Let's be honest - it's confusing as hell out there.
You're a founder who needs support. But should you hire a full-time exec? A fractional leader? A consultant? Someone else entirely?
The business world loves to overcomplicate things, slapping fancy labels on roles without explaining the crucial differences. At Shepherd, we've had countless conversations with founders trying to untangle this web of options.
So let's cut through the noise and break down what these roles actually mean, how they differ, and when you should use each one.
Full-Time Executive: The Traditional Route
What they actually do
Full-time execs are the classic company leaders. They're permanent fixtures who handle both big-picture strategy and day-to-day operations. This is your traditional CEO, CFO, CMO, or COO.
Integration level
They're all-in, completely embedded in your company. They lead teams, shape culture, and navigate company politics. They're in the trenches every day.
Do they have decision power?
Absolutely. They have the authority to make significant decisions and are on the hook for outcomes.
Commitment
It's substantial – 40+ hours weekly with the expectation they'll stick around for years. This is a long-term relationship.
Cost structure
Let's not sugarcoat it – they're expensive. You're looking at full salary, benefits, bonuses, and often equity. For startups and SMEs, this is a major financial commitment.
Expertise level
These folks typically bring broad experience across multiple functions. They've usually developed their chops across several roles and organisations.
Do they execute or just advise?
Both. They balance high-level thinking with operational oversight. While they might delegate specific tasks, they're ultimately accountable for making things happen.
Flexibility
Limited. You can't easily scale up or down a full-timer's involvement as your needs change. Once they're in, they're in.
When to use them
When you need consistent leadership in a stable or growing organisation, and when a function needs constant attention. This is the go-to when leadership continuity is critical.
Accountability
With their position comes complete accountability for departmental or organisational results, not just advice or deliverables.
Availability
These executives are fully dedicated to a single organisation, providing consistent focus and attention.
Fractional Leader: The Smart Middle Ground
What they actually do
Fractional leaders occupy that sweet spot between full-timers and everyone else. They're part-time but deeply embedded leaders who handle both strategy and execution. They're the "thinker-doers" of the business world, providing executive-level leadership on a part-time basis.
Integration level
Despite being part-time, these folks are genuine members of your leadership team. They attend your exec meetings, make key decisions, lead teams, and integrate into your operations. They're not outsiders looking in – they're insiders who just happen to work fewer hours.
Do they have decision power?
Yes. They have real decision-making authority within defined parameters. Like full-timers, they're accountable for outcomes, though typically within a more focused scope that you agree on upfront.
Commitment
Typically 1-3 days per week over an extended period. While not full-time, the relationship is structured and continuous rather than project-based or sporadic.
Cost structure
Fractional leaders usually operate on a retainer or day rate basis. This gives you access to executive-level talent at a fraction of the full-time cost – hence the name "fractional."
Expertise level
These are senior executives with previous C-suite or VP-level experience who now apply that expertise across multiple client organisations. They've been there, done that, and have the scars to prove it.
Do they execute or just advise?
Both – and this is their superpower. Unlike consultants or advisors, fractional leaders don't just tell you what to do; they roll up their sleeves and help you do it. They execute the strategies they develop.
Flexibility
Significant. You can scale their involvement up or down based on your business needs. Need more help during a critical quarter? No problem. Need less once things stabilise? That works too.
When to use them
During growth phases, transitions, scaling initiatives, or when filling leadership gaps. They're perfect when you need executive-level expertise but can't justify (or afford) a full-time position.
Accountability
Like full-time executives, fractional leaders are held accountable for concrete results rather than just recommendations or advice.
Availability
While not exclusively dedicated to one organisation, fractional leaders maintain consistent availability within agreed parameters, typically supporting 2-4 clients simultaneously.
Consultant: The Specialist
What they actually do
Consultants are external experts who provide specialised advice and solutions, typically on a project-by-project basis. Their focus tends to be narrower than executives, zeroing in on specific challenges.
Integration level
Limited. While they might work alongside your team, consultants remain distinctly external. They rarely lead organisational functions or become part of your leadership structure.
Do they have decision power?
Not really. Consultants make recommendations that you then choose to implement (or not). The ball stays in your court.
Commitment
Short to medium-term with clearly defined deliverables and endpoints. While some consulting relationships extend over time, they're fundamentally project-based rather than ongoing leadership roles.
Cost structure
Typically hourly, daily, or project-based fees. Rates vary widely based on expertise, reputation, and the consultant's perceived value.
