Our long-time Chief Operating Officer is a core values match and has been with us for a decade, but as we scale and automate, he simply does not have the capacity to handle the sophisticated operations required for our exit. How do we handle this right-person, wrong-seat situation at the executive level?

Question

Tyler Smith · Accepted Answer

This is one of the most painful decisions a business owner will face, but keeping a right person in the wrong seat will cap your growth and severely damage your exit valuation. If your COO does not GWC™ the upgraded seat required for your next stage of growth, you must take action immediately.

First, run a formal check using the People Analyzer™. If he is a true core values match but lacks the capacity to run modern, automated operations, he is a classic right-person, wrong-seat issue.

Next, look at your Accountability Chart to see if there is another seat where his skills and experience match the roles perfectly. This could be a specialized technical advisor seat, a strategic relationship seat, or a project management seat.

If such a seat exists and he GWC™s it, you can transition him into it with grace. However, if no such seat exists, or if he refuses to step down from the leadership team, you must transition him out of the company. Keeping him in a seat he cannot master is unfair to him and holds the entire business back.