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At one level, these terms—fractional Director, Fractional Executive, Fractional Leader and Portfolio Executive—could be seen as interchangeable. Still, with the rising popularity of fractional, I am keen to preserve the term Portfolio Executive as different from a Fractional Executive.
Why am I keen to do that?
There are two reasons:
1.Fractional Executive is the way that the client perceives you. It’s a “less than” perception. Rather than being full-time, you’re somehow fractional, somehow less than, a deficiency from the whole.
On the other hand, the Portfolio Executive is the executive’s point of view. As an executive, I have more to offer you because I have a portfolio of roles, various experiences, and no dependence on a single client. The portfolio proposition benefits the client, not a “less than” offering.
So that’s the first thing – the perception.
2. What is much more important is that I see increasingly on LinkedIn individuals who suggest you can be fractional, interim and also an independent consultant. You offer a bundle, saying, “You can buy me all these different ways.” You can buy me as a fractional executive, buy me as an interim, or buy me as an independent consultant. Fundamentally, that undermines what it means to be a Portfolio Executive. It puts you straight back into the trap that interim represents, which is typically only being engaged for two-thirds of the year and only earning a minimal premium over a permanent salaried rate for those days and constantly about having to come in and sort out a mess. It puts people back in the situation of independent consultants continually facing famine or feast, who spend more time looking for work than doing work, and who typically have short-term “find a problem, fix a problem” assignments with clients.
The Portfolio Executive’s distinctive
As a Portfolio Executive, you have all the benefits of having a long-term relationship with a client, taking responsibility for a particular function within that organisation and becoming a trusted advisor to the CEO. In a situation where you can deliver 80% of the value of a full-time person but at 20% of the cost in 10% of the time, you can have a work style that is fulfilling, rewarding, and, most importantly, sustainable. You can spend more time working for clients than finding work from clients, and over time, you can build more valuable relationships with clients that you love working with and do the job you love.
Conclusion
So, in my view, Fractional Director vs Portfolio Executive, there’s no contest – Portfolio Executive every time. Why would I buy a fraction when I can access a portfolio? Why would I want a work style that compromises all the benefits of a Portfolio Executive work style by mixing it up with independent consulting and interim work?
So next time you look at a LinkedIn profile profile that shows more than just fractional or more than just a portfolio, ask yourself: ‘is this really who you want to be?’ And, ‘is this really who you want to hire?’
Charles McLachlan is the founder of FuturePerfect and on a mission to transform the future of work and business. The Portfolio Executive programme is a new initiative to help executives build a sustainable and impactful second-half-career. Creating an alternative future takes imagination, design, organisation and many other thinking skills. Charles is happy to lend them to you.