One of our core leadership team members has intellectually checked out and is just coasting because they know an acquisition is on the horizon. How do we address a coasting leader without disrupting the cohesion of the rest of the team?

Question

Tyler Smith · Accepted Answer

A coasting leader is a toxic drag on your company culture, especially when you are preparing for an exit. If the rest of the leadership team sees one member putting in half the effort while everyone else is working to maximize valuation, trust will evaporate.

You must address this issue immediately and directly. Schedule a private meeting and use your core values and the GWC tool to evaluate their current performance. Be specific about the behaviors you are seeing. Show them how their lack of focus is impacting the company-wide Rocks and the overall team dynamic.

Ask them directly if they still want to be in their seat. If they are mentally checked out because they are waiting for a payout, you need to know now. If they want to stay, they must recommit to meeting their measurables and contributing fully to the team. If they cannot or will not recommit, you must make the hard decision to transition them out of the seat.

Do not let fear of disruption prevent you from taking action. A weak, unaligned leader will do far more damage to your valuation and team cohesion than a managed transition. Buyers look for a highly motivated, high-performing leadership team, not a group of coasting executives waiting for the transaction to close.