Fractional CPO: Why You Should Hire a Fractional Chief Product Officer
We probably don’t need to tell you how quickly the tech world evolves these days. With technologies advancing at breakneck speed, businesses need more than just a capable team of developers – they need strategic guidance from highly skilled product executives. That’s where fractional product leadership comes into play.
Fractional product leaders, or Fractional Chief Product Officers (CPOs), can bring a completely new depth and breadth to the business. With their diverse industry expertise, they can quickly evaluate the company’s existing strategy, identify points for growth, and set the wheels of your organization in the right direction.
In this article, we’ll explore who Fractional CPOs are, what they are doing, and why you may need to bring one into your business. We will also answer the question of how this role differs from consultants and interim positions and guide you as to when to choose which. Ready to begin? Let’s get the ball rolling.
What Is a Fractional CPO?
Fractional chief product officers are professionals with extensive experience in product management. Typically, these are former product managers or owners who chose to do part-time work for multiple companies instead of working full-time for one organization. Having worked across various industries and with different types of products, they bring a wealth of experience to the table. They help companies build product teams, integrate the latest technology and trends into their product strategies, and navigate market dynamics.
As a rule, fractional CPOs work part-time, doing 10-30 hours a week, and can be contracted for a period from 6 months up to 2 years. They are hired as an external resource, providing a level of expertise that is both flexible and scalable. This arrangement allows companies to benefit from high-level strategic guidance without the long-term commitment and expense of a full-time executive.
Key Responsibilities of a Fractional Chief Product Officer
Fractional CPOs take on a wide range of responsibilities to help companies achieve their product goals. Some of their key tasks include:
- Strategic product vision: Defining and communicating a clear vision of what the product should be like in the future and what goals it should achieve.
- Roadmap development: Creating a product roadmap with milestones for the development and launch of new features or products.
- Market research: Keeping up with what’s new in the market to understand what customers want and what’s changing in the industry.
- Team leadership: Mentoring and guiding product teams, ensuring they work well together and keep getting better at their jobs.
- Stakeholder management: Handling communication with company leaders, customers, and business partners to keep everyone informed about product plans and get support for new developments.
- Performance tracking: Setting key performance indicators (KPIs) to measure product success and drive data-informed decisions.
- Customer feedback integration: Implementing ways to get feedback from customers and use it to improve the product.
When Engaging Fractional CPOs Is a Smart Move
There are a number of scenarios where enlisting the help of a fractional chief product officer proves useful. Let’s go over some of the most popular ones to get an idea if this is something that can benefit your business.
Startup companies
If you’re an owner of a startup that has just recently started its activities, there’s a good chance you might need strategic guidance to help you pivot your business in the right direction. Fractional CPOs can give you a helping hand with that. From building a solid team of IT specialists to implementing best industry practices and ensuring the product market fit aligns with the chosen business model, they play a crucial role in driving your business growth.
Growing companies
For companies getting ready for expansion, the experience of fractional CPOs can be invaluable. Scaling often comes with complex challenges that require a seasoned hand to navigate. A fractional CPO can help streamline product development process, ensure scalability in product design, and optimize team performance to handle rapid expansion. They also assist in refining product roadmap to align with new growth objectives.
Digital transformation
Businesses looking to embrace digital transformation can benefit from fractional leadership. Experienced product leaders have the knowledge of integrating cutting-edge technologies into the whole business and modernizing product strategies, making it easier for organizations to adopt new digital tools.
Entering new markets
Entering new markets is always an exciting and at the same time risky venture. The stakes are high, and the margin for error is slim. In working closely with fractional CPOs, most of these challenges can be successfully bypassed. Fractional leaders have hands-on experience across various geographies, which means they not only know what your potential customers want but they also have the knowledge to tailor your existing product to fit their needs.
Product turnaround
You might be doing what you always did but if you notice that your product’s performance starts to degrade, bringing a fresh perspective from the outside can make all the difference. Fractional CPOs can make an audit of your product performance to identify areas for improvement, implement new strategies to give your product a boost, and help refine existing functionality to better meet customer demands. With years of experience behind their belt, they can quickly see where the problems lie and come up with an actionable plan to address them.
Special projects
High-priority projects often require experience and specialized skills that might not be available on the team. While hiring a full-time executive could be an option, this can be time-consuming and may not even be practical, especially if it’s just a feature update you need. Alternatively, you could bring a fractional CPO who can break into the project quickly, ensuring the project stays on track and within budget.