Expertise level
Consultants tend to be subject-matter experts with deep but relatively narrow specialisation in particular domains or methodologies.
Do they execute or just advise?
Primarily advisory. While exceptional consultants might assist with implementation, their focus is typically on analysis, planning, and recommendations rather than execution.
Flexibility
High. You can bring consultants in precisely when their expertise is required and dial them back when it's not.
When to use them
When you're tackling specific projects, need specialised analysis, or are guiding a transformation initiative requiring specialised knowledge.
Accountability
Unlike executives, consultants typically aren't held directly accountable for results – their responsibility extends to delivering quality recommendations rather than ensuring implementation success.
Availability
Consultants are available as contracted, often serving multiple clients simultaneously. Their time allocation follows project requirements rather than regular schedules.
Advisor: The Wise Counsellor
What they actually do
Advisors provide ongoing guidance and high-level advice without getting involved in operations. Their contributions centre on strategic input and perspective rather than implementation.
Integration level
Minimal. Advisors typically interface only with senior leadership rather than teams or departments. They're distinctly separate from your organisation.
Do they have decision power?
No. Advisors lack formal decision-making authority. They function as trusted sources of input for your decisions, but you call the shots.
Commitment
Ongoing but infrequent engagement, often through regular meetings or as-needed availability. Think monthly check-ins or occasional calls when you face a challenge.
Cost structure
All over the map. Arrangements range from formal retainers to equity to unpaid relationships based on mutual respect and benefit.
Expertise level
Advisors might bring specialist knowledge in particular domains or broad generalist perspective from relevant experience. Their value is in their perspective, not specific technical skills.
Do they execute or just advise?
Purely advisory. Advisors don't roll up their sleeves – they provide perspective and counsel without executing tasks or leading functions.
Flexibility
High flexibility, with engagement levels that can be adjusted as needs change. They're there when you need them, not when you don't.
When to use them
For board input, strategic guidance, and leveraging professional networks. They're particularly valuable for specific challenges that benefit from their unique expertise or perspective.
Accountability
Unlike executives and fractional leaders, advisors aren't held accountable for business outcomes. Their responsibility extends only to providing thoughtful and honest guidance.
Availability
Advisors make themselves available as agreed upon, which may range from scheduled monthly meetings to on-call arrangements for specific situations.
Mentor: The Personal Guide
What they actually do
Mentors focus on personal and professional development, sharing their experience to help founders and executives grow. Their goal is developing you as an individual rather than driving organisational outcomes.
Integration level
External. Mentors engage directly with specific individuals rather than teams or departments. They have no formal place in your organisational structure.
Do they have decision power?
None. Their influence comes through developing your own decision-making abilities, not making decisions themselves.
Commitment
Typically ongoing but low-intensity – regular check-ins or as-needed guidance. Think coffee every few weeks or a call when you're facing a challenging situation.
Cost structure
Often free or low-cost, driven by the mentor's desire to give back. Some structured mentoring programs might involve modest fees, but many mentor relationships are built on goodwill.
Expertise level
Broad experience and wisdom gained through their own career journey, often with emphasis on leadership development and business fundamentals.
Do they execute or just advise?
Purely advisory. Mentors don't execute business functions – they focus on developing your capabilities rather than implementing solutions themselves.
Flexibility
Significant. Mentoring relationships typically adapt to your needs and both parties' availability.
When to use them
For personal growth and professional development. Mentors help you navigate challenges and growth opportunities through shared experience. They're about making you better, not directly making your business better.
Accountability
Mentors bear no accountability for organisational outcomes, focusing instead on the mentee's personal and professional growth.
Availability
Mentors make themselves available as agreed upon, which may range from regular scheduled meetings to occasional situation-specific guidance.
Freelancer: The Task Master
What they actually do
Freelancers execute specific tasks or projects. They're doers rather than advisors, focusing on tactical delivery rather than strategic direction.
Integration level
Minimal. Freelancers work independently on defined deliverables without deep involvement in team dynamics or company culture.
Do they have decision power?
Not typically. While they might have autonomy within their specific task, freelancers lack formal decision-making authority in your organisation.
Commitment
Short-term and project-focused, with a clear beginning, middle, and end. Once the deliverable is complete, so is the relationship (until the next project).
Cost structure
Usually hourly or project-based fees. Rates vary widely based on skills, experience, and market positioning.
