tyler-smith.com · Questions & Answers

We have a brilliant head of engineering who customizes our product delivery for every client, and a buyer will immediately flag this as key-person risk. How do we build structural guardrails around this role on our exit runway to prove the business doesn't depend on their unique genius?

When a key manager holds all the specialized knowledge for delivery, a buyer sees a massive risk of operational collapse post-sale. To neutralize this key-person risk, you must decouple their unique technical expertise from your daily delivery systems. Start by mapping this manager's responsibilities onto your EOS Accountability Chart. You must separate their strategic engineering seat from the daily execution tasks.

Next, use your weekly Level 10 Meeting to force the issue. Create a specific Rock to document their custom delivery workflows. Have them build a simple decision tree that junior team members can follow. If they are the only person who can solve a problem, you do not have a process, you have a bottleneck.

To prove this works to a prospective buyer, run a fire drill. Have your key engineer take a two-week vacation with zero contact. If your team cannot execute the delivery cycle without them, your business is not ready to sell. Use this test to identify gaps, document the solutions, and ensure that multiple team members GWC the required seats. Buyers pay for systems that run on rails, not for businesses that depend on a single resident genius to survive.

Category: Exit Planning

← All questions