tyler-smith.com · Questions & Answers

We want to lean out our operation to improve our margins before we go to market next year. Can we temporarily combine our Head of HR and Head of Compliance seats into one single seat, and what are the rules on our Accountability Chart for having one person run multiple major departments?

Yes, you can absolutely have one person sit in multiple seats on your Accountability Chart, especially when you are leaning out the organization to boost profitability before an exit. In EOS, the rule is that you can have one person in multiple seats, but you can never have multiple people in one seat. However, you must maintain structural integrity. Do not combine the Head of HR and Head of Compliance into a single, messy seat. They are distinct operational functions. Keep them as separate seats on your Accountability Chart, each with its own five clear roles. Then, simply put the same person's name in both boxes. By keeping the seats separate, you achieve two things. First, you keep clear accountability for both compliance and human resources. Second, you make the business easy to scale or sell. When a buyer looks at your organization, they will see a clean, professional structure. They will know exactly which seat needs to be hired out first to relieve your leader. When one person sits in multiple seats, you must monitor their capacity closely during your weekly Level 10 Meetings. If they begin to drop the ball, you must use the IDS process to decide which seat to delegate or hire out. This keeps your operations lean without sacrificing clarity.

Category: Accountability Chart & Seats

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