3 reasons to decentralize your leadership team

Yusuf frost One Entrepreneurs Organization (EO) Member in Nebraska, is a decentralized entrepreneur, University Professor of Entrepreneurship and three-time founder. He . is the founder of yourCMO, the first decentralized leadership franchise business, and head the Fractional Professionals Association, the first and only community for decentralized, fractional executives and leaders. We asked Joe to explain the benefits of decentralized leadership. Here’s what he shared:

The world is changing at a faster rate than ever before. Among those changes emerges a new model for leadership and recruitment: the fractional.

Fractional hiring implies that an executive leader joins an organization on a flexible, part-time basis, spending a fraction of the time of a full-time leader—at a fraction of the cost.

After speaking on the topic “The Great Rethink” at EO’s annual One Canada conference, it shocked me how fascinated entrepreneurs are with the new hiring model. Not only do new hiring models impact a business profitably, but so many entrepreneurs (more than I have realized) feel the “pain point” of the hiring-onboarding-offboarding cycle that repeats nausea With full-time, permanent employees.

Entrepreneurs want alternatives, and the time is ripe as the market has officially turned.

The fractional leadership model became a viable reality after the pandemic. Emphasizing the future of work, we are permanently changing the way companies are run and the types of companies we run.

research Affirms it: In the next 5 years, 52 percent of America’s adult workforce will be either working or working as an independent contributor. And, 63 percent of executives say they’ll become independent contractors when given the opportunity. The independent economy is one of the fastest growing developments in the country.

Then, the “Great Resignation” happened. So many entrepreneurs I knew were terrified: retention, hiring, ROI on labor, ability to raise capital—everything was up in the air without the right people.

I realized that the “great resignation” would become our biggest opportunity.

“Partial” models mean shortness, fragmentation and incompleteness. However, leaders involved in a fractional capacity in an organization are anything but small or fragmented – nor do they impact a company.

The new hiring model is not fractional – it is decentralized.

If decentralization reminds you of the governing philosophy behind blockchain, you are right. You remember blockchain: A few years ago, every entrepreneur was talking about it and wondering how to integrate blockchain into their business.

Blockchain made it popular, but “decentralization” is emerging as the reigning philosophy for the future of work.

A decentralized hiring model flattens the hierarchy and creates a deep sense of interdependence, rather than authority, between leaders and teams. Decentralized leadership comes with flexibility, relinquishing control, and bringing in creative ideas – and ready for future work.

Here are the three primary benefits that decentralized companies experience:

1. Variety of Ideas

Decentralized recruitment, the strategic implementation of part-time and part-time leaders within the C-suite, is non-geo-centric. In a remote-first world of work, organizations have access to a wider, more diverse talent pool.

With the elimination of traditional geographic boundaries, companies have more options to bring in specific expertise from within their industry or outside of their industry. Specialization within the organization can reach new heights and diversity increases – both in terms of cultural background and thought. Hidden biases generated entirely from the local talent pool, such as conformity bias (AKA groupthink), are eliminated.

2. Culture of Decision Making

Decentralized leaders are often only physically (or virtually) present for a fraction of the work week. As a result, decentralized decision-making begets the culture: mid-level teams become empowered to make their own decisions without turning to an existing leader for continuous approval. It has been said that “means new money.” If nine out of ten people are willing to earn less money doing more meaningful work, then the companies of tomorrow should encourage meaningful work, autonomous decision-making, and satisfaction at the core of the operating culture.

As a result of the change in the decision-making hierarchy, the C-suite is freed up, with more time to focus on strategic planning. Micro-management is streamlined; Strategic thinking is organized.

3. Empowered Equity

Decentralization promotes a more equitable culture by flattening the structure of an organization. Partial executives, as part-time or independent leaders, often bring genuine, profound enthusiasm to a company’s success – one that is completely different from the traditional employer-employee work dynamic.

The shift in paradigm from “you work for me” to “I work for me and you” interconnects each individual’s success, creating an environment where all employees and leaders share common objectives and aligned incentives. We do. Teams feel more supported, and a stronger sense of belonging is created. When Control Centers integrated with Blockchain are finished, Power Dynamics shifts.

Ultimately, the decentralized work environment empowers employees to make their own decisions in local affairs and take higher ownership of their roles.

Entrepreneurs and leadership teams achieve higher efficiency, faster decision making and a more diverse work culture. Organizations overall become more creative, more flexible, save more costs, are fueled by energy, and have access to talent and ideas they would not normally encounter.

Still hesitant about decentralized, fractional hiring power? Consider one of my favorite quotes made famous by Seth Godin: “Change rarely fails because it’s too early. It almost always fails because it’s too late.”

The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.