Bridge the transition
Besides strategic guidance, engaging a fractional chief product officer can be a go-to in situations where someone is fired, quits their job temporarily due to health issues, or has to take a maternity leave for some time. Instead of having to wait for a few months before the recruitment team finds a replacement, engaging a fractional CPO allows businesses to bridge the gap and keep things running smoothly, eliminating costly delays.
These are just some of the situations in which the help of a fractional CPO can be incredibly beneficial, but the list can go on. As a matter of fact, almost any growing company working on an evolving project may need someone to step in at some point to provide strategic oversight and direction. This can be a full-time CPO, a consultant working on a part-time basis, an interim, or a fractional CPO. Let’s see how these roles differ and when it is best to use which.
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Fractional vs. Consultant vs. Interim CPO
As we explore the concept of fractional leadership, it’s worth digging deeper and see how this role differs from other product leadership roles. Understanding the unique advantages and responsibilities of each of them will help you make an informed decision when you face the dilemma of when to choose which.
Interim leaders
Interim leaders are usually hired as full-time employees to do the duties of a worker who has temporarily left the organization. This usually happens when someone goes on maternity (or paternity) leave or requires extended leave due to unexpected health issues. Another common scenario for hiring interim leaders is when the company is undergoing a certain transition and there’s a vacancy that can’t be filled with resources currently available on the team. An interim CPO can step in the project development process to keep things rolling until a permanent executive is found to fill the role.
Interim leaders aren’t much different from full-time fractional CPOs, except that when you hire one, you already know the end date of their engagement. Despite that, they’ve got the chance to fully embed into the role and make an impact on the organization.
When is best to use:
- Sudden resignation or dismissal of a key executive.
- Planned leaves of absence (e.g., maternity or paternity leave).
- Unexpected health issues requiring extended leave.
- Filling temporary gaps when internal candidates are not ready or available.
- Addressing a lack of specific expertise within the existing leadership team.
- Corporate restructuring or reorganization.
- Implementing significant operational changes or new systems.
- Overseeing large-scale product launches or market entries.
Consultants
Consultants, on the other hand, are external experts. Most often, companies engage them when they need advice in some specific area and/or require outside perspective and recommendations to drive the business forward. Unlike interim leaders, consultants aren’t involved in a company’s day-to-day operations. Instead, they work on a project-by-project basis and have a clearly defined scope of work. Plus, they can work with multiple clients at the same time.
“A consultant is usually involved when moving the project forward requires specialized advice or expertise that can’t be found within the existing team”.
Coaches, often mixed with consultants, are another role that can be engaged by organizations. Basically, they deliver consulting services like consultants but, instead of focusing on the company as a whole, they work with individuals to help them get better in their careers. Coaches usually work part-time and for a limited period of time, depending on the objectives of the company.
When is best to use:
- When a company requires expertise in certain technology or industry not available in-house (e.g. cybersecurity, regulatory compliance, advanced analytics, etc.).
- Helping with defining new business opportunities.
- Giving ideas on improving existing operations and reducing costs through process reengineering.
- Guide the team during the times of crisis or transition.
Fractional CPOs
As you’ve already guessed, the role of a fractional chief product officer is broader, combining the responsibilities of both interim and consultant experts. Just like interim, fractional leaders can step in for employees who have to temporarily leave the organization. However, instead of doing full hours, they typically allocate a set amount of time a month, offering flexibility to suit the company’s needs and budget.
They can also work as consultants, providing senior product expertise and strategic advice. However, unlike traditional advisors, whose involvement is usually project-specific and time-limited, fractional CPOs often work under a fixed retainer. This arrangement ensures consistent access to their expertise over a longer period of time, allowing them to immerse themselves more deeply in the company’s ongoing projects.
“Fractional CPOs are engaged when a company needs consistent strategic oversight and product management, but hiring a full-time CPO is beyond their budget.”
