We have a co-founder who helped us build the business but no longer possesses the capabilities or desire to fill any seat on our new Accountability Chart. How do we handle this GWC issue without destroying the company or our relationship?

Question

Tyler Smith · Accepted Answer

This is one of the hardest human challenges an owner will face, but avoiding it will eventually kill your business. When a co-founder is no longer GWC™ for a seat on the Accountability Chart, you must separate ownership from employment. A person can be a great owner and shareholder without holding an active operational seat.

To handle this, start with an honest, data-driven conversation. Use the Accountability Chart and the GWC™ tool to show them the requirements of the seat they are currently occupying. Be objective, calm, and clear. Show them where the gap lies between what the seat requires and what they want, get, or have the capacity to do.

Often, the co-founder is secretly relieved when this issue is brought into the light because they have been struggling in a seat that does not fit them. Work together to design a transition plan. This might involve transitioning them into a board-level advisory role, a non-operational shareholder seat, or helping them exit the business cleanly.

By addressing this head-on with respect and clarity, you preserve the health of the company and protect the equity you have both worked hard to build.