Why the Rise of Fractional General Counsel Is Reshaping In-House Legal Strategy

What if the most innovative legal strategy today isn’t a platform or AI tool—but a person? Specifically, a fractional General Counsel.

For years, legal roles followed a predictable script: outside counsel billed by the hour, and in-house lawyers embedded themselves within one company for years. But the legal landscape is shifting fast, and in today’s dynamic, cost-conscious environment, fractional general counsel (FGC) are stepping in with a new model—one built on flexibility, strategy, and trust.

That’s the insight Steven J. Shanker brings. As a seasoned fractional GC and legal advisor, Steven has seen firsthand how the role bridges the traditional divide between external counsel and embedded in-house leadership. In a recent episode of Notes to My (Legal) Self, he shares how this evolving model is reshaping what it means to deliver legal value.

Watch the full conversation with Steven J. Shanker here:

The Appeal of Fractional General Counsel: Flexibility Without Compromise

At the heart of the fractional model is adaptability. For startups, scaling companies, or even mature businesses navigating industry-specific challenges, hiring a full-time general counsel can feel out of reach—or out of sync with current needs.

Fractional general counsel step into that gap. They bring deep experience, strategic insight, and the right level of engagement to meet a company where it is. Legal leadership becomes scalable. And what begins as a short-term engagement often becomes a long-term, trusted partnership.

Steven explains that many FGC relationships start during moments of uncertainty—a business knows it needs legal help, but isn’t sure what kind or how much. Instead of waiting for clarity, companies now turn to flexible legal support that evolves with them. From early contract reviews to growth-stage governance, fractional GCs grow with the business.

How Fractional General Counsel Shifts Legal from Reactive to Proactive

One of the biggest mindset shifts fractional counsel bring is proactive lawyering. Instead of waiting for problems to escalate, businesses can engage legal support early—designing for risk rather than reacting to it.

And because the FGC model often relies on retainers or flat-fee pricing, outreach happens more freely. As Steven notes, this leads to more frequent, strategic conversations—where legal doesn’t delay business, it accelerates it.

In highly regulated industries like tech and transportation, having an experienced FGC embedded in the business helps leaders stay ahead of legal issues, not behind them.

Why the Billable Hour Is Losing Ground to Fractional Models

Trust is hard to build when pricing feels unpredictable. That’s long been a challenge with traditional legal services. The billable hour creates hesitation—especially for fast-growing, budget-conscious companies.

Fractional GCs flip that script. With transparent pricing and clearly scoped engagements, legal becomes more approachable. Business leaders don’t hesitate to ask questions or invite legal into early-stage conversations.

And when legal is involved early, it’s not just about fixing issues. It’s about preventing them—saving time, money, and trust.

Lessons for In-House Legal Teams

Even if you’re inside a large organization with a traditional legal structure, the rise of fractional general counsel holds valuable insights.

It invites internal teams to reexamine how they’re seen by the business. Are they reactive or strategic? Are they easy to approach, or an intimidating last resort?

It also encourages new ways of structuring legal access—service menus, open office hours, fixed-fee projects. Fractional general counsel bring these ideas to life, not just for lean startups. They’re tools that build trust, reduce bottlenecks, and bring legal closer to the business it serves.

And most importantly, it reminds us that legal innovation doesn’t always require new tools. Sometimes it just takes a new approach to relationships, pricing, and delivery.

The Blurred Line Is the Opportunity

The boundary between in-house and outside counsel is becoming more fluid—but that’s not a threat. It’s a chance to redefine what effective legal support looks like.

Fractional general counsel aren’t replacing legal departments. They’re extending their reach. They’re showing what it looks like to be flexible, strategic, and deeply aligned with business goals.

For legal professionals ready to adapt, this isn’t just a trend. The role of fractional general counsel provides a path forward—and one worth watching closely.

So, the Big Takeaway?

The rise of fractional general counsel isn’t just about budget—it’s about alignment. As businesses evolve, legal strategy has to evolve too. And the future belongs to those willing to rethink not just how they work, but who they are to the business.

Watch the full conversation here:  Notes to My (Legal) Self: Season 4, Episode 3 (ft. Steven J. Shanker)

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