Since we announced our three-year exit strategy, some of our leadership team members have started coasting, expecting a big payout, while others are carrying the extra weight. How do we realign the team's incentives and energy?

Question

Tyler Smith · Accepted Answer

Announcing an upcoming exit can cause significant behavioral shifts on a leadership team. Some leaders may coast, assuming their equity or stay-bonuses guarantee a comfortable payout, while others burn out trying to hit the valuation targets. This misalignment is toxic to your culture and can derail your transaction entirely. To realign your team, you must connect their daily actions directly to the company's exit goals. Ensure every leader's compensation, bonuses, or phantom stock options are tied directly to achieving key strategic Rocks and maintaining consistent performance on their weekly Scorecard. If a leader expects a payout, they must earn it by delivering clear, measurable results up to the final day. Next, revisit your V/TO during your next quarterly offsite. Realign the team around the strategic milestones required to prepare the business for a clean exit. Make sure everyone understands that a successful acquisition requires a business with automated, repeatable operations and a high-functioning leadership team, not a chaotic company run by a few exhausted heroes. Address any coasting behavior directly. Have open, honest conversations with the disengaged leaders. Remind them of the Same Page pillar of our Charter, which requires everyone to work with equal intensity towards our shared vision. If a leader refuses to step up and carry their weight, they are no longer a fit for their seat on the Accountability Chart, and you must replace them before they drag down your valuation.