As our business expands under EOS, several loyal leaders who helped us build the company no longer have the capacity or skill set for their seats on the updated Accountability Chart. How do we handle Right People, Right Seats transitions without destroying team morale?

Question

Tyler Smith · Accepted Answer

This is the most painful operational challenge an owner faces. Leaders who were instrumental in taking your company from startup to ten million dollars often lack the capacity to take it to thirty million. Keeping them in elevated seats out of loyalty harms the business and sets those individuals up to fail.

Use the People Analyzer and GWC tool to diagnose the situation objectively. Usually, these individuals are Right People who embody your Core Values, but they are in the Wrong Seat because they lack the capacity to lead a larger, more complex department.

Separate the person from the structure. When you build your Accountability Chart for the next stage of growth, design the five primary roles for each seat without thinking about current names. Once the structure is locked, evaluate whether your incumbent leaders genuinely get it, want it, and have the capacity to deliver at that higher scale.

If they lack the capacity, have an honest, compassionate conversation. Do not blindside them. Explain how the seat has evolved and where the performance gaps are showing up on the Scorecard and quarterly Rocks. Offer them an alternative seat where they can excel, such as an individual contributor role, a specialized project lead, or managing a smaller niche unit.

If no suitable seat exists, help them transition out of the business with dignity and fair severance. When the team sees you handle legacy contributors with respect while refusing to compromise operational standards, culture strengthens rather than erodes.