We are three years away from an exit and our buyer profile requires a self-sustaining middle management layer. Right now, our Accountability Chart is extremely flat with eight managers reporting directly to the Integrator. How do we restructure our seats to build this management tier without causing a mutiny?

Question

Tyler Smith · Accepted Answer

To build a middle management layer without causing friction, you must design the future structure on your Accountability Chart first, completely separate from the people currently in those seats.

Start by looking at your three-year picture on your V/TO. Map out the organizational structure required to support that level of revenue and operational complexity. This structure will naturally require grouping related departments under distinct leadership seats.

Next, introduce this future Accountability Chart to your current leadership team. Explain that this change is necessary to achieve your exit goals and that having eight direct reports to the Integrator is a bottleneck that limits company growth.

Once the leadership team agrees on the structure, begin placing people in the new seats. Some of your current department heads will step up into the new director-level seats, while others will remain in their current specialized seats but report to the new directors.

Run GWC checks on everyone to ensure they fit their new reporting lines. Expect some resistance, as team members may feel they are losing direct access to the Integrator. Address this by explaining that this structured reporting layer is essential to create a scalable business that buyers will find highly valuable.