We have been running on EOS for six months and it has become clear that two of our legacy leadership team members do not have the capacity to perform in their newly defined seats. How do we handle this people issue without destroying morale?

Question

Tyler Smith · Accepted Answer

Discovering that long-term, loyal employees are in the wrong seats is one of the hardest challenges a business owner faces, but ignoring it will cripple your EOS® implementation and your growth. You must address this issue directly using the People Tools.

Start by evaluating these leaders with the People Analyzer™ and GWC™ tool. If they share your core values but simply lack the capability or capacity to perform in their current seat, you have a right person, wrong seat issue. Your goal should be to find a seat in the organization where they can succeed and add value.

Have a candid, compassionate conversation. Show them the Accountability Chart and explain that the seat has outgrown their current capacity. Frame the conversation around their success and the company's future. Most legacy employees already feel the stress of being overwhelmed and are often relieved to transition into a role that fits their strengths.

However, if they do not fit your core values, they are the wrong person, and they must be transitioned out of the company. Keeping a wrong person on the leadership team destroys morale and shows the rest of the organization that your core values are just words on a wall. Handle the transition with respect, offer fair severance, and protect the health of the business.