tyler-smith.com · Questions & Answers

I own ninety percent of the company, and I want to know where my name goes as the Owner on the Accountability Chart. Why is there no Owner seat, and how do I separate my role as a shareholder from my role inside the business?

This is a common source of confusion for founders. The Accountability Chart has absolutely nothing to do with equity ownership or shareholder status. It is strictly a tool to define the seats required to run the day to day operations of the business.

As an owner, you have a seat at the shareholder or board level, which exists above the Accountability Chart. In that capacity, your role is to define the long term vision, approve major financial decisions, and hold the leadership team accountable for performance.

Inside the day to day business, however, you must operate strictly within the bounds of the seats you occupy on the Accountability Chart, which is typically the Visionary or the Integrator seat. When you are acting as an employee inside the business, you must report to the designated seat holder above you, even if you own the company.

If you occupy the Visionary seat, you report to the Integrator for your operational execution, and you must respect their authority. If you try to pull rank as the owner during a daily operational dispute, you destroy the integrity of your management system.

Separating these roles is critical for preparing your business for a clean exit. A buyer wants to purchase an operating company, not a collection of personal relationships dominated by an owner's whims. Clearly separating your shareholder status from your operational seats proves that the business can run on a predictable system.

Category: Accountability Chart & Seats

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