3 reasons to decentralize your team

Joseph Frost a member of the Entrepreneurs' Organization (EO) of Nebraska, is a decentralized entrepreneur, college professor of entrepreneurship, and three-time founder. He is the founder of yorCMO, the first decentralized leadership franchise company, and leads the Fractional Professionals Association, the first and only community for decentralized and 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 pace than ever. From these changes emerges a new leadership and hiring model: fractional.

Split hiring involves an executive joining an organization on a flexible, part-time basis, spending a fraction of the time of a full-time executive, at a fraction of the cost.

After speaking on the subject at EO's annual One Canada conference called "The Great Rethink", I was struck by how fascinated entrepreneurs are with new hiring models. Not only do new hiring models have a profitable impact on a business, but many entrepreneurs (more than I thought) are feeling the "pain points" of the repeating hire-onboard-leave cycle ad nauseum< /em> with full-time, permanent employees.

Entrepreneurs want alternatives, and now is the time because the market has officially changed.

The split leadership model became a viable reality after the pandemic. Propelled into the future of work, we are constantly changing the way we run businesses and the types of businesses we run.

Research backs it up: Over the next 5 years, 52% of the US adult workforce will work or have worked as a freelance contributor. And 63% of executives say they would become independent contractors if given the opportunity. The independent economy is one of the fastest growing phenomena in the country.

Then the "Great Resignation" happened. So many entrepreneurs I know panicked: retention, hiring, workforce ROI, ability to raise capital...it was all up in the air without the right people in place.

I realized that the "Great Resignation" would become our greatest opportunity.

The "fractional" model involves smallness, fragmentation and incompleteness. However, the leaders who join an organization in a fractional capacity are anything but small or fragmented, and neither is the impact they have on a business.

The new recruiting model isn't split: it's decentralized.

If decentralization reminds you of the governance philosophy behind Blockchain, you are right. You remember the Blockchain: a few years ago, all the entrepreneurs were talking about it and wondering how to integrate the Blockchain in their business.

Blockchain popularized it, but “decentralization” is becoming the dominant philosophy for the future of work.

A decentralized recruiting model flattens hierarchies and creates a deeper sense of interdependence, rather than authority, between leaders and teams. Decentralized leadership comes with flexibility, relinquishes control and brings creative ideas, and is ready for the future of work.

Here are three main advantages for a decentralized company...