tyler-smith.com · Questions & Answers

We are preparing for an exit and need to restructure our administrative and HR departments to be more efficient, but we refuse to lay off our loyal back-office staff. How do we realign our Accountability Chart to eliminate redundancies without firing anyone?

To prepare for a clean exit, you must build your Accountability Chart based on the optimal structure for the business, completely ignoring the people who currently work there. This is the structure-first rule of EOS. If you try to design your chart around your current staff, you will lock in inefficiencies that sophisticated buyers will spot immediately, which will hurt your valuation.

First, design the perfect administrative and HR structure for the company. Once that future-state chart is finalized, look at your existing people and run a GWC evaluation for the new seats. You will likely find redundancies or seats that have changed.

Instead of laying people off, look for value gaps in your organization that these loyal employees can fill. With an upcoming exit, there is an immense amount of work required that is typically outside of day-to-day operations. This includes documenting tribal knowledge, organizing historical financial records, and managing compliance audits.

You can transition redundant administrative staff into specialized project seats dedicated to exit readiness. For example, you can create a temporary Data Migration and Process Documentation seat. This allows you to leverage their deep historical knowledge of the business to help build your exit superstructure.

By moving them into these high-value, transition-focused seats, you keep your loyal staff employed, protect your culture, and actively build the documentation and systems that buyers want to see. You solve the redundancy issue while accelerating your exit preparation.

Category: Accountability Chart & Seats

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