My co-founder sits in the Product Development seat, but our business is pivoting to an AI-driven service model and they do not have the technical capacity or interest to learn these new systems. How do we address this Right Person, Right Seat issue when the seat holder is a significant equity partner?

Question

Tyler Smith · Accepted Answer

This is where many business partners get stuck, but you must separate ownership from seat holding on your Accountability Chart. Ownership is an investment. Sitting in a seat on the leadership team is a job. Every job on the Accountability Chart must be filled by someone who GWCs it, regardless of how much equity they own.

To address this, you must build high levels of trust. Apply the principles from the Trusted Advisor Fieldbook: adopt an other-focused mindset, practice vulnerability, and focus on the long-term partnership. Do not approach this as a performance confrontation. Approach it as a strategic alignment meeting.

Schedule a dedicated meeting outside the office. Walk through the new Accountability Chart that the business needs to reach its three-year picture. Be honest about the technical demands of the new Product Development seat. Ask your partner for their candid perspective on whether this seat still aligns with what energizes them and what they want to do daily.

If they lack the interest or the capacity to learn AI systems, acknowledge that together. This is not a failure. It is an evolution. Discuss transitioning them into a different seat on the Accountability Chart where they do GWC, perhaps client relationship management, strategic partnerships, or an advisory role.

If there is no operational seat that fits, they must step out of the daily business operations while retaining their equity and board seat. By separating their role as an owner from their role as an employee, you protect the business performance while respecting their financial contribution to the company.