Expertise level
Specialised, hands-on skills in specific domains – think design, development, content creation, or marketing execution.
Do they execute or just advise?
All execution. The defining characteristic of freelancers is their focus on producing deliverables rather than giving recommendations.
Flexibility
High. Bring them in precisely when their specific skills are required, and not when they aren't.
When to use them
For delivering specific tasks requiring specialised skills – design work, coding, content creation, marketing implementation, etc.
Accountability
Freelancers are held accountable for specific deliverables rather than broader business outcomes. Their responsibility is limited to the quality and timeliness of contracted work.
Availability
Freelancers are available as contracted, often serving multiple clients simultaneously with availability that follows project requirements rather than regular schedules.
How to Choose the Right Option for Your Business
So with all these options, how do you decide? It comes down to a few key factors:
Your stage of growth
- Early-stage startups often get the most bang for their buck with fractional leadership. You get expert guidance without emptying your bank account.
- Growth-stage companies might mix and match – perhaps a full-time CEO and CFO with fractional leaders in other areas.
- Mature organisations typically have a core of full-timers while bringing in consultants, advisors, and freelancers for specific initiatives.
Your budget reality
Let's be real – money matters. Full-time execs are the priciest option but also represent the greatest commitment. Fractional leaders offer significant value at more accessible price points. Consultants, advisors, and freelancers can be engaged with even more financial flexibility.
What actually needs to be done
It's not just about what function you need filled, but how it needs to be filled:
- Need someone to take strategic and operational responsibility? Full-time or fractional leadership
- Need specific expertise for a defined project? Consultant
- Want high-level guidance without day-to-day involvement? Advisor
- Looking for personal development and growth? Mentor
- Just need specific tasks executed? Freelancer
How fast you need to move
How quickly do you need to fill the gap? Fractional leaders, consultants, and freelancers can typically be engaged more rapidly than recruiting full-time executives, which often involves lengthy search and negotiation processes.
Why Fractional Leadership Is Taking Over
The rise of fractional leadership represents one of the biggest shifts in how businesses access executive talent. And for good reason – it bridges the gap between full-time executives and project-based consultants, offering unique benefits:
Get expertise you couldn't otherwise afford
Let's be honest – many growing businesses simply can't afford (or justify) full-time executive salaries for every function. Fractional leadership democratises access to senior talent, allowing you to benefit from expertise that would otherwise be out of reach.
Align with business reality, not arbitrary work weeks
The predictable 40-hour workweek makes little sense for many executive functions, especially in smaller organisations. Some roles might need 10-15 hours weekly of genuine executive attention, with the rest potentially handled by more junior team members or systems. Fractional models right-size the engagement to what you actually need.
Benefit from multiple perspectives
Fractional leaders typically work with 2-4 clients simultaneously. This cross-pollination brings fresh perspectives, industry insights, and battle-tested strategies that a full-time executive focused solely on your business might miss.
Less risk, faster impact
Engaging a fractional leader involves less risk than committing to a full-time hire. The lower financial commitment combines with typically shorter ramp-up periods (since fractional leaders are experienced at quickly assessing and adding value to new organisations) to create faster ROI.
The Future of Work Is Flexible (And That's a Good Thing)
The rigid structures of traditional employment are rapidly evolving. Today's most successful organisations recognise that talent doesn't necessarily need to be full-time to be fully effective.
By strategically combining different leadership models – full-time execs, fractional leaders, consultants, advisors, mentors, and freelancers – you can create dynamic, responsive teams that adapt to your changing needs.
The key is understanding the distinct value each model provides and making intentional choices rather than defaulting to traditional approaches simply because "that's how it's always been done."
For growing businesses in particular, fractional leadership represents a powerful opportunity to access executive-level expertise within realistic budget constraints. As work continues to evolve, the companies that thrive will be those that embrace flexibility and focus on securing the right talent in the right arrangement for their specific stage and challenges.
About Shepherd: Connecting Ambitious Companies with Exceptional Fractional Leaders
At Shepherd, we're pioneering the future of work by connecting ambitious companies with exceptional fractional leaders. Our carefully vetted marketplace brings together businesses seeking flexible leadership solutions with experienced executives who've chosen the fractional path.
Whether you need a strategic CFO two days a week, a marketing leader to drive growth initiatives, or technology leadership to guide digital transformation, Shepherd provides access to the executive talent you need on terms that make sense for your business.
Ready to explore how fractional leadership can transform your organisation? Get in touch today.
