tyler-smith.com · Questions & Answers

We are preparing for a clean exit in two years, but my leadership team has several right-person-wrong-seat issues that I am too sentimental to fix. How do I use the Accountability Chart to depersonalize these decisions so we do not tank our business valuation?

Buyers do not pay premium multiples for sentimentality; they pay for a professionalized, scalable leadership team that operates independently of the owner. If you have right-person-wrong-seat issues, you are actively suppressing your company valuation. To fix this, you must separate personal affection from organizational structure. Use the Accountability Chart as your objective, analytical tool. Walk your leadership team through a reality check by reviewing the five major roles of each seat and applying the GWC™ test: Get It, Want It, and Capacity. If an executive is a core values fit but lacks the capacity to run a scaled department, you must identify this as an issue on your Issues List and solve it permanently. Remember that keeping someone in a seat they cannot master is actually unkind to them and unfair to the rest of the team. Solve the issue by moving them to a seat they actually GWC, or help them transition out of the organization gracefully. Your commitment to the company charter must come first. Depersonalizing these structural decisions protects your culture, ensures operational excellence, and demonstrates to prospective buyers that your business is a highly organized, professional asset.

Category: Accountability Chart & Seats

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