Our leadership team is fully aligned on the exit, but our middle managers are used to having us step in to solve tough operational issues. How do we use our weekly Level 10 Meetings and departmental scorecards during our runway to build their independence so the buyer does not demand a long, agonizing transition period?

Question

Tyler Smith · Accepted Answer

A sophisticated buyer will look right past your executive leadership team to evaluate your middle managers. If your front-line managers are dependent on you to make daily decisions, the buyer will demand a long, painful transition period to protect their investment. To prevent this, you must spend your exit runway building your middle management's operational independence. Start by rolling down the EOS tools to your departmental teams. Ensure every department has its own weekly Level 10 Meeting and its own clear Scorecard. This instills a culture of accountability and teaches your middle managers how to identify, discuss, and solve issues without running to the executive team. Your role must shift from problem solver to coach. When a manager comes to you with a problem, do not give them the answer. Instead, ask them what solutions they have brainstormed and how they plan to execute. This disciplined approach builds their confidence and operational capacity. By the time you go to market, your middle managers should be running their departments with complete autonomy. Proving to a buyer that your operational engine runs smoothly at every level of the organization will significantly reduce your post-closing liabilities and earnout periods.