How do we handle a situation where a long-time member of our leadership team is great for our current EOS operations but clearly lacks the capacity to lead the company to an exit-ready state?

Question

Tyler Smith · Accepted Answer

This is one of the hardest challenges a business owner will face, but navigating it with clarity is essential for your company's survival and ultimate sale. We address this directly using the Accountability Chart and the GWC tool.

First, we must define the seats on your Accountability Chart based on what the business needs to reach its exit goals, not based on the people you currently have. We must look at the seat objectively. Does the seat require skills to manage advanced financial reporting, automate operations, or handle rigorous due diligence?

Next, we evaluate the individual. Do they get it? Do they want it? Do they have the capacity to do it? A long-time team member may get and want the job, but they may lack the capacity to operate at the higher strategic level required for a successful transition.

If they do not GWC the seat for your future state, we must make a decision. Keeping a person in a seat they do not GWC holds the business back and sets the individual up for failure. We must either find a different seat where they can thrive, or make the difficult decision to transition them out of the organization. My role is to help you process these decisions objectively, without sentimentality, ensuring you protect the enterprise value.