Why Senior Leaders Are Taking the Portfolio Pivot

The world of work is shifting. According to recent projections, the number of U.S. freelancers will reach approximately 90.1 million by 2028. The move from more traditional career paths to freelancing is so pronounced that estimates suggest the gig economy is growing anywhere between three to 15 times faster than the traditional job market.

What we’re also seeing is a more diverse range of jobs turning into freelance roles. While professions such as design and writing have long been populated with freelancers, today’s freelancers also include senior leaders. These experienced professionals are pivoting from their full-time C-suite posts to a portfolio career, engaging in multiple simultaneous roles or projects rather than a single traditional job.

It’s a niche that’s rapidly growing, according to HBR there were 110,000 individuals on LinkedIn this year who identify themselves as fractional leaders. It was just 2000 two years ago.

Business owners are increasingly realizing the benefits of accessing freelance C-suite talent when, where and how they need it, at the same time that leaders are finding the lure of this type of role even more attractive.

So what’s the reason behind the portfolio pivot? And what are the benefits – both for leaders, and for businesses?

Realigning priorities 

There are many different reasons why a portfolio career is attracting so much senior talent. In today’s volatile and pressurized workplace, many leaders are disillusioned with the relentless agenda of corporate life. The fractional life offers an exciting opportunity to move away from the corporate mold, realign life priorities and work on interesting and varied projects. In becoming self-employed, senior leaders are wrestling back control, getting to work with a variety of clients who need their valuable skills on an on-demand basis, and using their knowledge and expertise to bring real value to those who need it most.

The desire for a better work-life balance is often cited by senior leaders as their reason for a portfolio pivot. Whether it’s for caring responsibilities, health reasons, the desire to travel more or simply have more time for personal projects, fractional working allows this greater depth of freedom.

For those leaders who crave the buzz of working with a range of businesses, flexing different skillsets and tackling new challenges, fractional working provides all this. It can also be a great opportunity to use their extensive experience to help other business owners build their own success story.

There are often attractive financial advantages to a portfolio pivot too. With 60% of freelancers earning more than in their previous full-time role, it’s not difficult to see why the pay check is a definite lure – although it must be noted that a high day rate also needs to cover all the behind-the-scenes admin of securing contracts and relationship management.

Senior leadership on demand 

The appeal of fractional leadership from a business’ perspective is also very clear. During the last few years companies have had to deal with a perfect storm of disruption: tariff uncertainty, the lingering impact of the COVID-19 pandemic, inflationary pressures, skills shortages and unprecedented geopolitical volatility. The flexibility and agility of fractional working matches what’s needed in this ever-shifting business environment.

Fractional leaders can give SMEs access to top talent at a price point that they can afford and provide just the right amount of support at each stage of growth. Larger corporations needing specialized skills for a specific project or wanting to fill temporary gaps in leadership can access

expertise without the long-term commitment of a full-time hire. Fractional leaders can also be used as ‘twins’ to work in tandem with an existing C-suite leader, helping to widen an organization’s bandwidth or solve a specialist issue with expertise that isn’t currently in-house.

These fractional leaders have a wealth of expertise: over 72 percent have a minimum of 15 years of experience at a senior level. This means businesses can work with people who, while still technically freelance, can sit at the executive table, speak the language of investors and turn data into powerful insight that drives real growth.

It’s also reassuring for business owners and existing members of the executive team to know that fractional leaders are not looking to take over permanent roles. They’ve chosen a portfolio career and are committed to it. This non-threatening approach means existing executives can delegate confidently, knowing that it’s in the best interests of the business, and that they retain control at all times. Indeed, parameters such as length of hire can be built into the contract from the offset; this kind of flexibility is one of the multiple advantages of a fractional approach.

Practical insights on fractional leadership 

If you’re a senior leader interested in making the pivot to portfolio work, start by taking time to understand your tendencies and what you enjoy. Ask yourself questions such as: am I comfortable with continuous context switching? Can I set up and keep my own rhythms without external structure? Do I want autonomy and the responsibility that comes with it? It’s vital to know yourself before you take the leap, and it’s only right if your mindset and preferences align.

If you do want to go for it, start preparing early – before you leave your corporate role. Build a financial runway to insulate yourself and take away any money concerns, as it will probably take a year to make this career transition and learn the skills to find and secure the work you want. Remember, too, that the first year is often a phase of investment. You might not hit your ideal immediately. Decide what you are willing to invest upfront in those first few months and years, and what you want to aim for longer term.

Never stop learning. Some people who start a portfolio career believe that being great at their job and doing the work will be enough to make them successful. In reality, the most successful freelancers don’t just do the work – they’re experts at winning, growing and keeping the work. To do this, ensure you keep investing in your own personal development, so you’re always adding value and bringing fresh skills to your offering.

For organizations looking to hire a fractional senior leader, it can be a bit of mindset shift to realize you don’t actually need a full-time C-suite leader – but once you do, this type of worker can be used in so many ways to help you get the C-suite you could only dream of having full time.

Look for fractional C-suite professionals who have done what you want to do before. You want that experience, so you can go faster and with more certainty. Referrals are a good way to find a fractional C-suite professional – ask other businesses who have used them. Most boards focus on a sector match but while this is nice to have, don’t sacrifice a cultural fit for it: you need to be able to get on with your fractional leader.

Just as you would any full-time new hire, it’s crucial to treat any fractional leader as an ‘insider’ and part of your leadership team, so let them in! Build psychological ownership – decide on a communication strategy, open up and share with them to build intimacy, listen to their ideas, invest time in educating them. Share your dreams and desires with them so they know what matters to you personally and to your business.

It’s important to be clear on what will make a successful relationship. What value are you looking for, and how will you know you have got it? Build a workplan together, communicate regularly on progress and flex it as needed. Record the outcomes and value added over time, so you can see how much this type of leadership has helped the business.

Take all the advantages from this type of hire. Make the most of your fractional leader’s black books and networks – they’ll know many advisors who can help your business, and not just in their specialism. Ask them about industry trends – what are they seeing? They’ll potentially have a better overview than you, because they work across multiple businesses.

Transforming business strategy 

The growing trend for senior leaders taking the portfolio pivot has the ability to unlock so many opportunities – for both the leader looking to adopt a different way of working, and businesses looking to leverage world-class leadership talent, on their own terms, amidst ever-shifting markets.

It’s also a reflection of a broader shift in how modern businesses build leadership capacity. The stats show that this model of working is successful, and if ongoing market trends are any indication, the demand for fractional leaders is only likely to grow, particularly as macroeconomic conditions remain uncertain. The portfolio pivot a growing movement which proves that great leadership can be delivered in a bold new way. The benefits of this approach, for organizations and leaders alike, are potentially transformative.

Written by Sara Daw. Have you read?
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