February 16, 2021
As companies become more comfortable with hiring temporary workers as independent contractors to handle mission critical roles and longer-term assignments, senior management is also realizing that welcoming independent contractors into the C-suite can provide much needed expertise, new perspectives, and it can make great financial sense for the business. This trend started over ten years ago with a growing list of companies hiring professionals to serve as part-time Chief Financial Officers or as they are now commonly referred to as “Fractional CFOs.”
What is a Fractional Executive?
This is a question that many people ask as fractional executive positions begin to grow exponentially to include not only Fractional CFOs but also Fractional Chief Marketing Officers, Fractional Chief Technology Officers, Fractional Chief Human Resources Officers and Fractional General Counsels. Typically, the fractional executive has broad and in-depth expertise in his/her selected area of specialization as well as extensive, hands-on experience in such a role with one or more large corporate entities. The combination of the executive’s expertise and practical experience to smaller organizations that would benefit from the executive’s insights and assistance but do not have the need on a full-time basis.
Why Would a Company Hire a Fractional Executive?
With the ever changing business landscape and complexities of operating and growing a business, many businesses can benefit from a fractional executive’s expertise but worry that they can either not afford such talent or that they will not be able to keep the executive fully engaged. So instead, companies make do with existing internal resources, spend significant amounts on third party consultants or rely on existing team members who may not be qualified.
Engaging a fractional executive cannot only bring beneficial expertise into an organization, but it can also be cost effective, because the individual is brought on in a “consulting-type” role and is not an employee of the company. The company can decide how much time may be needed on a weekly or monthly basis and then engage the executive on that basis. As for compensation, this can be paid on an hourly, fixed fee or retainer basis. This all adds up to a great outcome for the company because they now have addressed an identified corporate need and added a valuable resource – all in a cost effective manner.
Why Would a Company Hire a Fractional General Counsel?
Every company has challenges, from time to time, with operations, suppliers, customers and even employees. Addressing those situations has not only become more challenging and complex, but often raises potential legal concerns. While contacting outside counsel is always an option, all too often managers hesitate because outside counsel can be slow to respond, has limited familiarity with the business and can run up a legal bill that becomes its own problem.
Fractional GCs can be a great resource for a business for because fractional GCs
- Develop a deeper understanding of the business and management’s priorities and risk tolerance;
- Understand the importance of getting to “Yes” and that risk needs to be managed, not eliminated;
- Know that management wants quick, concise answers instead of lengthy memorandum; and
- Recognize that legal costs are “overhead” and staying within budgets is critical.
Why Choose Stall Legal as Your Factional General Counsel?
Stall Legal is uniquely qualified to serve in the role of fractional GC. Stall Legal is composed of 4 highly skilled lawyers who combined have more than 80 years of inhouse counsel experience. All have held roles such as VP, SVP and GC. They have worked for leading companies, worked shoulder to shoulder with management teams and successfully managed budgets. Stall Legal is here to help your organization, irrespective of its size. To learn more about Stall Legal and its fractional GC service, visit www.stall-legal.com or call (513) 792-4088.