Podcast Summary: Second in Command: The Chief Behind the Chief
Episode: Ep. 453 - Scaling Management Consulting Group Founder & CEO, Susan Goble
Release Date: February 27, 2025

Introduction

In Episode 453 of the Second in Command podcast, host Cameron Herold engages in an insightful conversation with Susan Goble, the Founder and CEO of Scaling Management Consulting Group. Representing a vital segment of the COO Alliance, Susan delves into the intricacies of running a fractional COO business, addressing common challenges faced by growing companies and the strategic solutions her firm offers.

Understanding Fractional COOs

Cameron Herold initiates the discussion by exploring the concept of a fractional COO. He references his own experience, noting that he started his business as a fractional COO 17 years ago, initially branding it as the "Back Pocket COO" to signify availability and support when needed.

Susan Goble elaborates on this model, stating:

"We are there as fractional CEOs your second in command. [...] Our bench of fractional COOs are individuals who have at least a couple decades worth of experience [...] We are not your forever people. We are the people to get you from point A to point B successfully so that you can continue to grow and scale."
(03:34)

A fractional COO provides strategic assistance, oversees people management, and handles day-to-day operations, ensuring operational efficiency and profitability without committing to a long-term role.

Scenarios for Engaging a Fractional COO

Herold outlines two primary scenarios where a fractional COO can be beneficial:

1. Problem to Solution: Addressing specific operational issues.
2. Team Development: Enhancing a junior or mid-level team without the cost of a full-time CEO.

Susan Goble confirms these scenarios:

"That would absolutely be scenario one and two. [...] We're also not your forever people. We are the people to get you from point A to point B successfully."
(04:15)

Identifying and Solving Root Problems

A significant portion of the conversation focuses on diagnosing underlying issues within a growing business. Susan emphasizes the importance of root cause analysis over merely addressing surface-level symptoms.

"You can't just go in and solve for the one thing that's a symptom. [...] we have to solve that root."
(04:53)

Herold shares a relatable analogy:

"It's like my kid has a cold, but actually you have black mold in your house."
(05:09)

This underscores the necessity for a comprehensive evaluation to prevent recurring problems.

Prioritizing Challenges and Opportunities

When multiple issues arise, prioritization becomes crucial. Susan discusses a methodical approach to tackling problems:

"There is a matrix of criteria that you're looking at. [...] sometimes that's not the thing that the CEO has as their sweet spot."
(07:34)

Herold adds that experience allows fractional COOs to swiftly identify critical areas needing attention, preventing overload and ensuring strategic focus.

Financial Management as a Priority

Highlighting the importance of financial health, Susan identifies money-related challenges as top priorities for businesses:

"Money. [...] Without the money, you're not going to be there."
(07:57)

She emphasizes that improving profitability and optimizing business models are foundational steps for sustainable growth.

Addressing Title Inflation and Leadership Dynamics

The conversation shifts to the topic of title inflation and its impact on organizational structure. Susan notes:

"We usually don't worry about the fact that they've got a specific title. [...] We're there to support."
(10:18)

She advocates for focusing on roles and responsibilities over titles, ensuring that leadership positions effectively contribute to the company's objectives.

Common Mistakes in Hiring Fractional COOs

Susan outlines typical pitfalls companies encounter when seeking a fractional COO:

1. Overemphasis on Industry Experience: While important, it's not the sole criterion for success.
2. Seeking a 'Unicorn': Expecting a candidate to meet an exhaustive list of requirements is unrealistic.

"You can use different models that people who have just been brought up in one vertical, they won't see and they won't see the application of [...] it's really good to have that different perspective."
(14:42)

Demonstrating ROI of Fractional COOs

Quantifying the return on investment (ROI) is crucial for businesses considering a fractional COO. Susan articulates the immediate financial benefits:

"We find on average, there's one or two people who are the wrong hires. So there's your money right off the bat."
(17:40)

By rectifying hiring mistakes and optimizing financial operations, companies can realize substantial cost savings and enhanced profitability.

Determining the Right Time to Engage a Fractional COO

Identifying when to bring in a fractional COO involves recognizing specific pain points within the organization. Susan identifies key indicators:

"The owner is at the point where they are spending more and more time in the business. They're starting to get disengaged. [...] I've got more leads coming in, but why am I still working 60 hours?"
(19:41)

These symptoms suggest systemic issues that a fractional COO can address to restore operational balance and drive growth.

Final Thoughts and Recommendations

Concluding the episode, Susan encourages business leaders to approach the decision with openness:

"Just reach out and ask the questions. Don't think you're too small. [...] sometimes the challenge that you think you have isn't actually the challenge you have."
(22:14)

Herald reiterates the value of Fractional COOs in providing strategic insight and operational expertise, facilitating sustainable business growth.

Notable Quotes

• Susan Goble at [04:53]: "You can't just go in and solve for the one thing that's a symptom."
• Cameron Herold at [05:09]: "It's like my kid has a cold, but actually you have black mold in your house."
• Susan Goble at [07:57]: "Money. [...] Without the money, you're not going to be there."
• Susan Goble at [10:18]: "We usually don't worry about the fact that they've got a specific title."
• Susan Goble at [17:40]: "We find on average, there's one or two people who are the wrong hires."

Conclusion

Episode 453 of the Second in Command podcast offers a comprehensive exploration of the fractional COO model through the expertise of Susan Goble. By addressing common challenges in growing businesses and highlighting strategic solutions, the episode serves as a valuable resource for CEOs and leaders considering the integration of a fractional COO into their organizational structure.

For more insights and expert advice from leading COOs, visit COO Alliance and explore additional episodes of the Second in Command podcast.