The Origin of "Fractional"
The term "fractional" in business comes from the concept of fractional ownership—sharing ownership of high-value assets like private jets, yachts, or vacation properties. Rather than bearing the full cost and commitment of ownership, multiple parties share the asset and its expenses.
Applied to executive talent, "fractional" means the same principle: companies share access to senior executives, each getting a fraction of their time—and paying a fraction of what a full-time hire would cost.
How Fractional Executives Work
Time Commitment
- 1-3 days per week typical
- Regular, ongoing engagement
- Flexible scheduling
- Often hybrid/remote
Multiple Clients
- Serve 2-4 companies simultaneously
- Diversified experience
- Cross-pollination of ideas
- Portfolio career model
Engagement Model
- Day rate or monthly retainer
- Contractor/consultancy basis
- 6-12+ month typical duration
- Flexible terms
Role Scope
- Full executive responsibilities
- Join leadership team
- Own their function
- Board/investor interface
Fractional vs Other Executive Models
| Aspect | Fractional | Interim | Consultant | Full-Time |
|---|---|---|---|---|
| Time | 1-3 days/week | 4-5 days/week | Project-based | 5 days/week |
| Duration | Ongoing | 3-12 months | Project | Permanent |
| Clients | Multiple | Usually one | Multiple | One |
| Accountability | Own function | Own function | Advise only | Own function |
Common Fractional Executive Roles
The fractional model applies across all C-suite and senior leadership positions:
Fractional CFO
Finance leadership
Fractional CMO
Marketing leadership
Fractional CTO
Technology leadership
Fractional COO
Operations leadership
Fractional CHRO
HR leadership
Fractional CRO
Revenue leadership
Who Uses Fractional Executives?
The fractional model is most commonly used by:
- Startups (Seed to Series B): Need senior expertise but can't afford or justify full-time C-suite
- Scale-ups: Growing fast and need to professionalize functions
- PE-backed companies: Portfolio companies needing quick capability injection
- SMEs: Established businesses accessing skills typically reserved for larger companies
- Turnarounds: Companies needing specific expertise for transformation
Benefits of the Fractional Model
Cost Efficiency
Access senior talent at 50-70% of full-time cost. Pay only for time needed.
Flexibility
Scale up or down as needs change. No long-term employment commitments.
Experience
Often more experienced than affordable full-time hires. Been there, done it.
Speed
Start in weeks, not months. No lengthy recruitment process.
In Summary: "Fractional executive" means a senior leader who works part-time (1-3 days/week) with multiple companies, providing C-suite expertise at a fraction of full-time cost.