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As market pressures continue to squeeze real estate brokerages and startup tech companies alike, many leaders are discovering a smarter, more scalable way to build momentum — without committing to full-time executive hires. Enter fractional leadership.
“Fractional leadership is about getting high-level, strategic expertise without the cost or time commitment of a full-time executive,” says Laura O’Connor, a veteran operator in the brokerage and proptech space. “It’s agile, focused and designed to solve specific problems with measurable results.”
What is fractional leadership?
Fractional leaders are seasoned executives — often with 10 to 20-plus years of experience — who step into part-time roles to guide companies through pivotal transitions. Unlike consultants, fractional leaders don’t just advise; they sit at the table, lead internal teams, build systems and stay long enough to see outcomes through.
“They don’t just hand you a report and leave,” O’Connor notes. “They’re hands-on, often attending key team meetings and actively managing initiatives. They offer flexibility and cost control, while also transferring knowledge to internal staff.”
This model is especially valuable for broker-owners and founders at a crossroads: scaling, selling or trying to innovate without disrupting day-to-day operations.
Why enterprise companies are turning to fractional leaders
Enterprise brokerages and tech firms often use fractional executives to bridge leadership gaps, especially when there’s C-suite turnover or a need for specialized transformation, like integrating AI or restructuring operations.
In one case study, a large brokerage hired a fractional CMO and an outsourced marketing team instead of building a full-time internal department. The result? A cost savings of $240,000 annually and better outcomes from more specialized resources.
“You can deploy a team of fractional leaders to assess, optimize and transition your business — for less than the salary of one traditional exec,” O’Connor explains. “That’s incredibly powerful, especially in uncertain markets.”
T3 Sixty’s Talent division, T3 Talent, which is headed up by Dan Breault, has seen the decline in employment firsthand based on daily conversations it has with both job candidates and employers. “Brokerages have eliminated staff positions and have added additional job responsibilities to existing employees. As of August 2024, virtually no one was adding net new positions.” Breault emphasizes. “Again, if you’re looking for contract or fractional talent, the chances are good that the talent is available.”
How growing brokerages can benefit
For smaller companies — think independent brokerages with 20 to 50 agents — fractional leadership is often the first right hire.
“Too often, these brokerages jump to hiring a virtual assistant or bring in a family member with no real systems in place,” says O’Connor. “But unless someone builds the SOPs, onboarding guides and defines roles — those hires don’t work.”
Instead, a fractional COO, CMO or CTO can step in for as little as five to 10 hours a month to design processes, manage offshore or junior staff, and set the company up for scale. They’re not interns — they come with real-world experience and metrics to back it up.
A smarter transition plan for aging broker-owners
One of the most compelling use cases for fractional leadership is succession planning. Many brokerage owners nearing retirement face tough decisions: Should they sell, promote someone internally or wind down?
O’Connor emphasizes that legacy owners often underestimate how much they do — and struggle to translate that into a viable leadership transition plan. A fractional executive can come in to:
- Shadow the current owner
- Document processes and responsibilities
- Identify and train a successor (internal or external)
- Build a job description rooted in reality, not guesswork
Start with a strategic leadership audit
If you’re unsure where to start, O’Connor recommends beginning with a strategic team audit. For residential real estate brokerages, O’Connor offers an organizational assessment exercise that delivers detailed roles and responsibilities for each person supporting the brokerage and outlines the specific details for their next hire.
This 30- to 60-day engagement positions the fractional leaders and business owner to observe, assess and map out your team’s structure — identifying misalignments, gaps and opportunities.
“Before we recommend adding any new support — whether it’s a fractional exec, a virtual assistant, an outsourced team or automation — we take the time to roll up our sleeves and understand the current picture. Who’s doing what? What’s falling through the cracks? Are people working in their zone of strength? That clarity creates a foundation we can build on — so any new layer of support amplifies your existing team, rather than creating more noise,” says Daniel Butbul of Systato.
“From there,” O’Connor explains, “you can move into a 90-day focused project — whether that’s building onboarding systems, launching a new brand strategy or managing a marketing team.”
Fractional leadership isn’t a trend; it’s a flexible, future-ready model built for the realities of modern business.
“Brokerages and tech companies don’t need to jump into another full-time hire,” says O’Connor. “They need someone who can get in, lead and leave things better than they found them.”
Whether you’re looking to scale up, clean house or hand off your legacy, the right fractional leader might be your most brilliant next move.
Amy Chorew is an active Realtor involved in investment properties and listing well-staged homes in Connecticut. Connect with her on LinkedIn and Instagram.
