We have an early-stage employee who is currently in our COO seat. They are fiercely loyal and have been with us through thick and thin, but they clearly do not GWC the seat at our current fifty-million-dollar run rate. How do we make the hard decision between their past loyalty and our future needs without destroying team morale?

Question

Tyler Smith · Accepted Answer

Transitioning a fiercely loyal, early-stage employee who has outgrown their seat is one of the hardest tests of leadership. When your business scales to a fifty-million-dollar run rate, the complexity of the COO seat changes dramatically. While this executive has unmatched institutional knowledge, you must separate historical loyalty from current capability.

To handle this cleanly, you must evaluate them strictly through the GWC™ framework. Ask yourself three simple questions: Do they get it? Do they want it? Do they have the capacity to do it?

Getting it means they truly understand the role at a fifty-million-dollar scale. Wanting it means they genuinely desire the pressure and responsibilities of this larger seat. Capacity means they have the mental, emotional, and physical capability to lead at this level.

If they do not GWC™ the seat, keeping them in it is unfair to them and damaging to the company. It creates a ceiling for the entire organization and breeds resentment among other team members who are held to high standards.

Your recommendation is to have an honest, compassionate conversation. Acknowledge their immense contribution to the company's success. Explain that the requirements of the COO seat have evolved beyond their current capacity. Work together to find a different seat on the Accountability Chart where they do GWC™ the role and can still add high value, such as a specialized operational or advisory seat. If no such seat exists, you must transition them out of the organization with deep gratitude and a generous package.