How to hire a Fractional Product Leader

How to hire a Fractional Product Leader: A founder's guide

Welcome back to our Fractionals 101 series for Founders. If you've been following along, you're now familiar with what a Fractional Chief Product Officer (CPO) is and why bringing one on board might be the game-changer your startup needs. But how do you actually go about hiring one? And how does it differ from bringing on a consultant or a freelancer? Let's dive in and demystify the process.

Finding your perfect match

You're a founder with a brilliant health tech idea, maybe an AI-powered mental health app or a revolutionary patient monitoring system. You know you need experienced product leadership to bring it to life, but you're not quite ready (or funded enough) for a full-time CPO. Enter the Fractional Product Leader.

But where do you find this mythical creature who can swoop in, part-time, and transform your product strategy and build your product team and culture? Well, it's not as simple as posting on a job board and hoping for the best. The process is more nuanced, more... well, fractional.

Start by getting crystal clear on what you need. Are you launching a new product? Refining an existing one? Do you need someone to help you navigate the complex waters of healthcare regulations while also crafting a user experience that'll make your app the talk of the medical community? The more specific you can be, the better.

Once you know what you're looking for, it's time to start your search. Product studios specializing in fractional leadership (like us at The Fractionals, if we may toot our own horn for a moment) can be goldmines for finding experienced Fractional Product Leaders. These studios aren't just connecting you with talent; they're curating a pool of seasoned professionals and matching them to your specific needs. Don't be shy about asking for referrals from other founders in your network, either. The health tech community might be competitive, but it's also surprisingly collaborative when it comes to sharing insights about effective leadership models.

When you're reviewing potential candidates, look for that magic combination of sector experience and startup savvy. You want someone who's comfortable wearing multiple hats (because let's face it, in a startup, everyone does) but who also has the strategic chops to guide your product to market success.

Have conversations, not interviews

Interview processes are flawed in so many ways (that’d be a whole separate blog post). In this case, you’re hiring someone who is going to work very closely with you, and you need to be comfortable with them, and you need to feel confident that you’re actually going to listen to them. If you can’t get to that point then everyone is going to end up frustrated.

You can still tease out the answers to tough questions by asking about their approach to product development in the health tech space. How have they navigated regulatory challenges in the past? How would they go about building an innovative team culture? What are they comfortable helping you with and where does their expertise end?

It’s about you getting a clearer picture of how they might be able to help you specifically in the situation you are in.

This might be different for every founder, and every Fractional CPO. It might take one conversation, it might take multiple.

Remember, a Fractional Product Leader isn't just a hired gun – they're going to be an integral part of your team, even if it's only for a day or two a week. Make sure the fit feels right.

Make a decision quickly

If you were hiring a CPO and giving them big guarantees, and big salaries, you have to mull it over for longer, you have to be “surer”. But ultimately you can never be sure until you start working together.

With a Fractional, you can hire fast, and have a quick ramp down time if you need to go in another direction. You can also start with a small engagement (say a couple of paid workshops) and expand from there.

It’s more flexible and much lower risk, which means you don’t need to wait and worry too much. You can proceed with the confidence that while you think you have the right person, you can get out without too much trouble if you haven’t (and the same goes for the Fractional of course).

Fractional, consultant, freelancer: A rose by any other name?

Now, you might be thinking, "Isn't a Fractional Product Leader just a fancy term for a consultant or a freelancer?" Not quite. Let's break it down.

A Fractional Product Leader is like that friend who's always there when you need them, even if they're not around all the time. They're invested in your success, they're part of your team, and they're in it for the long haul (or at least for a significant chunk of your product development journey).

A consultant, on the other hand, is more like a wise sage you call upon for specific advice. They'll come in, share their wisdom on a particular problem, and then ride off into the sunset. Valuable? Absolutely. But not quite the same as having ongoing leadership and hands-on involvement. If you think you’re Fractional Product Leader sounds more like a strategy consultant who wants a guest spot on your meeting invite to talk “big picture” only, then they are NOT the person for you.

And a freelancer? They're the specialist you bring in for specific tasks. Need someone to code a particular feature or design a user interface? A freelancer might be your go-to. But they're not typically going to be involved in the bigger picture of product strategy and leadership.

Your Fractional Product Leader is going to be working more directly with you, rolling up their sleeves and getting their hands dirty (metaphorically speaking, of course – we're talking about digital products here, not gardening). They're not just advising from the sidelines; they're part of your team, invested in your success, and bringing their wealth of experience to bear on your specific challenges.

The cost of Fractional Leadership: removing the K

Ah, the million-dollar question. Or should we say, the fraction-of-a-million-dollar question? Lolz. How much does a Fractional Product Leader cost, and how does it compare to a full-time hire?

Here's a nifty little trick we like to call "Removing the K". Take the annual salary of a full-time CPO in your market, remove the last three zeros (the K), and voila – you've got a ballpark hourly rate for a Fractional Product Leader.

For example, if a full-time CPO in your area commands a salary of $250K, you're looking at around $250 per hour for a Fractional CPO. If it's more like $300K in your neck of the woods, think $300 per hour.

Now, before you start furiously calculating and comparing to full-time salaries, take a breath. Remember, you're not paying for full-time hours here. A typical Fractional engagement might be 1-2 days per week. So while the hourly rate might make your eyes water a bit, the monthly cost is significantly lower than a full-time salary.

Plus, you're not on the hook for benefits, equity, or any of the other costs that come with a full-time executive hire. And let's not forget the flexibility – you can scale the engagement up or down based on your needs and budget. Going through a critical phase and need more time? Ramp it up. Hit a lull or a budget crunch? Scale it back.

But perhaps the most important thing to remember is that you're paying for expertise that can hit the ground running. There's no three-month learning curve here. Your Fractional Product Leader comes in with a wealth of experience and starts adding value from day one.

Is a Fractional Product Leader right for you?

At this point, you might be thinking, "This all sounds great, but is it right for my startup?" It's a fair question. Bringing on a Fractional Product Leader is a big decision, and it's not the right move for every company at every stage.

Ask yourself: Do you need high-level product leadership, but can't justify (or afford) a full-time CPO yet? Is your product at a critical stage where experienced guidance could make a significant impact? Are you comfortable with a leader who isn't in the office full-time but can drive results remotely?

If you're nodding your head to these questions, a Fractional Product Leader could be the secret ingredient your startup needs to take your health tech innovation to the next level.

Ready to take the plunge?

If you're considering bringing a Fractional Product Leader on board, start by clearly defining your product goals and challenges. Determine your budget and desired time commitment. And then? Reach out. Talk to specialized product studios (like us at The Fractionals – shameless plug, we know, but hey, it's kind of our thing). Network with other founders who've been down this road.

Remember, in the fast-paced world of health tech startups, having the right product leadership can be the difference between a good idea and a market-changing innovation. A Fractional Product Leader offers a unique opportunity to access top-tier expertise without breaking the bank.

At The Fractionals, we're not just a network - we're a product studio that specializes in connecting health tech and wellness startups with experienced Fractional Product Leaders. We understand the unique challenges of this industry and can help you find the right fit for your specific needs, providing not just talent matching but comprehensive product leadership solutions.

Ready to explore how a Fractional Product Leader could accelerate your startup's growth? Let's talk about how we can help turn your health tech vision into reality. After all, in the world of startups, the right time is often right now.