We are restructuring our Accountability Chart to prepare for an exit, and we realize that our separate Procurement seat should be consolidated under our Operations seat. However, the person in the Procurement seat is a loyal VP who will view this as a demotion. How do we handle this change?

Question

Tyler Smith · Accepted Answer

When you restructure for efficiency and exit readiness, you must prioritize the health of the organization over individual titles and egos. A buyer wants to see a lean, logical Accountability Chart, not a bloated structure designed to keep peace among your executives. If having a separate Procurement seat at the leadership level creates unnecessary layers, you must consolidate it.

To handle this transition without causing an executive rebellion, frame the change around the long-term vision and the needs of the business. Schedule a one-on-one meeting with the VP before presenting the new chart to the wider team. Explain the structural logic clearly: the business requires a unified Operations and Procurement function to scale and maximize valuation.

Evaluate where this VP fits in the new structure. If they are the right person for a different seat on the chart, show them how their skills will drive the company forward in that new role. If they are to report to the VP of Operations now, focus on the critical nature of their new specialized seat and how it directly impacts the company's valuation.

If they refuse to accept the structural change due to ego, they are no longer a right-person-right-seat fit. You cannot let one person's pride hold back the structural evolution of your entire business.