I have a loyal executive who has been with me for twelve years, gets the culture, and wants the job, but they simply do not have the capacity to handle our operations now that we have scaled past twenty million. How do I handle this without destroying our culture?

Question

Tyler Smith · Accepted Answer

This is a classic GWC issue where an employee gets it and wants it, but lacks the capacity. In EOS, capacity is not just about time. It encompasses mental, physical, emotional, and conative ability. When a business scales from five million to twenty million, its operational complexity grows exponentially.

Addressing the Capacity Gap

To handle this situation without destroying your company culture, you must be completely honest and transparent. Keeping a valued employee in a seat where they cannot succeed is ultimately the most unkind action you can take. This can lead to silent frustration, operational failures, and may even put other employees' jobs at risk.

Steps for Resolution

Here's a structured approach to resolve this GWC conflict:

1. Run a Formal GWC Assessment: Start by performing a formal Gets It, Wants It, Capacity (GWC) assessment for the operations seat. This will help you objectively confirm that your executive genuinely has a "three-strike no" on the capacity component for the current demands of the role. For more on objective assessment, consider [how to objectively assess my own GWC for this seat](/qa/founder-bottleneck-gwc-assessment).

2. Separate the Person from the Seat: Understand that this executive is a right person because they embody your core values. The issue is that they are in the wrong seat for the company's current scale. It's crucial to acknowledge their cultural alignment while addressing the functional mismatch.

3. Identify a New, Suitable Seat: Review your company's Accountability Chart for other areas where their unique strengths and cultural fit would be a perfect match. For example:
• If they are highly structured and possess strong Follow Thru, they might excel leading a new quality assurance department.
• They could also be ideal for a specialized client success initiative, leveraging their deep understanding of the company's culture and history.
• Consider how to [restructure without layoffs for a software pivot](/qa/restructuring-without-layoffs-software-pivot) or how to [restructure customer support with AI automation](/qa/restructuring-customer-support-ai-automation) to find emerging roles.

4. Have an Open and Honest Conversation: Frame this discussion around the evolving needs of the company and the executive's personal well-being. Present the potential new seat as a strategic move where they can genuinely win and thrive, rather than struggling in a role that has outgrown their current capacity.
• If no such internal seat exists that truly aligns with their GWC, you must consider transitioning them out of the company with dignity and respect. However, a growing business often has ample opportunities for culture fits in right-sized roles. This is a common challenge, similar to [adjusting compensation after an Accountability Chart restructure](/qa/adjusting-compensation-after-accountability-chart-restructure) when a leader moves to a new role.

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