What does a fractional product manager do?

In the tech world, products are becoming increasingly complex. Users now demand smarter, more intuitive solutions, and the complexity of even basic MVPs (minimum viable products) is skyrocketing. This complexity impacts both technical and product management roles on multiple levels and can lead to issues in startups where resources to hire full-time experts can be limited.

Enter the fractional product manager… This article defines the role of a fractional product manager (FPM), explains the advantages and disadvantages of the role, and outlines how you can transition into becoming one.

What is a fractional product manager?

A fractional product manager (FPM) is a part-time, contract-based product management professional who works with organizations on a limited and flexible basis. In this role, you would provide expertise and experience in areas like product strategy, product development, and operations (product DevOps).

In other words, FPMs are very experienced, often tract-based product managers that companies hire for important organizational development phases. They help the existing team with their expertise in certain specialized fields of product development.

Why do companies hire fractional product managers?

The most common reasons companies hire FPMs include:

Cost-effectiveness

One obvious reason for hiring fractional product managers is the cost advantage. PMs aren’t cheap. In addition to those costs, it’s often not possible to hire the experts you’re seeking on the free labor market. And if you find a good match, you still need to onboard the new hire and give them time to become fully effective.

On the other hand, fractional product managers are often available on short notice. They’re specialized and deliver immediate value for strategic topics. FPMs are typically hired on a short-term or project-based contract, eliminating long-term financial commitments. This is useful, especially for startups with limited budgets.

Flexibility and immediate impact

With their expertise and experience, fractional product managers are able to move quickly through onboarding and integrate into existing processes, workflows, and teams. FPMs also have the ability to work as much as they’re needed on dedicated topics, allowing them to scale up or down. This flexibility is particularly important during periods of rapid change and uncertainty.

Access to expertise and experience

With the rise of remote work, companies now have the opportunity to address a large pool of talent. This makes it easier to engage with fractional product managers and use their vast expertise and experience. Often companies already have a full-time role managing product development but need specialized expertise. In these situations, FPMs are a good solution to integrate external knowledge.

Growing complexity of product management

Multi-disciplinary roles like product management demand experience in many different areas like strategy, design, technology, marketing, and data analysis. Expecting a single person to be an expert in all these areas is optimistic or even just outright unrealistic.

Key differences between fractional product managers and product consultants

Although fractional product managers and product consultants may seem very similar, they differ a lot in terms of engagement models, focus, duration, and deliverables.

Part-time vs. short-term

Product consultants are typically hired for a specific question, challenge, or project on a short-term basis. After overcoming this challenge, the product consultant moves on from the company. On the other hand, fractional product managers work are integrated into the organizational structure of the company. As a part of the team, they work part-time but constantly in dedicated timeframes, like a few hours every week.

Hands-on vs. advisory

Fractional product managers are more hands-on roles, while product consultants act as external advisors.

Ongoing ownership vs. specific problem-solving

FPMs have a long-term commitment to a product development team, own the product roadmap, and lead the cross-functional team. Product consultants tackle defined issues, such as optimizing product-market fit, advising on competitive positioning, or conducting market research, without the hands-on mentality and the long-term commitment.

The following table helps further clarify the two roles:

Challenges faced by fractional product managers

Fractional product managers are often freelancers. They work on their own terms and are single-handedly responsible for all the vital parts of their business. This leads to some major challenges fractional product managers need to overcome to be successful.

Some of these challenges include:

Client acquisition

FPMs often compete with consultants and clients usually don’t know the difference between an FPM and a consultant. Standing out in the crowded field of product management advisory is hard, especially for those new to fractional work.

FPMs need to build trust because companies often hesitate to hire part-time professionals. In addition to that, FPMs face the challenge of closing. Convincing potential clients of the value of an FPM takes time and decision-makers may need education which leads to long sales cycles.

In this role you need to leverage a big network of existing connections to find opportunities. Often referrals from past clients are the fastest way to secure new projects. It also helps to find a niche in a specific domain, since it’s easier to network and be known as an expert where there’s less competition.

Limited organizational authority

Because FPMs are external part-time resources, they may face resistance from internal teams or stakeholders and may lack the authority to make decisions that affect the organization on a broader level. Teams may perceive them as outsiders, challenging their decisions. They may even mistrust the FPMs, withhold information, and work against them.

FPMs need to establish trust, as well as clear roles and responsibilities. In the first weeks, a FPM may focus on forming strong connections and relations with both the team and the stakeholders. To make the right decisions FPMs must base their decisions on facts and data and demonstrate value early by achieving small but impactful results.

