Fractional vs Consulting
by Peter Sankauskas
I wanted to share my thoughts on the differences between hiring a fractional CTO and a consultant, as their are many.
When you hire a Fractional CTO, you are hiring a part-time, fully embedded technical leader. Similar to a full-time CTO, they will report to the Founder or CEO and be a member of the executive team - handling strategic decisions and leadership of the engineering team.
A consultant does not have these responsibilities. They are typically hired to come in and help with a specific project or task. Consultants are not normally a member of the executive team nor do they have people reporting to them. A Fractional CTO will set up a hiring pipeline and interview process to build an exceptional engineering team.
A Fractional CTO does not have a contract end-date. Their goal is to build the initial team and product, quickly find product-market fit, and then either transition to full-time or help find a full-time CTO to take the company to the next level.
For startups and small companies who need to move fast and keep costs low, a Fractional CTO is a great option. Founders avoid paying full-time executive salary, giving up equity, and covering benefits, while still getting someone committed to the company’s long-term success.
Another benefit of a Fractional CTO is just how quickly they can ramp up and be productive. Having been through the experience multiple times, they know the right questions to ask, how to build rapport quickly, and get results.
Breakdown comparison
| Aspect | Fractional CTO | Consultant |
|---|---|---|
| Role | Part-time executive team member | Project-based advisor |
| Reporting | Reports to Founder/CEO | Reports to project sponsor |
| Team Management | Hires and manages engineering team | Typically no direct reports |
| Duration | Long-term, no end date | Short-term, project-based |
| Focus | Strategic leadership and execution | Specific project or task |
| Commitment | Embedded in company culture | External advisor |
| Cost Structure | Part-time executive rate | Project-based fee |
| Success Metrics | Company growth and team development | Project completion |
It is these difference why I have chosen the path of a Fractional CTO, and I’m not alone. You can learn more about other Fractional roles and on the wonderful Fractionals Defined site, and see why founders love the benefits.
If you are interested in learning more about what I can bring to the table, I’d love to chat!