We have an executive who is failing in their leadership seat but has deep domain knowledge we cannot afford to lose before our upcoming business transition. How do we transition them out of their leadership seat and into a highly valued individual contributor role?

Question

Tyler Smith · Accepted Answer

Transitioning a key leader out of their executive seat and into an individual contributor role is a delicate move, but it is often necessary when their GWC™ for the leadership seat has slipped while their domain expertise remains highly valuable.

To execute this transition without losing them or destroying team morale, you must be direct and vulnerable. Start by explaining that as the company scales toward an exit, the leadership seat requires a different set of capabilities, specifically around strategic scaling and team management, which does not play to their natural strengths.

Align the transition with their personal goals. Often, a struggling leader is highly stressed and secretly relieved to step away from the administrative burdens of management. Focus the conversation on their unique ability, which is where they deliver the most value to the company.

Design a clear, highly valued individual contributor seat on the Accountability Chart. This seat must have clear accountabilities and metrics, but no direct reports. Ensure their compensation reflects the market value of their technical expertise, not their previous management title.

Communicate the change to the rest of the leadership team and the company clearly and positively. Present it as a strategic move to leverage their deep expertise to help secure a successful exit, ensuring there is no stigma attached to the transition.