

• Communication and Accountability: Ensuring clear communication and maintaining accountability can be more complex with part-time leaders.

  “Clear communication seems to be a big criteria for how they manage their time.” (15:30)

Implementing Fractional Leadership in Organizations

For organizations considering fractional leadership, the following steps are recommended:

1. Identify Specific Needs: Shift focus from roles to the actual work that needs to be accomplished.

   “Figure out what's the work that needs to be done rather than what is the role we need to hire for.” (16:23)

2. Evaluate Fit and Expertise: Select fractional leaders with specialized experience relevant to your business challenges.

   “You want someone who's as comfortable getting in and doing tactical work as being a strategic partner.” (19:00)

3. Establish Clear Boundaries and Expectations: Define the scope of work and maintain regular check-ins to ensure alignment.

   Amy provides a practical approach:

   “Sit down and say here are the realms in which I will support... have an accountability session with the CEO once a week.” (22:09)

4. Integrate Seamlessly: Treat fractional leaders as integral parts of the leadership team, ensuring they are included in key meetings and organizational processes.

   “Include them in the key leadership touchpoints, much like you would do for a full-time hire.” (20:40)

Advice for Fractional Leaders

Transitioning to a fractional role requires both strategic planning and adaptability:

• Gradual Transition: Start with manageable commitments to build confidence and establish effective working relationships.

  “Don't try and go all in all at once... it allows you time to set up an LLC or whatever you might need.” (25:18)

• Define Your Niche: Clearly identify your strengths and how you can add the most value to organizations.

  “Find what you're really good at and what stage of an organization's growth you can best help.” (23:30)

• Leverage Community Resources: Engage with communities and educational programs to navigate the nuances of fractional work.

  “There are communities like Fractionals United and educational programs like Voyager University.” (26:34)

Future of Fractional Leadership

To make fractional leadership more mainstream, companies and leaders need to embrace several shifts:

• Increased Awareness: Organizations must recognize the value and opportunities presented by fractional leaders.

  “Simply awareness is key... seeing it as an opportunity to access leadership that otherwise you couldn't afford.” (27:20)

• Long-Term Human Resource Strategy: Adapt HR policies to accommodate flexible work arrangements, ensuring the retention of senior expertise.

  Tomoko Yokoi emphasizes:

  “Considering long-term human resource policies and retaining senior executive talent through alternative working practices.” (27:58)

• Cultural Mindset Shift: Move away from traditional full-time models to more flexible, dynamic leadership structures.

  “Adopting a very different mindset towards human resources and talent management.” (28:30)

Conclusion

The episode of HBR On Leadership provides a comprehensive exploration of fractional leadership, highlighting its potential to democratize access to senior talent and support organizational growth. While challenges such as trust and context switching exist, strategic implementation and clear communication can mitigate these issues. As the workforce continues to evolve, fractional leadership stands out as a flexible, scalable solution for modern businesses seeking expert guidance without the constraints of traditional full-time roles.

Notable Quotes with Timestamps

• Tomoko Yokoi: “I just love how people are starting to actively and intentionally think about how they want to work...” (02:48)
• Amy Bonsal: “I am very much a part of a leadership team, but also I can be in that position for more than one company at a time.” (04:09)
• Amy Bonsal: “Fractional leadership offers to me is the ability to combine both of those things...” (03:10)
• Amy Bonsal: “Can I trust that they have my best interest at heart if they are not full-time dedicated to my company?” (14:52)
• Tomoko Yokoi: “A business owner felt that her fractional marketing executive was applying generic strategies...” (11:11)
• Amy Bonsal: “Don't try and go all in all at once... it allows you time to set up an LLC...” (25:18)
• Tomoko Yokoi: “Considering long-term human resource policies and retaining senior executive talent...” (27:58)

Final Thoughts

This episode sheds light on how fractional leadership can be a strategic asset for businesses looking to scale efficiently while retaining access to top-tier executive talent. By understanding the dynamics, benefits, and challenges, organizations can make informed decisions on integrating fractional leaders into their growth strategies.