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. Loyalty is a beautiful trait, but keeping someone in a seat they can no longer handle is actually unfair to them and damaging to the business. You must address this with absolute clarity and compassion.

First, use the GWC framework. Evaluate if they truly Get, Want, and have 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, complex systems, or advanced financial planning. Capacity is not a moral failing, it is just a reality.

Once you establish that they do not GWC the seat, you have two paths. You can either invest in coaching and training with a strict sixty-day timeline to see if they can build the necessary capacity, or you can transition them to a different seat on the Accountability Chart where they can succeed.

If you transition them, remember that you must design the organization for the business first, not for the people. Find a seat where their unique abilities and core values shine, perhaps as an individual contributor or managing a smaller, specialized team.

Be completely transparent. 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, provided you preserve their dignity throughout the transition.