3 Attributes of Successful Fractional C-Suite Execs

Talk to almost any CEO and they will say that having an aligned leadership team built on firm foundations of robust relationships and the right set of functional skills is critical for sustained success—both culturally and commercially. The C-suite has grown expansively over the last few decades, as evidenced by the 160% average increase in the size of senior executive teams between 1990 and 2023, and research shows that C-suite leaders with growth mindsets are more likely to get results. But many businesses don’t have the leaders they need.  

In fact, there’s something of a leadership crisis: A 2023 study by DDI, a global leadership consulting firm, found that in 2022, only 40% of leaders said their company had high-quality leadership, a 17% decline from 2020 and the largest drop in a decade. This growing global leadership shortage, combined with the need for agile talent strategies that enable organizations to pivot quickly and meet ever-changing demands, is keeping HR executives awake at night. 

Fractional CxOs as the HR Exec’s Secret Superpower

But there is a solution. HR executives can tap into a new breed of executive: the fractional C-suite professional, or “CxO.” This individual can supplement internal skill sets, fill gaps in skills, capacity, and geography, and use their experience and decades of wisdom to consult, advise, and steer their organizations to success flexibly and quickly. This person also brings outside perspectives, new thinking, and cutting-edge skills accumulated from their unique position of working across multiple businesses and industries providing a pathway to innovation. As you envision hiring a fractional leader, replace the “x” with whatever leadership role your company needs to fill. 

The even better news is that the fractional C-suite industry is booming and brings opportunities for business growth without the expense of making a full-time hire or adding permanent headcount. According to the Bureau of Labor Statistics, fractional jobs were up 18% from 2021 to 2022, and up 57% since 2020. This trend looks set to continue. 

What Is a Fractional CxO? 

Fractional leaders are top-caliber CxOs in functions including finance, marketing, technology, and people who have extensive knowledge and experience and have left the permanent corporate world to gain more flexibility, variety, and control over their lives. They have chosen to become self-employed and work with a portfolio of businesses. Their clients can be growing midsize businesses that don’t want, don’t need, or can’t afford a full-time C-suite professional but recognize they need the skill set. They can also be larger organizations seeking to support their group CxOs who just don’t have the time to do everything on their never-ending list of responsibilities. In both cases, fractional CxOs work on a flexible fractional basis, from one or two days per month to three or four days a week for intense projects. 

Psychological Ownership Unlocks Fractional CxO Value  

Of course, organizations want access to the functional skill sets of fractional CxOs, but we all know that these competencies will only get a business so far. The key thing to remember about working with fractional CxOs is to make sure you invest in the relationship. To reap the maximum value, they should become part of your organization’s culture and be fully integrated into your team. That’s where something called psychological ownership comes in, which is crucial for building open and long-lasting relationships, particularly in the absence of traditional employment. 

Psychological ownership refers to the feeling or perception that something is “mine” or “ours,” even if the individual does not legally own it. It is a cognitive and emotional state in which a person feels a sense of possession over an object, idea, role, space, or even another person. 

The Roots and Routes of Psychological Ownership 

There are three foundational building blocks, or roots, of psychological ownership: developing common goals between parties that deliver value, having shared identities, and fostering feelings of belonging.  

3 Attributes for Success 

Once those roots are in place, there are three practical attributes of fractional C-suite roles that are interrelated and lead to successful outcomes.  

These are the three routes of psychological ownership: 

1. Feelings of control between the fractional CxOs and the business 

The extent to which the employed business leaders and fractional CxOs can control and access each other impacts feelings of psychological ownership. This includes how accessible, approachable, and available they find each other. One of the most important attributes of a fractional CxO role is that those in the business who work with them feel as if theirs is the only organization the fractional CxO works with, even though they know rationally that the fractional CxO has other clients.  

Businesses need to know that they can quickly reach their fractional CxOs for urgent and important issues and that they have been heard. They likely don’t expect the work to be done immediately, but they want to know their needs are being taken seriously. Being prompt and responsive to requests, proactively anticipating needs, and being a master of communication are all attributes of successful fractional CxOs. The more they can look and feel like a full-time CxO, the better! 

2. Intimately knowing each other 

The more information and personal knowledge the employed business leaders and fractional CxOs have about each other, the deeper their relationship will be, and the stronger the feelings of psychological ownership. Intimate knowledge of each other’s professional and personal attributes enhances trust and connectivity. Business leaders must invest time and effort in getting to know their fractional team on a personal level to understand their strengths, weaknesses, and aspirations—just like they would if these individuals were a permanent part of their team.  

Unsurprisingly, fractional CxOs are no different. They want to develop emotional connections and bonds with their colleagues too. Being curious and finding time to talk outside of usual work commitments will reap rewards in bringing fractional CxOs closer to the business and the internal team, laying the foundation for deep understanding and strong relationships. This will strengthen collaboration and enable the fractional execs to do their best work, which is often over the medium to long term. 

3. Self-investment and co-creation 

Investment can take many forms—time, skills, ideas, physical presence, and intellectual energies. The greater the self-investment, the more fractional CxOs feel connected to the business, its people, and their work. A good way to achieve this is for the fractional CxO and the internal team to work closely together to co-create outputs. Inviting fractional CxOs to join strategic away days to craft plans as part of the top team is a perfect opportunity for self-investment to create psychological ownership. Another approach is to actively involve the fractional CxO in leadership team decision-making processes, which will enhance their sense of ownership and commitment to the organization’s success. 

Fostering a sense of control, intimacy, and self-investment is a key strategy for nurturing successful partnerships between fractional CxOs and the businesses they work with. Yet it shouldn’t be forgotten that fractional leadership isn’t the only context that can benefit. Psychological ownership is important for success in building any enduring relationship—employed or not! 

Sara Daw is an author, entrepreneur, and co-founder and group CEO of The CFO Centre and its parent company The Liberti Group, which is the global No. 1 provider of part-time and fractional C-suite professionals. She recently published the book Strategy and Leadership as Service (Routledge, 2024).