My co-founder owns fifty percent of the equity but is currently holding an operational seat that he clearly does not GWC. He is falling behind on his goals and frustrating the rest of the leadership team. How do we address a right-person-wrong-seat issue when the person in question is an equal owner?

Question

Tyler Smith · Accepted Answer

Handling a right-person-wrong-seat issue with an equal business partner is one of the hardest challenges an owner can face, but you must prioritize the health of the company.

First, separate your partner's role as an owner from his role as an employee holding an operational seat. Ownership equity does not give someone the right to hold a seat they do not GWC.

Next, schedule an open and honest meeting with your partner, with your Integrator present if appropriate. Walk through the Accountability Chart and evaluate his performance objectively. Show him where his metrics on the weekly Scorecard are falling behind and where his Rocks have missed deadlines.

Run a direct GWC check on his seat. Help him see that his lack of execution is hurting the business and frustrating the leadership team. He may actually feel relieved to admit he no longer wants the operational pressure of this specific seat.

Work together to find a different seat on the Accountability Chart that he does GWC, such as a specialized advisory role or a board position. If no such seat exists, he must step out of operations completely. He will still retain his fifty percent equity and owner distributions, but he will no longer manage the daily operations of the business.