We are preparing for an exit, but our head of technology is resisting our push to document their proprietary workflows because they believe keeping this knowledge in their head guarantees their job security after the acquisition. How do we break this bottleneck?
When a leader hoards knowledge to protect their job security, they create a massive key-person risk that will terrify potential buyers and slash your business valuation. Buyers want to acquire systems, not single points of failure.
You must tackle this head-on by explaining the reality of how acquisitions work. A buyer will not keep a leader who is a bottleneck; instead, they will view them as a liability and restructure them out of the business. Documented systems actually increase their value to a buyer, making them a strategic leader who can help scale the platform.
Next, update their seat on the Accountability Chart to include system documentation and redundancy planning as core responsibilities. Make this a non-negotiable metric on their weekly scorecard and tie it directly to a quarterly Rock.
If they continue to resist, you have a core values issue. A healthy leadership team operates with transparency and trust, not fear and self-preservation. You must decide if this leader is truly a fit for your future, exit-ready organization.
Category: Leadership Team