Our VP of HR has been with us since we were a team of ten. She absolutely gets the job, wants the seat, and is a stellar core values fit. However, as we prepare for a private equity exit, the compliance, M&A integration, and complex equity structures are far beyond her skill set. How do we handle this GWC capacity issue with a beloved, long-tenured leader?

Question

Tyler Smith · Accepted Answer

This is one of the hardest calls a business owner has to make, but preparing for a clean exit requires absolute structural discipline. You have a Right Person, Wrong Seat situation. Your VP of HR matches your core values, but she lacks the capacity for the future needs of the seat.

On the Accountability Chart, you must structure the seat for where the company is going, not where it has been. The future HR seat requires experience with transaction compliance and post-merger integration. If she does not have these capabilities, keeping her in the seat is a disservice to both her and the company. She will eventually burn out or drop a critical ball that could derail your exit.

You must have an open, honest conversation with her. Explain that the seat has outgrown its current boundaries due to the upcoming exit preparation. Because she is a Right Person, look for another seat on the Accountability Chart where she can shine. This might mean splitting HR into two seats: a strategic VP of HR seat occupied by a new hire, and a Director of People and Culture seat occupied by her.

If you cannot find or afford a seat that fits her GWC™, you must transition her out of the company with dignity and respect. Keeping a person in a seat they cannot fulfill because of sentimentality is a failure of leadership.