To better illustrate the differences and appropriate use cases for each role, take a look at the comparison chart below:
| Feature | Fractional CPOs | Interim | Consultants |
| Engagement type | Part-time, ongoing; fixed retainer or hourly | Full-time, temporary; fixed term | Project-based; often part-time |
| Duration | 6 months to 2 years; flexible | Defined end date; typically shorter-term | Defined project scope; varies |
| Involvement | Strategic oversight; ongoing, integrated | Full integration into daily operations | Advisory role; not involved in day-to-day operations |
| Focus | Comprehensive product strategy and execution | Filling gaps due to absence or transition | Specialized advice on specific issues or projects |
| Flexibility | High; adjusts to business needs and budget | Lower; set to the length of the interim period | High; usually defined by the project needs |
| Cost structure | Retainer or hourly; cost-effective for ongoing needs | Full-time salary for the interim period | Project-based fee; often one-time payment |
| Responsibilities | Strategic vision, roadmap, market research, team leadership | Maintain current operations and manage transitions | Provide expert advice, guidance, and recommendations |
| Examples of use | Scaling companies, digital transformation, product turnaround | Maternity leave, sudden resignation, temporary gaps | Specialized knowledge, business opportunities, process improvements |
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Benefits of Working with a Fractional CPO
Now that we’ve covered the situations in which hiring a fractional CPO is the right way to go and compared the key roles sharing similarities with this position, let’s delve into the specific benefits that fractional CPOs bring to the table.
Expertise
First and foremost, it’s the experience in product development these specialists have. In working closely with multiple clients across various domains, they accumulate a wealth of experience in industry trends and best practices, which can’t be matched by an average consultant. They bring a fresh perspective to the company’s strategy, helping them to avoid common pitfalls, and set the stage for their growth.
Cost-effectiveness
One of the most significant advantages of working with a fractional CPO is the cost-effectiveness. Instead of committing to paying $391,369 per year, which is the average CPO’s salary according to Glassdoor, companies can access high-level expertise at a fraction of the cost. The rates of fractional CPOs range from $100 up to $1,500 a day depending on the location and expertise. This makes them a particularly attractive choice for startups and smaller companies with constrained budgets.
Flexibility and scalability
Fractional CPOs can be hired for any duration of time and for any project, making them ideal for companies with evolving needs. Moreover, their range of services is very diverse. From fulfilling the role of interim to providing consulting services to heading processes, fractional engagement can help businesses scale up or down based on their current demands, without overcommitting resources.
Strategic vision and leadership
Fractional leaders not only need to have a deep understanding of the product’s strategic vision, but also support development in alignment with long-term business goals. They help with managing the product roadmap, prioritizing feature updates, and making crucial decisions that drive growth and innovation. With their extensive experience working with different industries, their ideas and approaches help companies stay at the forefront of technological advancements and maintain their competitive edge.
Team development and culture
Aside from guiding product strategy, fractional CPOs offer valuable mentorship and support to product teams. They can help build strong teams, provide training to ensure that everyone is working at their full potential, and instill a culture of continuous learning and improvement. By fostering a positive and collaborative work environment, they help enhance the team’s effectiveness and strengthen the overall company’s culture, making it more adaptable and resilient to change.
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When Fractional Leadership May Be Not the Best Choice
The benefits of bringing in a fractional CPO are numerous. You can tap into the expertise and experience of top talent without the cost of a full-time executive and benefit from their strategic guidance on an as-needed basis. However, hiring a fractional CPO is not always the right choice. Let’s take a look at situations where it may be not the best option:
- Need for full-time leadership. If your project requires daily in-person collaboration and quick decision making, a fractional CPO who works on a part-time or project basis may not suffice your needs. In cases like these, you’d be much better off with a full-time hire.
- Specific long-term projects. Long-term projects that span several years require full-time commitment and deep integration into the company’s system and processes. While fractional CPOs can be contracted for extended periods, they typically don’t provide the same level of engagement, which is why in most cases, hiring a full-time CPO might be more appropriate.
- Budget constraints. If the fractional CPO requires significant onboarding, training, or travel expenses, these additional overhead may make them less attractive compared to other options. In the same vein, if the price for hiring a fractional CPO is comparable to bringing a full-time CPO, opting for a full-time employee might offer more value.
- Highly sensitive projects. Companies working on highly confidential or sensitive projects may prefer working with an in-house CPO. Even though fractional CPOs sign up confidentiality agreements, having a permanent team member sometimes offer a greater level of control over proprietary information.
- Need for specific expertise. If you’re looking for a leader with specific expertise to perform additional executive responsibilities like, for example, marketing, sales, or overseeing processes, a full-time CPO with a broader set of skills may be more suitable.
Where to Look for a Fractional CPO
If, at this stage, you’re pretty confident that bringing in a fractional CPO is exactly what your business needs, you may be wondering where to look for such a specialist.
You’ve got a few options. One of the most obvious ones is to look at LinkedIn. If you type in fractional CPOs in the search field, you’ll find hundreds of profiles who offer fractional services. You can also join relevant LinkedIn groups and forums where seasoned professionals with extensive experience in product management share their insights with other product leaders. Some notable examples include Fractionals United and Fractional Consultants Community.
