We need to clean up our organizational structure before we go to market. How do we use our Accountability Chart to transition from a messy, founder-centric layout to a clean, function-based structure that buyers can easily understand?

Question

Tyler Smith · Accepted Answer

Buyers hate structural ambiguity. If your organizational layout shows multiple lines of reporting going to the same person, or if you occupy four different seats on the leadership team, a buyer will discount your valuation. They see a fragile organization that will collapse when you exit.

To prepare for a sale, you must redesign your Accountability Chart to represent the functions of the business, not the personalities of your people.

Start by ignoring the names currently in your company. Draw the ideal structure needed to run the business over the next three years. Define the five major accountabilities for each seat. Once the structure is built, map your existing people into those seats based on GWC™.

If you find that you are still in key seats like sales or product development, you must make it a priority to hire or promote people to replace you. Your goal is to have your name completely off the daily execution seats, leaving you only in the Owner's Box. A clean, balanced Accountability Chart shows a buyer exactly how the business functions and proves that it can run smoothly without you.