We are preparing the business for an exit in two years, but my loyal operations director is struggling to keep up with our new technology integrations. Do we spend time training them to close this capability gap, or do we replace them now to avoid delaying our exit?
When you are preparing for a clean exit, time is your most scarce resource. Buyers do not pay multiples for potential; they pay for operational excellence and a leadership team that can run without the founder. A loyal leader who cannot scale is a massive risk.
You must evaluate this leader using the GWC framework: Do they Get it, Want it, and have the Capacity to do the job? Capacity includes the mental, physical, and emotional capability to handle the seat as it exists today and as it will exist post-exit.
If they lack the capacity to lead your new AI-powered operations and tech integrations, you cannot afford to wait. Training someone to close a fundamental capability gap usually takes twelve to eighteen months, with no guarantee of success. This delay will stall your execution and directly drag down your business valuation.
The most respectful and practical path is to address the issue immediately. Have an honest conversation. If they do not GWC the scaling seat, look at the Accountability Chart to see if there is a different, non-leadership seat where their institutional knowledge is valuable and where they can succeed. If not, you must transition them out of the business. You must prioritize the capability of your leadership team over personal loyalty to ensure a successful exit.
Category: Leadership Team