tyler-smith.com · Questions & Answers

Since we announced our three-year exit plan, our head of sales has clearly checked out mentally. They are hitting their baseline targets but refuse to build new systems or train their successor, essentially coasting until the payout. How do we re-engage or handle a leader who has checked out due to an impending exit?

When an exit is on the horizon, it is common for leaders to develop senioritis. They start focusing on their personal payout rather than the hard work of scaling the company. This coasting behavior is dangerous because it stalls your momentum just when you need to show strong growth to potential buyers.

To fix this, you must realign their incentives with the work required for a successful transition. If your head of sales is coasting, their exit bonus should not be guaranteed just for staying in the seat. It must be tied to specific, measurable transition milestones.

Make success planning a core requirement of their seat on the Accountability Chart. Set explicit, quarterly Rocks focused on documenting their sales processes, transitioning key client relationships to junior account managers, and training an internal successor.

Have a direct, unsentimental conversation. Tell them that a potential buyer will conduct deep due diligence on the sales department. If the sales engine is entirely dependent on them and lacks documented processes, it will drag down the company valuation, which directly impacts their payout. If they are unwilling to do the work to build a self-sustaining department, you must replace them now. It is better to have a hungry, growth-oriented leader in that seat for the twelve months leading up to the sale than a coasting executive who spooks buyers.

Category: Leadership Team

← All questions