Fractional executive vs consultant

A fractional executive is on your org chart. They own a function, attend leadership meetings, hire team members, and are accountable for outcomes. A consultant is on their firm's org chart. They deliver a project — usually a strategy, a market study, or an implementation — then leave. The distinction is ownership, not seniority.

You need someone to run marketing, finance, product, or operations for the next 6 to 18 months. You need to hire, fire, and manage. You need someone on your board update as a company officer. You need continuity, not a report.

You need a defined deliverable — a pricing study, a market entry plan, an M&A model, a system implementation. You need brand-name credibility for a board or investor. You need specialized expertise for 4 to 12 weeks without adding to headcount signals.

Fractional executives cost $6,000 to $20,000 per month on retainer. Independent consultants cost $2,000 to $5,000 per day. Firms (McKinsey, Bain, BCG) cost $150,000 to $500,000 per project. Boutique firms cost $75,000 to $200,000 per project. Same senior operator, different pricing model.

The line blurs. Many fractional executives take short consulting projects between retainers. Many boutique consulting firms embed partners as fractional operators. When evaluating, ask: 'Who owns the outcome if this fails?' If the answer is 'the consultant,' it is a consulting engagement. If it is 'the operator, alongside the CEO,' it is a fractional executive engagement.