Our Head of HR has been with us for fifteen years and is a beloved, loyal core values fit. However, as we prepare for a clean exit, we need a strategic leader who can implement sophisticated equity incentive plans and automated HR tech. She clearly does not Get, Want, or have the Capacity for this level of work. How do we make this hard GWC call without looking heartless to the rest of the company?

Question

Tyler Smith · Accepted Answer

This is one of the most painful situations an owner faces, but you must prioritize the company's well-being above personal sentiment. Keeping a loyal employee in a seat they cannot fulfill is not kind, it actually hurts both the business and the individual. If you are preparing for an exit, a buyer will quickly identify this capability gap and discount your valuation.

To handle this professionally, start by decoupling the person from the seat. On your Accountability Chart, define the future-state HR seat required to scale the business and satisfy a buyer. List the five clear roles, including strategic compensation planning and HR systems automation.

Next, run a formal GWC evaluation on the long-tenured leader for this newly defined seat. Ask yourself if she gets it, wants it, and has the capacity to do it. Based on your description, she does not have the capacity for this level of scale. Since she is a great core values fit, you have a Right Person, Wrong Seat issue.

Operate from your core values of Help First and Do The Right Thing. Have an open, honest, and vulnerable conversation with her. Explain that the company's growth has outpaced the current seat's requirements, and you need a different level of capability for the exit. See if there is another seat on the Accountability Chart, perhaps a more execution-focused HR specialist or coordinator seat, that she fully gets, wants, and has the capacity to do. If no such seat exists, help her transition out of the company with dignity, generous severance, and deep appreciation for her years of service.