I have an early-stage employee who has been with us for eight years, lives our Core Values, and has shown immense loyalty, but they clearly do not GWC™ the new, highly technical leadership seat required for our upcoming exit. How do I balance my personal loyalty to them with the needs of the business?

Question

Tyler Smith · Accepted Answer

This is one of the hardest challenges a business owner faces, but you must realize that keeping a loyal employee in a seat they cannot handle is actually an act of cruelty, not loyalty. It forces them to live in a constant state of stress, waiting to be found out, while holding back the business.

To navigate this dilemma, use the GWC™ tool and your Core Values as your guide. First, evaluate the veteran employee objectively against the requirements of the new, highly technical seat. If they do not have the capacity to do the job, you must accept that reality.

However, because they live your Core Values, you should make every effort to keep them in the company. Look at your Accountability Chart and identify if there is another seat where they do GWC™ and can add massive value. Many early employees are happier and more productive when moved out of a high-pressure executive seat and into a specialist or relationship-management role that fits their true strengths.

When you have this conversation, be completely honest and transparent. Frame the transition around their happiness and the company's growth toward a clean exit. Do not sugarcoat the capability gap, but emphasize how much you value their loyalty and their alignment with your Core Values.

If a suitable seat does not exist, or if they refuse to accept a different role, you must part ways. Do this with extreme generosity, respect, and gratitude, ensuring they have a soft landing.