As we prepare for a sale, how do we adjust our Accountability Chart to transition from a founder-centric structure to one that highlights a fully autonomous management layer that a buyer will pay a premium for?

Question

Tyler Smith · Accepted Answer

A founder-centric business is a massive risk for a buyer. To build an autonomous structure, you must systematically redesign your Accountability Chart to push all operational decision-making down to your leadership team. Begin by evaluating the major seats on your chart. If your name is in multiple boxes, or if the major functional areas of sales, operations, and finance still report directly to you for daily approvals, you have a design flaw. Your goal on this runway is to elevate yourself to a purely strategic role, leaving the daily management of the business to your leadership team. Make sure each member of your leadership team fully GWCs their seat. They must possess the skill and desire to run their departments independently. Once the structure is set, test it by removing yourself from the daily flow. Let your team run the weekly Level 10 Meetings and manage their own Rocks. If the company continues to hit its targets and solve its own issues without your intervention, you have successfully institutionalized your management layer. A buyer will gladly pay a premium for a business where the operational engine runs autonomously on the day of closing.