My co-founder currently sits in the VP of Marketing seat, but they clearly do not GWC the role anymore and the department is underperforming. How do we handle this right-person-right-seat call when it involves a major shareholder?

Question

Tyler Smith · Accepted Answer

This is one of the most painful calls an owner has to make, but you must separate ownership from operations. Being a shareholder does not give someone a lifetime pass to occupy an operational seat they do not GWC.

Start by looking at the Accountability Chart, not the cap table. Ask yourself objectively: does your co-founder truly get, want, and have the capacity to lead marketing for where the business is going in the next three years?

If the honest answer is no, you have an issue that must be addressed immediately. Schedule a private discussion outside of your normal operational rhythm. Approach the conversation with the humility and confidence outlined in our charter.

Frame the issue around the health of the company and our commitment to our strategy and structure. Explain that the marketing seat has outgrown their current operational capacity or interest, and that keeping them there is holding the company back from achieving its targets.

Work together to transition them out of the operational seat. Since they are a co-founder, their genius might be better utilized in a high-level strategic advisory role, or they may transition to the Owner's Box entirely, focusing purely on their shareholder relationship with the business.

By making this hard call, you protect the enterprise value of the company and set a standard of accountability that applies to everyone, from the entry-level hires to the founders.