Our Head of Sales is a great core values match, but as we prepare for a major exit, we need a seasoned leader who has scaled sales from ten million to fifty million. Our current manager does not have the capacity or experience to lead this growth, but we want to keep him in a junior sales seat. He feels insulted by the demotion and is threatening to leave. How do we handle this delicate transition?

Question

Tyler Smith · Accepted Answer

This is one of the hardest Right Person, Wrong Seat decisions an owner has to make. Your Head of Sales has been loyal and matches your core values, but the seat has outgrown him.

Direct and Honest Communication

You must be direct and honest in this situation. Keeping him in a seat where he will eventually fail is neither kind nor good for the business. Frame the conversation around the company's growth and the evolution of the Accountability Chart. Explain that the seat is changing, not your respect for him. This kind of organizational shift is common as companies mature, especially when preparing for [a major exit](/qa/business-exit-readiness-vs-founder-burnout).

Outlining the New Role Requirements

To facilitate this difficult conversation, follow these steps:

• Show him the future Accountability Chart: Clearly illustrate the organizational structure you envision for the next growth phase.
• Explain the gap: Detail the difference between his current capabilities and what the new Head of Sales seat requires to achieve a successful exit.
• Emphasize GWC™: If he truly matches your core values, you want to keep him on the team. However, he must fit into a seat where he can genuinely Gets it, Wants it, and has the Capacity (GWC™) for the roles. This ensures everyone is in a position to succeed. For similar situations with other key leaders, consider how to approach [GWC issues with other loyal team members](/qa/gwc-vp-finance-exit-capacity-issue) in critical roles.

Transitioning to a Junior Sales Seat

If you offer him a junior sales seat, be very clear about the new terms:

• Outline clear roles and responsibilities: Define precisely what his new day-to-day work will entail.
• Non-negotiable reporting: He must understand that reporting to a new, external leader is not open for discussion.
• Check ego at the door: Emphasize the importance of supporting the new sales leader and adapting to the changed dynamics. This is crucial for maintaining team cohesion and preventing [leadership team issues](/qa/resolving-leadership-turf-wars-accountability-chart) that can derail growth.

The Difficult Decision

If he cannot accept the change in reporting lines or status, you must let him go. Holding back the growth of your company to appease one person's ego is a disservice to the rest of your employees and jeopardizes the potential of your [business sale](/qa/why-buyers-pay-more-for-eos-run-businesses). If he decides to leave, help him exit with dignity and transition his accounts cleanly. Never compromise the integrity of your Accountability Chart just to avoid a difficult conversation.

Related questions

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• [I am the owner currently sitting in four seats on our Accountability Chart, and since I cannot afford external hires, I want to promote from within. However, none of my current employees fully pass the GWC filter for these leadership seats today. How do I structure a developmental runway on our chart without prematurely giving them seats they are not ready to own?](/qa/internal-promotion-runway-accountability-chart)
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