tyler-smith.com · Questions & Answers

Even though we use EOS, I still find myself getting dragged into operational emergencies because of my unique troubleshooting skills. How do we eliminate this specific key-person risk before we start our exit runway?

If you are still the chief firefighter in your business, you have a massive key-person risk that will severely damage your valuation. Buyers will look at your operations and realize that if you walk away post-close, the business will struggle to survive.

To break this cycle, you must restructure how your leadership team handles issues. Start with your Accountability Chart. Ensure that every seat has clearly defined roles and that your team members GWC™ their seats. If an operational emergency occurs, it must be routed to the person who owns that seat, not to you.

Next, practice the discipline of the strategic pause. When a team member comes to you with an emergency, resist your natural conative drive to solve it immediately. Instead, take a moment to step back and redirect them to their own team. Force them to bring the issue to their next Level 10 Meeting™ and solve it using the IDS® process.

By refusing to step in, you create the white space your team needs to build their own decision-making muscle. This process may feel uncomfortable at first, and some minor mistakes will occur. However, the flow cost of allowing small operational errors today is far lower than the lump-sum cost of a discounted valuation because of founder dependency. Your job is to guide them, not to rescue them.

Category: Exit Planning

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