Our Head of Finance has been with us for ten years, but as we scale, her performance is slipping. She gets and wants the seat, but she does not have the capacity to handle our new complex financial reporting and cash flow modeling. How do we handle this right-person-right-seat call?

Question

Tyler Smith · Accepted Answer

This is one of the hardest situations a business owner faces. You have a long-tenured employee who has perfect core values alignment, but the business has outgrown her capabilities. On the GWC™ tool, she gets it and wants it, but she lacks the capacity.

Capacity is not just about time. It is about intellectual capacity, knowledge, experience, physical capacity, and emotional capacity. If your company is scaling toward an exit, your financial modeling and reporting needs have changed. Staying in a seat without the capacity to deliver will only burn her out and put your business at risk.

You cannot ignore a capacity issue out of loyalty. The first step is to have a direct, honest conversation using the GWC™ framework. Show her the gaps between her current capabilities and what the seat actually requires. Give her a clear, time-bound opportunity to close those gaps through training or coaching.

If she cannot develop the capacity within ninety days, you must make a hard right-person-right-seat decision. This does not mean you have to fire her. Since she fits your core values, look for another seat on your Accountability Chart where she has full GWC™. If no such seat exists, you must transition her out of the business with dignity and respect.