Our Head of Technology is a core values match and has been with us for five years, but as we prep our platform for a buyer's due diligence, it is clear he lacks the technical capacity to manage our new security and compliance requirements. How do we handle this right-seat call without losing him?

Question

Tyler Smith · Accepted Answer

This is a classic right-person, wrong-seat situation. Your Head of Technology is a right person because he shares your core values, but he is in the wrong seat because he lacks the capacity to handle the advanced technical requirements needed for a successful exit.

To resolve this, you must separate the person from the seat. You cannot lower the standards of the seat just to accommodate his current skill level. Buyers will audit your technology infrastructure, and any compliance gaps will lead to a slashed valuation or a killed deal.

The seat requires someone who fully gets, wants, and has the capacity to manage enterprise-grade security. Since he does not have that capacity, you must find a new seat for him where he can shine.

Perhaps he moves into an engineering lead role or a product development seat where his historical knowledge is highly valuable but the intense compliance burdens are handled by someone else.

Once you have transitioned him to a seat he GWCs, you must recruit a new, highly qualified leader to occupy the Head of Technology seat. This preserves his valuable institutional knowledge, keeps your culture intact, and ensures your technology infrastructure is robust enough to pass due diligence with flying colors.