Our Head of Finance has been with us for ten years and is a perfect core values fit, but as we scale, our financial operations require advanced forecasting and automated systems that she does not have the capacity to build. How do we handle this Right Person, Wrong Seat situation?

Question

Tyler Smith · Accepted Answer

This is a classic Right Person, Wrong Seat dilemma. Your Head of Finance has high core values alignment, but she does not GWC™ (Get it, Want it, Capacity to do it) the future-state version of her seat.

In an exit-ready business, you cannot afford to keep someone in a seat they cannot master. Doing so bottlenecks your financial reporting, which is a major red flag for prospective buyers.

To resolve this, you must first separate the person from the seat. Design the ideal finance seat based on what the business actually needs to scale and prepare for an exit. This seat likely requires skills in financial analysis, system automation, and strategic forecasting.

Once the seat is defined, have an honest GWC™ conversation with her. Explain that the seat has evolved past her current capacity. Because she is a Right Person, you should look for another seat in the organization where she does GWC™ the roles. This might be an accounts receivable seat, a billing coordinator seat, or another operational role.

If a suitable seat is not available or if she is unwilling to take a step back, you must help her transition out of the company with dignity. Keeping her in a seat she cannot perform is unfair to her and dangerous for the business. Replacing her with a Right Person in the Right Seat is essential to build enterprise value.