Glossary of Terms

Glossary of Terms

Advisory Board Membership: Fractional executives serve as advisors to the company’s leadership team or board of directors, providing strategic guidance and insights based on their expertise and experience.

Consulting: A consulting position typically involves providing expert advice, guidance, and solutions to individuals, businesses, or organizations in a specific field or industry. Consultants are hired on a contractual basis to address particular challenges, provide specialized knowledge, or offer strategic direction to help clients achieve their objectives. Consulting positions can range from advising on business strategy, management, and operations to offering expertise in areas such as finance, technology, marketing, or human resources. Consultants may work independently or as part of consulting firms, and their roles often involve analyzing problems, developing recommendations, and supporting clients in implementing solutions.

Contract Basis: Fractional executives work with a company for a specific duration or project, typically outlined in a contract. Once the project or timeframe is completed, the engagement ends unless renewed.

Fractional Executive: A fractional executive is a seasoned professional who provides part-time or temporary executive-level leadership and strategic guidance to businesses. Fractional executives typically work on a contractual basis, offering their expertise in areas such as CEO, CFO, CTO, or other C-suite roles, without the need for a full-time commitment. They often assist companies that may not require or cannot afford a full-time executive, providing flexible solutions tailored to the organization’s needs. They essentially act as high-level consultants, but with a more hands-on approach than a traditional consultant might take.

  • Part-time: Fractional executives don’t work full-time for any one company. They typically work with multiple clients, dedicating a set number of hours per week to each.
  • Expertise: These professionals have a proven track record of success in senior leadership positions. They bring their experience and knowledge to help companies address specific challenges or navigate periods of growth.
  • Hands-on involvement: Fractional executives go beyond just offering advice. They actively participate in decision-making and implementation, providing a more involved leadership role than a typical consultant.

Interim Management: Fractional executives fill temporary leadership roles within a company, such as CEO, CFO, or COO, during periods of transition, such as during an executive search or during a leave of absence.

Portfolio Career: A portfolio career for a fractional executive refers to the practice of combining multiple part-time or temporary leadership roles across different organizations or projects. Instead of working in a traditional full-time position within a single company, a fractional executive pursues opportunities to provide their expertise and leadership on a flexible basis to multiple clients or businesses. This approach allows fractional executives to leverage their skills and experience across various projects, industries, or sectors, diversifying their income streams and professional experiences. Portfolio careers for fractional executives often involve balancing different roles, responsibilities, and client engagements to maximize their impact and opportunities in the marketplace.

Project-Based: Fractional executives are brought in to oversee or lead a particular project from start to finish. Once the project is completed, their involvement may cease or transition to another project.

Part-Time Employment: In this arrangement, fractional executives work for the company on a part-time basis, dedicating a certain number of hours per week or month to their role. They may have specific responsibilities or oversee certain aspects of the business.

Retainer Basis: Companies retain fractional executives on an ongoing basis, paying a regular fee to access their expertise for a set number of hours or tasks per month. This arrangement provides consistent support without the need for constant renegotiation.