The "real" meaning of fraction(al)

Let's start with the most obvious first.

In basic math, a fraction represents a part of a whole or a ratio between two numbers. It is expressed as a/b, where a is the numerator, indicating how many parts are being considered and b is the denominator, indicating the total number of equal parts into which the whole is divided.

For example, in the fraction 1/4; this means 25% of a unit of measure. As an example let's look at a unit of time. This could be a 25% of a day, a week, a month or a year.

Now let's think about the term fractional management. What does it mean?

Fractional management is a business practice where companies hire experienced consultants on a part-time, as needed, or temporary basis, rather than on a full-time basis.

This seems to make sense as a definition.

But does it make sense in practice? Let's explore this some more.

A fractional approach is often used to bring in experienced leadership or specialized expertise without the commitment and cost of a full-time hire.

Fractional consultants provide their services for a fraction of their time. This can include roles such as fractional Chief Financial Officers, Chief Marketing Officers, Chief Technology Officers, Chief Commercial Officers and other executive positions. This can also be beneficial for other types of roles and for leading mission critical projects that an organization feels they need to look outside in order to complete.

Let's now look at some of the benefits of a fractional approach.

• Cost Efficiency: access to expertise without the financial burden of a full-time headcount.
• Flexibility: easy to scale the involvement of the fractional manager based on needs.
• Expertise: Small and mid-sized companies can benefit from the skills and experience of experienced executives that they might not otherwise be able to afford.
• Quick Implementation: fractional consultants can often start contributing immediately, providing a fast solution for companies needing immediate solutions.

There are likely more but these are the ones that are top of mind.

Now what are some of the drawbacks of a fractional approach.

• Limited Availability: Fractional managers may split their time among different clients, which may limit their availability and responsiveness compared to a full-time headcount. If you work with the right fractional consultant this should not be an issue.
• Lack of Deep Integration: they may be unable to develop as deep an understanding of the company culture, internal processes, and team dynamics.
• Potential Conflicts of Interest: Managing multiple clients can lead to conflicts of interest, especially if the clients operate in similar industries or compete with each other. If you work with the right fractional consultant this should never be a problem.

There may be more, and will vary based on the business situation.

Ultimately, I do not believe that there are right or wrong answers on whether one chooses the path of fractional support. It is truly based on whether you feel fractional support is the appropriate path to take. This will vary on the industry, company, business needs and timing of need.

When you read through the pros and cons I leave you with one additional perspective. It has been my experience that the most important factors when working with someone on a fractional or full-time basis are as follows:

1. How their skills match up to the problem that you are trying to solve; and
2. the fit with you and the team they will be working with.

Make sure that when hiring fractional support that you check off these last 2 boxes and also make sure that the person who is selling the fractional support is the one who will be doing the work.

I am proud to say that as a boutique consultancy, when you decide to work with STRAT2TACT Consulting you will not have to worry about the person selling the services not doing the work.

If you have any needs STRAT2TACT Consulting (www.strat2tact.com) is a healthcare commercialization partner for biopharma, biotech, medical device and medical technology and comes with 25+ years’ experience in the U.S., Canada and Europe.

STRAT2TACT Consulting provides fractional support for:

• Commercialization;
• start-up operations; and
• working with Venture Capital / Private Equity firms to ensure they make the best possible decisions.

Give me a call at +1-514-909-6807 or email me at [email protected] for more information.

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