Will the fractional CMO wave hit the HK marketing industry? CMOs weigh in

Recently, the term “fractional CMO” – FCMO – has been gaining traction in the marketing industry. Simply put, a fractional CMO, or FCMO, is an outsourced role where an organisation hires an external expert to helm the role of the CMO without having to commit to the cost of a full-time one.

This has seen the recent launch of Fractional by a collective of Southeast Asia-based chief marketing officers. Fractional is a new operator model with the goal of solving the marketing leadership gap in hyper-growth companies.

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However, in Hong Kong, this new role doesn’t seem to be as popular as it is in the rest of APAC, and the term seems to have divided opinion on the benefits and pitfalls. In a conversation with MARKETING-INTERACTIVE, Jordan Cheung, chief marketing officer, Hang Seng Bank, said the concept of hiring a fractional CMO is an intriguing idea that can enhance business agility. Although this trend is gaining popularity overseas and in specific industries, it has yet to become common in Hong Kong.

On the other hand, Agnes Lung, executive director and chief marketing and digital Officer at Uni-China Group, said given the ongoing talent crunch issue in Hong Kong, and the early retirement of some seasoned marketers, it is a good timing for companies to consider hiring a fractional CMO.

This is similar to ‘slashers’, which typically describes the younger generation who take on multiple careers instead of sticking to one single position.

"This can help retired marketers or marketers who wish to pursue other goals, develop their sense of fulfillment to the society,” she added.

In fact, the fractional model isn’t isolated to the marketing function alone, with finance and legal teams also being introduced to such structures, according to Keith Wong, country director of Hong Kong, Shanghai, and Singapore at HR and recruitment company Links International.

“From a candidate perspective, it offers them wider exposure to work on different projects without committing to a full-time job, and greater work-life balance. It also allows them to gain an understanding of different business models in various industries,” Wong said.

Opportunities brought by the fractional CMO role

While it is still too early to tell whether this latest model in town can really work in the long run, Ronald Wong, chief marketing officer, TamJai International, said the new role has reflected the speed of the marketing evolution, and the need for companies to stay competitive by getting hold of valuable and relevant marketing experience.

“The beauty of it is the opportunity to cross-pollinate trending marketing knowledge from subject matter experts who come in as a fractional CMO. This is typically harder to do with an in-house, long-term CMO, who already has his/her own preferred ways of working and area of expertise,” he said.

The fractional CMO trend is gaining popularity for several reasons – it is particularly useful for traditional companies planning a revamp; or a transformation can also benefit from a FCMO when transitioning from a product-centric to a customer-centric approach, according to Irene Ho, chief marketing officer at Sun Life HK.

As for small-and-medium enterprises looking to expand their operations or are in the process of transitioning to a more data-driven, customer-centric approach for long-term growth, a fractional CMO can help them build the necessary structures and operational models, she added.

Start-ups that may not have the resources or ability to hire an experienced marketer can also benefit from the trend, she added.

Such companies often excel in developing new products or services, but they may lack the consumer insights necessary to successfully launch these offerings.

Echoing Ho’s views, Hang Seng’s Cheung said fractional CMOs can gain a comprehensive understanding of a company’s operations more easily in such cases. “Start-ups also require fresh ideas to facilitate a rapid business expansion, and fractional CMOs can bring in their past experiences to drive growth.”

Would a fractional CMO be able to get that deep with the data?

Given their temporary nature, industry players MARKETING-INTERACTIVE spoke to said it may be challenging for a fractional CMO to provide insights on a company’s long-term strategy and development.

In well-established companies, the CMO is responsible for setting the overall marketing strategy to align with business objectives, according to Hang Seng’s Cheung.

This entails understanding the business performance, complex business lines, identifying gaps, assessing the competitive landscape, and analysing consumer needs through extensive data analysis, he said.

Building strong relationships with different internal departments is crucial to creating synergy and driving transformation.

However, as a fractional CMO typically works on a part-time basis and is new to the company, they may face challenges in achieving these objectives and require more time to make a noticeable impact, he added.

As such, the engagement model a company has with the fractional CMO should also be different from that of a full-time CMO role, according to TamJai’s Wong.

Assuming the fractional CMO is coming in to address specific business challenges as a subject matter expert, and the scope of work is clearly defined, then they should still be able to conduct an in-depth analysis because experience does matter in helping to narrow down the areas of inquiry, he added.

However, CMOs will often need to factor in qualitative data in their analysis, especially from key stakeholders, he added. “So, this may take longer for a fractional CMO who will need time to get this right compared to a full-time CMO who already can navigate through the organisation relatively easily.”

In other words, if a CEO is serious about customer-centric growth beyond the current financial year, they will need someone who can identify and connect the dots between the gaps and opportunities, both internally and externally, according to Shufen Goh, co-founder and principal at R3.

The role of a chief marketing officer cannot be a part-time position if a company is serious about marketing as a growth driver.

Things to bear in mind before hiring a fractional CMO

To build a long-term successful relationship with fractional CMOs, companies need to consider the pitfalls and limitations of a part-time hire.

Sun Life’s Ho said a data-driven, customer-centric strategy is a long-term endeavour that requires continuous learning and refinement. “A short-term hire may not be ideal for companies looking for sustained strategic guidance.”

Factors to consider include whether there is a specific need for a one-time project, or if the fractional CMO will serve as an interim solution during a transition period before a permanent CMO is appointed, she added.

TamJai's Wong said:

Another thing companies need to consider is that fractional CMOs often come in on a consulting basis so they may focus on short term wins to prove their worth. 

“If the company’s plan involves a longer term execution effort – especially one that permeates through various departments in an organisation such as digital transformation – companies will have to ensure there’s the right talent and resources internally to follow through, simply because, fractional CMOs aren’t here to stay,” he added.

Meanwhile, building a trustful relationship is crucial for the success of a fractional CMO. Hang Seng’s Cheung said trust should be established between the fractional CMO and the company, with the understanding the role can be sustainable.

“Trust should also be fostered between the CEO and the fractional CMO, ensuring that the necessary authority and autonomy are provided. Additionally, trust from the team and other business units is essential, as they need to recognise the value that a fractional CMO can bring to support the company’s growth,” he added.

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