Insights

As small and medium-sized enterprises (SMEs) strive to scale and innovate, access to top-tier technical expertise is crucial. However, full-time hires may not always be feasible. Enter fractional technical directors—professionals who deliver their expertise on a part-time, flexible basis. This approach is rapidly gaining traction, offering SMEs a powerful business growth strategy that balances cost and capability.

What is a Fractional Technical Director?

A fractional technical director is an executive who provides his or her technical expertise on a contract basis to several organisations in a short-term or project-based role. Unlike full-time directors, they usually provide highly flexible, demand-led support, on a part-time basis, to the management of an SME for a short period only. The fractional director model can provide a high-level technologist to a company on a project basis, which reduces the cost and inconvenience of recruiting a full-time executive. 

The Role of a Fractional Technical Director

Fractional technical directors can offer a unique blend of experience and perspectives, adding value, focus and insights to a team, often in ways that no one else can. Generally, they help to execute a business expansion strategy and operationalise it by using sound technical processes. This may include introducing new technologies, optimising efficiencies and sometimes, trouble-shoot and making improvements in the following five ways:

1. Strategic Planning

Fractional technical directors support leadership teams in crafting and implementing business cultivation strategies, unearthing opportunities for innovation, assessing technological requirements, and guiding tech objectives within the larger context of the business.

2. Project Management

These project managers have years of experience dealing with all kinds of projects. They provide oversight into the planning of the projects, such as keeping a firm deadline and creating a realistic budget. Their experience can mitigate common pitfalls in high-profile projects and ensure that a project comes to fruition.

3. Technology Integration 

In a digital world, it is important to incorporate new technologies into the growth process. A fractional technical director will assess the installation, determine what upgrades and updates need to be performed and help shepherd this process so that the installation is impacted as little as possible while performance is increased to the best possible level.

4. Talent Development

They engage and grow in-house technical teams, designing a culture of constant learning and improvement. This builds staff skillsets and also acts as an attractive recruitment tool.

5. Talent Development

They provide coaching and leadership to in-house technical teams, cultivating a spirit of learning and incremental improvement through their interactions with staff. This raises the level of technical capability of existing staff and can attract top external talent to join the organisation.

A primary reason that fractional technical directors have emerged as an important part of business strategy for SME business growth is cost. For many SMEs, the cost of hiring a full-time technical director may not be justified. Many SMEs’ cash flow might not allow paying someone a full-time salary, which is eye-watering to most ($252,152 average based on data from Glassdoor). Fractional directors allow access to technical expertise at a fraction of the cost of a traditional full-time technical director, which in turn allows SMEs to allocate resources where they benefit the most and invest in other ways that facilitate SMEs’ growth.

Their flexibility allows SMEs to scale operations while drawing on technical expertise where it’s most useful, whether it be a one-off project or ongoing support. As SMEs confront growth challenges, whether it be a sudden influx of new clients or an impending expansion into a new market, this scalability is essential.

A fractional technical director can dramatically change the trajectory of an SME. Someone with more varied experience from other industries can bring more cutting-edge ideas that directly contribute to the growth of the business.

An SME founder/CEO has a limited time span, and delegating the technical responsibilities to a fractional MD enables the founder to concentrate on his or her core competencies while promoting greater efficiency in the business. Indeed, a company that breaks down the various tasks it needs to conduct its operations into separate silos will allow each part to perform its roles formally, thus increasing the likelihood of achieving its growth objective.

How to Choose the Right Fractional Technical Director

Selecting the right fractional technical director is crucial for the success of your business growth strategy. Here are some tips to help you make the right choice:

1. Experience and Expertise

Search for candidates who have achieved success in your field and can leverage their experience to benefit your business needs and development goals.

2. Cultural Fit

Make sure that his or her work attitude and personality blend with the spirit of the company. Finding a good cultural fit is critical in helping the candidate fit into the organisation.

3. References and Case Studies

Request references and case studies to evaluate if the candidate has done a good job in previous roles and is likely to achieve the desired result in the new position.

4. Communication Skills

Strong communication skills are integral to the success of a fractional technical director, who must communicate the nuances of a complex technical state to non-technical stakeholders.

The Future of SME Growth

The rise of fractional technical directors reveals an enormous shift in how SMEs can grow their business by overcoming technical hurdles, looking for scalable innovations, and implementing growth strategies in a cost-effective and sustainable way. With business accelerating at its current rate, the need for flexible growth solutions will only increase, and fractional technical directors will play a crucial role in the future of SME growth. 

Adding a fractional technical director as part of your business development strategy can help you navigate planning for growth with the expertise and flexibility to support sustainable growth. SMEs today have the opportunity to leverage this innovative approach to business development that allows them to stay resilient in a highly competitive environment and successfully exploit new opportunities for long-term growth and progress. 

To speak to someone on our team about a fractional technical director, get in touch with us today.