Our bookkeeper has been with us for fifteen years and transitioned to the Finance Director seat as we grew. She is a loyal, core-values match, but as we prepare for an exit, we need a strategic CFO who can handle complex quality of earnings audits and tax structuring. She does not GWC this new reality. How do we make this Right Seat call?

Question

Tyler Smith · Accepted Answer

This is a classic Right Person, Wrong Seat dilemma that many business owners face as they prepare for a clean exit. Your long-term employee has the right core values, but the capacity required for the Finance Director seat has outgrown her capabilities. A buyer will discount your valuation if your financial seat cannot withstand a rigorous due diligence process.

You must separate the person from the seat on your Accountability Chart. Design the ideal future Finance seat first, without thinking about her. Define the roles clearly, such as managing cash flow, financial forecasting, tax strategy, and executing due diligence audits.

Next, run the GWC™ evaluation. She likely gets the basic bookkeeping, but she does not have the capacity for strategic transaction accounting or deal structuring. Once you identify this gap, have a direct and compassionate conversation with her. Explain that the business has scaled to a point where the financial seat requires a different set of specialized skills.

Because she is a Right Person, look for a different seat on the Accountability Chart where she can excel, perhaps as a controller or office manager, reporting to the new CFO. If no such seat exists or she refuses to step down, you must help her make a smooth transition out of the company. Protecting the seat is the only way to protect the value of your business.