We need to eliminate our administrative director seat to stay lean, but this seat is currently held by a minority partner who is also a family member. How do we handle this delicate structural change on our Accountability Chart without causing a major personal rift?

Question

Tyler Smith · Accepted Answer

This is a common and delicate challenge that requires you to clearly separate ownership from operations. On your Accountability Chart, we only look at seats, roles, and accountability, completely ignoring capitalization tables, stock options, and family relationships. Sit down with the partner outside of the office to discuss this change. Explain that to achieve your long-term growth and prepare the business for a clean exit, you must build a highly efficient, lean organization. Frame the decision as a strategic necessity for the business's valuation, which ultimately benefits them as an owner. Use Keith Cunningham's Thinking Time to ask: How might we structure our partner's involvement so that they can transition to a strategic board-level advisory role without holding an operational seat we need to eliminate? This allows them to maintain their status and input as an owner while removing them from the daily Accountability Chart. If they do not GWC™ another active seat, keeping them in an unnecessary role creates bloat and destroys team morale. Be firm, direct, and focused on the health of the company.