One of our long-term directors has been with us since inception and has the Right People, Right Seat alignment, but as we scale toward twenty million, their operational capacity is tapping out. How do we address this without destroying their morale?

Question

Tyler Smith · Accepted Answer

When a long-term leader who matches your core values is no longer capable of running their growing seat, you are facing one of the hardest challenges of business ownership. They are the Right Person, but they are no longer in the Right Seat. As your business grows, the complexity of each seat increases, and sometimes the seat simply outgrows the person. You must address this issue directly and honestly using the GWC™ framework. Sit down with the leader and review the five major roles of their seat on the Accountability Chart. Have an open conversation about where they are struggling. Often, the leader is already feeling overwhelmed, stressed, and burned out, and they will feel a sense of relief when you acknowledge the reality. Do not simply demote or terminate them without a plan. If they are a Right Person, you want to keep them in the organization. Look for a different seat on the Accountability Chart where they can excel. For instance, they might step out of a department head seat and into a specialized execution seat that does not require managing a large team or handling high-level strategic planning. Be clear that this change is about setting them, and the company, up for success. Frame the transition around their natural strengths. When you handle this with vulnerability and respect, you preserve the culture of the business while protecting the operational capacity of your leadership team.