Our long-time VP of Operations is a fantastic core-values match, but as we continue to grow, it is clear they have hit their ceiling and can no longer manage the complexity of their seat. How do we handle this without destroying our relationship?

Question

Tyler Smith · Accepted Answer

This is one of the hardest challenges a business owner faces. While loyalty is a beautiful trait, keeping someone in a seat they can no longer handle is unfair to them and damaging to the business. You must address this situation with absolute clarity and compassion.

Assessing Capacity with the GWC Framework

The first step is to use the GWC framework (Get It, Want It, Capacity To Do It). Evaluate if your VP of Operations truly:

• Gets the role.
• Wants the role.
• Has the Capacity to do the job at your current and future scale.

Often, a legacy leader gets the role and wants the role, but they simply lack the capacity to manage a larger team, more complex systems, or advanced financial planning. Capacity is not a moral failing, it is just a reality that emerges as the business grows.

Two Paths Forward

Once you establish that they do not GWC the seat at the required level, you generally have two paths:

1. Invest in Coaching and Training:
• Provide targeted coaching and training.
• Set a strict sixty-day timeline to see if they can build the necessary capacity.
• This approach requires clear expectations and measurable progress.
2. Transition to a Different Seat:
• Transition them to a different seat on the Accountability Chart where they can succeed.
• Remember, you must design the organization for the business first, not for the people. This is critical for scaling successfully, as detailed in discussions around [restructuring without layoff panic](/qa/restructuring-without-layoff-panic).
• Find a seat where their unique abilities and core values truly shine. This might be as a highly valued individual contributor or managing a smaller, specialized team. For example, you might consider [restructuring a seat for a legacy leader hitting their ceiling](/qa/restructuring-seat-for-legacy-leader-hitting-ceiling) to retain their expertise.

The Importance of Transparency and Dignity

Be completely transparent throughout the process. Explain that the business has grown and the requirements of the seat have changed.

• Most loyal employees are secretly relieved when you relieve them of a burden they are drowning under.
• It is crucial to preserve their dignity throughout the transition. Frame it as a natural evolution of the company and their role within it, not as a personal failure.
• Openly discussing the evolving needs of the business can help leaders understand why their current role may no longer be a fit, similar to how one might approach a [GWC capacity issue with a VP of Finance](/qa/gwc-vp-finance-exit-capacity-issue) when preparing for an exit.
• This approach helps to maintain your relationship and ensure they remain a valuable part of the team in a more suitable position.

Related questions

• [How do we design a specialist seat on our Accountability Chart for a legacy leader who has hit their management ceiling, so we retain their expertise without stalling our growth?](/qa/restructuring-seat-for-legacy-leader-hitting-ceiling)
• [My COO is an incredibly loyal execution machine who has been with me for ten years, but they lack the strategic capability to build the next layer of management. How do I resolve this without firing them?](/qa/loyalty-versus-capability-leadership-team)
• [Our long-tenured VP of Finance is a perfect core values fit and gets and wants their seat, but they lack the capacity to build the complex forward-looking financial forecasting models that prospective buyers are demanding for our exit. How do we handle this GWC issue without firing a loyal leader?](/qa/gwc-vp-finance-exit-capacity-issue)
• [We need to restructure our operations and sales seats to prepare for an exit, but we are terrified that moving boxes on the Accountability Chart will make our loyal employees think a mass layoff is coming. How do we roll out a major structural redesign without triggering widespread panic?](/qa/restructuring-without-layoff-panic)