When careers don’t have to end at retirement
For years, senior leaders have mostly lived with a binary choice: sprint at 120% until a fixed date, then stop. That model still exists, but it is no longer the only path. But here’s the thing: it’s not easy for someone who’s led teams for decades to suddenly stop, right? A growing number of executives are downshifting without disappearing, taking on fractional mandates that keep them close to the action, accountable for outcomes, and free to design a balanced life. For companies, fractional roles bring expertise and speed without adding another full-time seat to fixed costs.
What fractional really means
A fractional executive is a senior leader engaged on a part-time basis but still owns outcomes, typically one to three days a week (about 15–25 hours). Unlike pure advisers or project contractors, fractional leaders step into the business, make decisions, lead a function (Finance, Marketing, People, Technology, or Product/Data), and are measured by the same KPIs as full-time executives. They also differ from interim executives, who are usually full-time for short, transitional periods or crises. Fractional seats sit between those models: hands-on and accountable, yet not full-time.
A similar, though not identical, model is used by investment firms: they often employ an Entrepreneur in Residence or Executive in Residence (EIR) to protect their investments or to support companies during periods of growth.
Why it’s rising now
Three forces are pushing fractional leadership into the mainstream.
First, companies need more flexibility. Boards want options that scale without the disruption of layoffs.
Second, the pace of technology change, from modern data platforms to AI, is moving faster than hiring cycles. Companies need experienced leaders for the next 6–12 months, not a blank-sheet org chart for the next five years.
Third, executive careers are lengthening and diversifying. Many leaders want to keep moving while protecting personal energy and time for board work, investing, or life outside work.
What companies gain
Right talent, right-sized cost. Access top-tier executive experience without taking on the full compensation package: salary, bonus, equity, and benefits. For startups and scale-ups, that can be the difference between moving and stalling. For larger enterprises, it enables a new line of business or a modernization push without inflating the cost base.
Speed at pivotal moments. M&A integration, new market entry, IPO readiness, tightening financial controls, setting up revenue operations, or navigating a turnaround are classic situations where a fractional CFO, CMO, CHRO, or CTO can compress a 12-month journey into a focused 90- to 180-day program.
Technology inflection points. Data and automation rarely wait for a perfect org chart. A fractional CTO/CPO/CDO can set architecture, select tools, sequence change, and de-risk implementation, then help recruit and onboard the permanent leader.
A bridge to full-time. Not every company is ready for a full-time hire on day one. A strong fractional leader designs the function, delivers early wins, and helps hire a successor when the time is right.
Why executives choose it
Stay in the game, on your terms. Many senior professionals prefer a portfolio of two or three high-impact mandates to one all-consuming role. They keep shaping strategy and transformations while maintaining control of their calendar.
Align compensation with scope. When one organization’s budget cannot cover a 25-year track record, a fractional portfolio of mandates aligns compensation with outcomes across several engagements, avoiding the politics of a single org chart.
A simple hiring playbook for founders and CEOs
Define the mandate precisely. Write a one-page brief that outlines the scope, deliverables, KPIs, decision rights, dependencies, and what success looks like at 30, 60, and 90 days.
Prioritize access over hours. You’re buying judgment and velocity. Limit weekly hours, but guarantee access for pivotal decisions and removing blockers, plus timely access to data, tools, and sponsor time.
Set governance. Name the executive sponsor (CEO or founder). Establish a weekly operating review and a monthly KPI deep dive. Make sure the work connects smoothly across teams.
Protect the team. Give the fractional leader clear authority over a defined slice of the org. Nothing stops progress faster than shadow ownership.
Build succession from day one. Document systems, dashboards, and rituals as you go. If a full-time hire is planned, the fractional executive should help define, interview, and onboard the successor.
Pay for outcomes. Keep the model simple: a base retainer plus milestone payments tied to the mandate. If equity is on the table, link it to value creation and distribution that match the timeframe.
Pitfalls to avoid
Treating the role as advice-only. Without access to data, budget, and decision-making authority, results won’t happen. Align on these upfront.
Hiring the wrong profile. A brilliant strategist who cannot run operational rhythm meetings or build dashboards will struggle in a fractional seat. Choose leaders who can execute a proven plan and lead change across the team.
Scope discipline. The best portfolio leaders set clear boundaries and stick to them. Keep requests in a backlog and run changes through a simple approval step to protect the mandate and keep execution moving.
Pricing and contracting tips
Start with a three- to six-month engagement, reviewed monthly based on agreed KPIs. Pick a clear model: one day a week, two days a week, or a fixed number of hours per week, with guaranteed access for critical decisions. Blend a retainer with outcome-based milestones. Agree upfront on tools, data access, and communication frequency so the leader can operate, not fight for access.
A quick checklist before starting
• Do we have a clearly defined problem that a senior leader could solve in 90–180 days, or over a longer period?
• Which levers must they own (people, budget, process) to deliver results?
• Who is the executive sponsor, and what is the review frequency?
• What are the non-negotiable decision rights?
• What will we keep, stop, or hand over at the end of the mandate?
• If we succeed, what does our org chart look like?
Regional perspective: Armenia & Georgia
Fractional is still new here. The issue is not a shortage of senior CFO, CMO, CHRO, or CTO talent; it is that the model itself is not yet common. Many firms run fractional-like setups (part-time advisers or project leads), but these are not shaped as true roles with clear ownership, decision rights, and targets.
Given our region is an emerging market, well-structured fractional leadership can noticeably speed up company growth by adding senior judgment, installing simple operating rhythms, and de-risking change without expanding fixed headcount.
Boyden’s Armenia and Georgia offices are ready to help design and run proper fractional engagements: define the mandate, source the right leader, set the review frequency, keep contracts clean and practical, and plan the handover to a permanent hire when needed.
The author, Sevada Baghdyan is a Partner at Boyden, leading operations in Armenia and Georgia. He advises founders, boards, and CEOs on executive hiring, succession, and leadership effectiveness.
