I have an executive who is fiercely loyal and a perfect core values fit, but their department has missed its primary scorecard metrics for three consecutive quarters. I am struggling to separate my personal gratitude for their loyalty from the cold reality that their underperformance is damaging our business valuation. How do we address this?

Question

Tyler Smith · Accepted Answer

It is easy to let personal gratitude and loyalty blind you to operational reality. However, keeping a leader in a seat they cannot perform in is not kind, and it is certainly not business-smart. As you prepare your company for a clean exit, buyers will look closely at your leadership team. A department that consistently misses its scorecard metrics is a massive red flag that discounts your enterprise value.

You must evaluate this leader objectively using the GWC™ tool. Do they get, want, and have the capacity to do the job at this level? If they fit your core values but are missing their metrics for three consecutive quarters, they lack the capacity to scale with the business.

To address this, have an honest, direct conversation. Share the scorecard data and explain that the current results are unsustainable. Do not make it personal. Focus purely on the numbers and the needs of the seat on the Accountability Chart.

Give them one quarter to turn the metrics around, and agree on clear, measurable milestones. If they still cannot hit the numbers, you must move them out of that seat. Because they are a core values fit and have high loyalty, you should try to find another seat in the organization where they can succeed, perhaps as an individual contributor. If no such seat exists, you must transition them out of the company. Honoring their loyalty means treating them with respect and helping them exit gracefully, not allowing them to drag down the value of the business you built.