We are using a fractional CFO and a fractional CMO on our leadership team to save cash before we exit. How do we display these fractional roles on our Accountability Chart without confusing potential buyers or our internal staff?

Question

Tyler Smith · Accepted Answer

Fractional executives belong on your Accountability Chart in the exact same way full-time employees do. The chart defines the seats and roles the business needs to succeed, regardless of how many hours a week the person in that seat works.

You should place the fractional leader's name in their respective seat, such as Finance Director or Marketing Director. Do not label the seat as fractional on the chart itself. The roles and responsibilities must be just as clear and rigorous as they would be for a full-time executive.

The only difference is capacity. When you run a fractional leader through the GWC™ filter, you must ensure they have the capacity to deliver on their roles within their contracted hours. Their scorecard metrics must reflect what is achievable under their agreement.

For buyers, seeing fractional leaders on your chart is not a red flag as long as the seats are structured correctly and the processes are documented. In fact, it shows that you have professionalized your leadership team without bloating your overhead.

As you get closer to an exit, your Succession Accountability Chart should show a clear plan for when these fractional seats will need to transition to full-time roles, and how a buyer can execute that transition smoothly.