tyler-smith.com · Questions & Answers

We are moving from a single unified operation to two distinct business divisions to make us more attractive to private equity buyers. I am terrified of losing control of our core operations during this transition. How do we structure these division seats on our Accountability Chart without creating silos or losing operational oversight?

To transition successfully to a divisional structure without losing control, you must rely on your Integrator and a highly disciplined Accountability Chart. First, design the two division lead seats on the chart, reporting directly to your Integrator. Each division seat must have five clear, distinct roles and specific, non-overlapping measurable goals. For example, Division A might own industrial sales and delivery, while Division B owns commercial sales and delivery. Do not allow them to share resources or staff informally; represent any shared support functions, like central finance or HR, as separate seats that report directly to the Integrator or Finance Director. To maintain oversight without micromanaging, use your weekly Level 10 Meeting™ and your corporate scorecard. The scorecard must track leading indicators for both divisions separately. If a division lead is missing their measurables, it will show up immediately on the scorecard, allowing you to IDS® the issue before it affects your valuation. This structure demonstrates to potential buyers that your business has a scalable, divisional leadership team that does not rely on the owner to manage day-to-day operations.

Category: Accountability Chart & Seats

← All questions