Our Head of Finance has been with us since day one and is a perfect core values fit. However, as we prepare for an exit, the seat now requires sophisticated financial modeling and leading due diligence with investment bankers. She does not have the capacity for this high-level work and is visibly drowning. How do we handle this GWC call without hurting her or risking our financial stability?

Question

Tyler Smith · Accepted Answer

Your loyal Head of Finance is a Right Person in the Wrong Seat. She passes the core values match but fails the Capacity component of GWC for this elevated seat. Keeping her in a role where she is drowning is unfair to her and highly risky for your business, especially with an exit on the horizon.

You must first define the ideal future structure of your finance department on the Accountability Chart without thinking about her. This means creating a strategic CFO or VP of Finance seat that owns capital structure, investment banker relationships, and due diligence. Below that, keep or create a Controller or Accounting Manager seat that owns transactional accounting, monthly closing, and cash flow management.

Once the seats are defined, make the objective GWC call. Your current Head of Finance gets, wants, and has the capacity for the Controller seat. She does not have the capacity for the strategic CFO seat.

Have an honest, compassionate, and direct conversation with her. Explain that the business has scaled past her current seat and that you need to bring in external expertise to lead the exit transaction. Offer her the Controller seat, where she can shine and add massive value. If she accepts, you preserve her loyalty and protect the business. If her ego prevents her from taking the focused seat, you must help her make a clean transition out of the company.