We are preparing for an exit using the Step by Step Exit model, but our legacy VP of Finance is resistant to modernizing our accounting systems for due diligence, claiming the old way works fine. How do I address this loyalty to legacy systems when it directly threatens our company's ultimate enterprise value?

Question

Tyler Smith · Accepted Answer

Preparing for a clean transition requires building an exit-ready superstructure. Under the Step by Step Exit model, your financial systems must be robust, transparent, and easily auditable. If your legacy VP of Finance is clinging to outdated processes, they are actively capping your enterprise value and creating a massive bottleneck.

You must address this issue directly using the GWC™ framework. Sit down with your VP of Finance and have a candid conversation about their seat on the Accountability Chart. Ask yourself, and ask them, if they truly Get, Want, and have the Capacity to run a modernized, exit-ready department.

Start by defining what the modernized seat looks like. It is not just about keeping the books. It is about preparing the financial documentation that a sophisticated buyer will demand. Explain that the old way may have worked to get you here, but it will not get you to a successful exit.

If they Get and Want the modernized role, but lack the Capacity, you can provide training or technology resources to bridge the gap. However, if they do not Get or Want the new requirements of an exit-ready finance seat, you have a Right Person in the Wrong Seat.

You cannot allow loyalty to the past to compromise the future of the company. If they cannot or will not adapt to the standards required by the Step by Step Exit model, you must make a hard decision. Transition them to a different role where their historical knowledge is valuable, or help them find a clean exit of their own.