We have a loyal early employee who simply does not have the capacity to handle our newly defined customer support leadership seat, but we want to keep them in the company. How do we make this tough Right Person, Wrong Seat call and move them to a smaller seat without causing them to quit?

Question

Tyler Smith · Accepted Answer

Handling a loyal, long-tenured employee who no longer fits their seat is one of the hardest tests for any business owner. However, keeping a Right Person in the Wrong Seat will ultimately hold your company back and frustrate the employee who knows they are struggling.

Start by conducting a transparent GWC™ check with them. Explain that as the business scales toward an exit, the demands of their current leadership seat have grown. Be direct about where they are falling short, whether it is in the technical capacity or the management demands of the role. Because they share your core values, they will likely admit they are overwhelmed.

Next, look at your Accountability Chart in a vacuum to find or design a seat where they can succeed. This might be a specialized individual contributor seat or a focused technical role that utilizes their deep tribal knowledge without the burden of people management.

Present this transition not as a demotion, but as a strategic realignment to set them up for success. Show them how their new seat directly supports the company goals and fits their personal strengths. If there is no right seat available that fits their skills, you must make the difficult decision to let them go. Keeping someone in a seat they cannot fulfill is unfair to them and dangerous for your exit valuation.