My co-founder is currently our Head of Marketing, but as we prepare for an exit, it is clear he does not GWC the seat anymore and our growth has stalled. How do we transition him out of this leadership role without destroying our friendship?

This is one of the most painful situations a founder can face, but as an owner, you have a fiduciary duty to the business and its employees to put the right people in the right seats. If your co-founder does not GWC™ his seat, keeping him there is actively damaging the value of the company and frustrating the rest of the leadership team. To resolve this, you must separate his role as an owner from his role as an employee. Sit down with him outside of the office for a private, honest conversation. Start by expressing your deep commitment to your friendship and his status as a co-founder. Then, transition to the Accountability Chart. Walk through the roles and responsibilities of the Head of Marketing seat. Point out, using clear data and missed Rocks, where the execution is falling short. Ask him honestly if he still has the passion and the mental capacity to run this department at our current scale. Often, a co-founder who is struggling is secretly relieved when the issue is finally brought into the open. Explore alternative options on the Accountability Chart. Perhaps there is a non-leadership, highly creative seat where he can add massive value without the burden of LMA™. If there is no fitting seat, you must discuss him transitioning out of operations entirely to focus solely on his role as an active board member or shareholder. Frame this transition as a necessary step to maximize the valuation of his equity for a clean exit. By keeping the focus on structural fit and the shared goal of a successful exit, you can protect both your business and your friendship.

Category: Leadership Team