Is Northern Ireland Catching On?
Fractional CFO. Fractional CPO. Fractional COO.
For many business leaders in Northern Ireland, these are still relatively unfamiliar job titles. I suspect that won’t be the case for much longer.
Over the past year, I’ve found myself having more conversations about fractional appointments than ever before. More notably, our Executive Search team at Artemis Human Capital has worked on more of these assignments than at any point previously, and they haven’t been confined to one function.
We’ve seen businesses engage fractional Chief Financial Officers, Chief People Officers and operational leaders, sometimes for a couple of days a week and sometimes to lead a specific project or period of change. In many cases, it’s simply a business recognising that it needs senior expertise, but not necessarily on a full-time basis.
It raises an interesting question. Is Northern Ireland beginning to embrace a model that has already become much more established across the UK and Ireland?
A Different Way of Accessing Leadership Talent
At its simplest, fractional leadership allows organisations to access senior executive expertise without making a full-time appointment.
One of the misconceptions, however, is that fractional means consultant. In my experience, that’s not usually the case.
A consultant will often provide advice and recommendations before stepping away, whereas a fractional executive tends to become part of the business itself. They’re involved in discussions, contribute to decision-making and have responsibility for outcomes in much the same way as any other member of the leadership team.
That’s an important distinction, and it’s one that’s increasingly recognised across the wider market.
The Institute of Directors has written about the growth of fractional leadership in the UK and makes a clear distinction between fractional executives and non-executive directors. While NEDs provide oversight, challenge and governance, fractional executives are typically much closer to the day-to-day delivery of business objectives.
The trend is becoming increasingly visible across Ireland too. ACCA recently profiled its Ireland Chair, Joe O’Regan FCCA, in his role as a fractional CFO, while organisations such as Agile Executives have built networks of senior leaders spanning finance, operations, HR, technology and commercial functions.
It’s also no longer something associated solely with finance. Earlier this year, Galway-based Platform94 appointed former Netflix VP of HR Sue Gannon as Fractional Chief People Officer, reflecting a broader shift in how organisations are choosing to access senior leadership capability.
Taken together, these developments suggest this is becoming less about a new title and more about a different approach to hiring expertise.
Why Now?
Part of the answer, I suspect, lies in the pace at which businesses are changing.
Organisations are being asked to navigate growth, transformation, investment activity and increasing operational complexity, often all at the same time. The expertise required to deal with those challenges can be highly specialised, but that doesn’t automatically mean a permanent appointment is the right answer.
A business preparing for investment may benefit from an experienced CFO for a particular period. Another might need senior HR leadership while building out its people strategy, while a third could require operational expertise to deliver a significant transformation programme.
Historically, the choice was often a straightforward one: hire permanently or bring in external advisers. Fractional leadership sits somewhere between the two, giving businesses access to experienced operators who can make a practical contribution without the long-term commitment of a full-time hire.
That doesn’t mean it’s right for every organisation. Some businesses need a dedicated executive sitting in the role every day, and some challenges are better addressed through consultancy support. As with most things, it’s horses for courses.
Is Northern Ireland Catching On?
I believe it is.
We’re certainly seeing more interest than we were a few years ago, and more businesses appear willing to explore alternatives to the traditional executive hiring model. That’s not to say fractional leadership will replace permanent appointments. I don’t believe it will, nor should it.
What it does offer is another option for organisations that need experience, capability and leadership, but perhaps not on a full-time basis.
The reality is that most businesses don’t need every piece of leadership capability all of the time. They need the right expertise at the right moment.
For some organisations, that will continue to mean a permanent executive hire. For others, a fractional appointment may prove to be a more effective solution.
If you’re exploring your options, or would simply like to discuss the role fractional leadership could play within your business, contact a member of the Artemis Executive Search team via the details below.
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