During the due diligence process, we need our key managers focused on hitting their quarterly Rocks, but they are starting to smell a deal. How do we keep them focused and aligned without violating our confidentiality agreements?

Question

Tyler Smith · Accepted Answer

Rumors of a sale will cause your best people to look for other jobs out of fear of the unknown. To prevent this distraction, you must maintain a rock-solid operational discipline. Keep your weekly Level 10 Meeting™ completely focused on solving issues and executing Rocks. Do not cancel or delay these meetings, as changes in your routine will raise red flags. If a manager asks directly about a potential sale, you must handle the question honestly but within the bounds of your confidentiality agreements. You can explain that as part of your commitment to long-term growth, you are constantly exploring strategic partnerships and capitalization options to scale the business. Turn the focus back to their individual seats on the Accountability Chart. Remind them that their primary responsibility is to hit their numbers on the Scorecard, which protects the company and their own careers regardless of the capitalization structure. Additionally, work with your exit planning advisors to design key employee retention agreements or phantom stock plans before you enter due diligence. Having these financial incentives aligned with a successful close keeps your leadership team highly motivated to push the deal across the finish line.