Income variability

One major challenge FPMs face is that client projects may vary a lot and end unexpectedly. Seasonal demand may also be a condition some FPMs face especially when they’re exposed to niches. For longer contracts, clients may also try to negotiate lower rates, leading to potential underpayment, especially when seasonal demand drops.

To help with this, FPMs may diversify their client base across different industries or regions. They need to build a financial buffer to cover periods without active projects and income. It’s also a best practice to negotiate ongoing retainers with clients for more predictable income and consistent engagement.

Multiple clients

On the one hand, multiple clients are key for running a successful FPM business, but with multiple clients and the security of having multiple income streams also comes additional challenges. Juggling multiple clients and projects requires a lot of effort and focus. Diversifying into different industries also leads to a bigger cognitive load on the FPM.

FPMs need to balance the workload and introduce strict timing rules. Meetings should be organized at dedicated days / time slots for each client (e.g. Monday and Tuesday client A, Wednesday and Friday client B). To organize the tasks, it’s recommended to use a task management tool like Jira, Trello, or similar tools.

How to transition to a fractional product management role?

Becoming a FPM requires credibility, a good network, and a skill set to find and attract new clients. Besides that, you need to be able to deliver strategic and operative value on a part-time basis.

Here are some steps you need to consider in building your FPM business:

1. Assess your skills and create a skill-package

Identify your core strengths and core product management skills (e.g. road mapping) and build your value proposition. Develop a clear pitch that communicates how you can deliver high value to your customers. Map out how you can help them achieve specific outcomes as a fractional product manager.

2. Create a portfolio and online presence

Document your successes, write case studies, and collect testimonial or metric-driven examples of your previous roles. Optimize your online presence, write a blog, and actively use LinkedIn or other social media platforms to advertise your knowledge by sharing valuable content.

3. Network and client outreach

Leverage your existing network and build a big professional network of leaders and decision-makers. Let past colleagues, managers, and professional contacts know about your transition and reach out to them. Talk to them personally, but also leverage social media, online posts, blog posts, or direct messaging.

You can also target startups and scaling companies that are in dire need of product management support, but may not have the budget for a full-time product management role.

Joining local communities is also often a good tip to engage with your peers and create a great reputation.

4. Offering and pricing

Research market rates and look for similar roles in the industry and region. FPMs often charge high hourly rates between $100 and $200 per hour. However, this is highly dependent on the scope and the expertise you provide.

Start small and then scale. If you’re new to fractional product management, consider a lower price point until you build yourself a good reputation in the industry and region. You can also offer flexible packages for hourly work, monthly work, and projects dependent on the topic and the client.

Tips for managing the first few months and building a portfolio

Besides building your business and finding your clients, running the FPM business has its own challenges. Follow these tips to hit the ground running in your first few months:

1. Focus on setting clear priorities — Identify the most pressing issues and prioritize these issues first
2. Use metrics — Collect and use metrics to decide important strategic steps.
3. Reduce meeting loads — Since you’re only attending part-time, you should see your time as even more valuable and therefore reduce unnecessary meetings
4. Build relationships — Relationships are key to getting things done. Build good relationships internally with team members as well as with stakeholders in your professional network
5. Communicate early, clear, and often — Communication is very important in your role as an FPM, so focus on transparent clear communication at the right point in time
6. Avoid office politics — Since the FPM is a strategically important position you can’t get into office politics. Stay focused on fact-based decision-making, and avoid internal political fights
7. Invest in yourself — Invest in your knowledge and yourself. Don’t only focus on your clients but also build your social media profiles and network reputation
8. Stay organized — Use project management tools and time tracking to juggle multiple tasks for multiple clients
9. Continuously improve — Continuously improve your skills, tools, and infrastructure as well as your assets like your profiles and networks

Key takeaways

Fractional product managers are strategic part-time project managers who help companies with specialized skills and vast experience. The role is becoming increasingly relevant in today’s dynamic business landscape because it offers a flexible and cost-effective way for companies to deal with challenges. It’s especially valuable for startups and scaling companies that need specialized experience but aren’t willing to pay a full-time hire.

In contrast to consultants, FPMs offer both strategic ideas and execution. To be a successful FPM, build strong relationships, communicate clearly, and base your decisions on data and facts. Good luck, and thank you for reading!

Featured image source: IconScout

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