This is one option. The downside is that you can’t really know if a candidate you choose is really an industry professional or he or she has just recently joined the stream, especially as the number of profiles continues to grow. With this in mind, it’s best if you find someone in your network who can introduce you to an experienced CPO.
If you’d rather search for a specialist offline, consider visiting specialized events and conferences where top organizations discover potential candidates. These events are excellent for face-to-face networking, but they may require significant time and travel.
Another place to look for talented CPOs is websites like Upwork and Catalant. These resources offer a wide range of freelance professionals and fractional executives with expertise in product management. However, similarly to LinkedIn, thorough vetting is essential to find a perfect candidate, which may take a good deal of time.
Alternatively, you can opt for a consulting firm like QArea. Consulting firms have established networks of fractional executives and can match you with highly qualified candidates. While this option might involve additional costs, it can streamline the search process and provide you with pre-vetted professionals, saving you lots of effort and time.
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Evaluating the Effectiveness of a Fractional CPO
Another question you may ask is how to know if the CPO delivers on their promises and is actually bringing value you expect. Just like any other role, the performance of a fractional leader can be evaluated through key performance indicators (KPI). Here’s what you should do.
- Set clear expectations from the outset
One of the first things to do prior to signing an agreement is to communicate your expectations and goals to the potential candidate. These goals might include milestones in product development, specific KPIs, or any other success metrics your company keeps track of. By clearly defining what success looks like, you set a benchmark against which performance can be measured, making it easier to review the progress down the line.
- Keep track of deliverables and results
Assess the CPO’s performance by examining the results of their work. Are they meeting the agreed-upon milestones and deadlines? How does their input impact the overall development? For example, if the key goal was to refine the product roadmap, ensure that a fractional CPO addressed critical milestones and adjusted the strategy while keeping it in line with business objectives.
- Gather feedback from key stakeholders
Speak with other key stakeholders involved in the product development process to gather their feedback on the fractional CPO’s performance. It’s important to ensure that the CPO integrates well with their team, communicates their strategy and vision effectively, and drives results.
- Evaluate impact on team dynamics
Another key metric to check is how the CPO has contributed to the team’s dynamics and company culture. Strategic leadership involves more than just setting directions. It also requires fostering a productive collaboration. If you notice that the team’s performance and morale have increased, this is a good sign that the CPO is adding value.
- Review financial and operational metrics
Finally, the work of a fractional CPO should be measured against the impact they have on both financial and operational metrics. Are there improvements in efficiency, cost management, and overall return on investment? Take the time to evaluate if the engagement of a fractional leader has led to tangible results such as increased revenue, reduced costs, or improved operational processes.
Besides, you should see a positive trend in the efficiency of operations. A fractional CPO’s expertise should help streamline workflows, optimize resource allocation, and reduce speed to market for new products or features. A good sign is when the team starts delivering projects faster and with fewer resources. Another indicator of the CPO’s positive impact is a noticeable increase in positive feedback. If you notice a decrease in complaints and more customers switch to using your product offering, you can tell with confidence that the fractional CPO has been a valuable addition to your team.
Final Thoughts
To bring it to an end, the fractional CPO’s leadership and expertise can be a game-changer for many companies, especially those undergoing digital transformation, entering new markets, or experiencing the phases of growth. With years of experience in product management, fractional CPOs provide invaluable guidance that can help companies improve their performance and stay resilient in the time of change – all without the overhead and long-term commitment of hiring full-time CPOs.
The flexibility and cost-effectiveness of the fractional model makes it an ideal choice for startups, growing businesses, and large organizations with specific needs and challenges. However, before you bring on a fractional CPO, it’s essential to carefully evaluate your company’s current needs and objectives, including the level of involvement needed and the desired outcomes. It can very well be the case that instead of a fractional leader, your organization can benefit from an interim or a consultant specialist.
Hopefully, with the insights shared in this article, you should be better equipped to make an informed decision. Whether you opt for a fractional CPO or a consultant, bringing an experienced product manager from the outside can be your competitive advantage in today’s fast-evolving business landscape.
Share:
- What Is a Fractional CPO?
- Key Responsibilities of a Fractional Chief Product Officer
- When Engaging Fractional CPOs Is a Smart Move
- Fractional vs. Consultant vs. Interim CPO
- Benefits of Working with a Fractional CPO
- When Fractional Leadership May Be Not the Best Choice
- Where to Look for a Fractional CPO
- Evaluating the Effectiveness of a Fractional CPO
- Final Thoughts
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