We have a co-founder who has the G and W for Head of Technology, but lacks the C because of rapid AI shifts. Do we demote them or change the seat?

Question

Tyler Smith · Accepted Answer

When a co-founder gets and wants their seat but lacks the capacity because of rapid technological changes like AI, you have a classic Right Person, Right Seat dilemma. Capacity is not just about physical time; it is about mental, emotional, and cognitive capability to perform at the highest level as the business scales.

If your Head of Technology cannot keep up with AI-powered operations, keeping them in that seat will bottleneck your company and hurt your eventual exit value. You must address this with absolute candor.

Sit down with your co-founder and review the GWC tool. Explain that while their passion and alignment with your core values are unquestioned, the technical demands of the seat have outgrown their current skill set. Do not create a fake, superficial seat just to spare their feelings.

Instead, look at your Accountability Chart and see if there is another seat where they can add massive value. For example, they might transition to a specialized research and development role, or a strategic advisory seat, while you bring in a new leader who has the capacity to run modern operations. This transition requires vulnerability and trust. Frame the conversation around what the business needs to win, not a personal failure. Protecting a co-founder at the expense of the organization ultimately damages the partnership and the company.