Fractional CIO / cost

What does a fractional CIO cost?

Almost nobody in this market publishes a number, which makes the question harder to answer than it should be. What follows is how these engagements are actually priced, what moves the figure, and what a quote usually leaves out. There are no market averages on this page, because nobody has reliable data on a market this fragmented and a benchmark that looks researched and is not is worse than none.

The models

The four ways this work is sold

Each one prices something slightly different, and each says something about the firm selling it.

Monthly retainer

A flat fee for a defined cadence, with access between sessions.

Suits
Ongoing leadership, where the value is in the standing work rather than in any one meeting.
Watch for
A retainer that buys only the meeting. Ask what happens between them, and ask to see what that produces.

Day rate

A rate per day, drawn down as used.

Suits
Short, bounded advisory where the total is genuinely unpredictable.
Watch for
It prices attendance rather than outcomes, and it makes a five-minute question expensive enough that nobody asks it.

Fixed-scope project

A quoted number for defined work with a start and a finish.

Suits
An assessment, a vendor selection, diligence support, a second opinion.
Watch for
Scope written loosely enough that the change orders are where the margin lives.

Equity or success fee

Reduced cash in exchange for equity, or a fee tied to an outcome.

Suits
Early-stage companies conserving cash, occasionally.
Watch for
It gives your adviser a position in the outcome they are advising you on. That is the opposite of independence, and it is worth being clear-eyed about.
The drivers

What actually moves the number

In roughly the order they move it. A firm that quotes without asking about these is quoting a template.

  1. Cadence

    Monthly, bi-weekly or weekly is the single largest factor, because it is the one that determines how much of the adviser's month you hold. Everything else adjusts around it.

  2. How much of the agenda you are handing over

    Advice on decisions you bring is one mandate. Owning the roadmap, the budget, the vendors and the risk register is a different one, and it is priced differently because it is a different job.

  3. The size and state of the estate

    Not headcount alone. A 60-person company with three acquisitions, four directories and no documentation is more work than a tidy 300-person one, and pretending otherwise is how a mandate gets underquoted and then under-served.

  4. What is already in flight

    An active migration, an implementation or a live security programme all need driving. A quiet year needs steering. These are not the same fee.

  5. Whether anybody internal can act

    Advice needs somebody to receive it. Where there is no internal owner, more of the execution lands on the adviser, and the engagement grows to fit.

The alternatives

What the other options actually cost

Including the two that look free and are not. No invented figures: the only number here describing somebody else's market is a full-time salary band.

Instead of a retainerShapeWhat it costsThe catch
A full-time CIOAn executive hire, on payroll$250,000 and up, before equity, benefits and recruitmentThe right answer eventually, and hard to get right before you know what you need the role to do.
The vCIO your MSP includesBundled into the managed service feeNo separate line on the invoiceIt is not free; it is priced into the service you already buy. And it cannot objectively review the firm that employs it, which is most of what the role is for.
An IT directorA senior operator, on payrollA senior salary plus employment costsStrong on delivery, and rarely has run technology at the size you are heading toward. Different job, often mistaken for this one.
NobodyDecisions get made by whoever raises themNothing visible, which is the problemThe cost shows up as renewals that rolled over, tools nobody uses, a project that overran, or an incident that had been survivable for years. Real money, never on one line.
Our position

Why we publish one number and quote the other

Published, because it is fixed

The assessment is $12,500

Fixed scope, fixed duration, fixed deliverables. A figure is an answer rather than a guess, so it is on the pricing page where you can decide whether it is worth it without sitting through a sales process first.

Quoted, because it is not

Retainers are scoped after a call

What a mandate is worth depends on the cadence, the size and condition of the estate, and how much of the agenda we are being asked to own. A published tier price invites a company to choose before anybody has established which one it needs, and the company that picks wrong is the one who ends up disappointed.

The exclusions

What a quoted fee usually leaves out

Not always dishonestly. But these are the lines that turn a comparable quote into an incomparable invoice, and they are worth asking about before signing rather than after.

  • Project work billed separately from an 'all-inclusive' advisory fee
  • Vendor negotiations, sometimes priced as a percentage of what they save you
  • Incident support, which is exactly when you cannot negotiate
  • Travel and on-site days, where the retainer assumed remote
  • Anything produced for you that you do not own outright at the end
Before you sign

What to ask any firm, including us

A vague answer to any of these is itself an answer, and it is cheaper to hear it now.

What exactly is included, and what will be billed separately?

Do you sell, resell or receive referral fees from anything you might recommend?

What do we own at the end, and can we still use it if we never work with you again?

Who specifically does the work, as opposed to who is in this meeting?

What is the notice period, and what happens to our documentation if we leave?

Related

The rest of the question