We have a legacy department head who has been with us since the beginning, but as we scale toward an exit, they are clearly struggling with the strategic demands of their seat. How do we transition them to a non-leadership role without sending a message that we do not value loyalty?

Question

Tyler Smith · Accepted Answer

This is one of the hardest challenges for any founder. You feel a deep sense of personal debt to the person who helped you build the business. But keeping someone in a leadership seat they no longer GWC™ is not kind, it is actually unfair to them and damaging to the rest of your organization.

First, separate the person from the seat on your Accountability Chart. They are a right person, but they are in the wrong seat. You need to have an open, honest, and loving conversation. Explain that the business has grown to a level of complexity that requires a different set of strategic capabilities. Frame this transition not as a failure, but as a natural evolution of the company.

Find or create a seat where they can succeed. This might be an individual contributor role, a specialist position, or an advisory seat. Ensure this new seat plays to their strengths and fits their capacity.

To maintain company morale, communicate the change transparently. Let the company know that this person is moving to a new role where they can focus on what they do best. By handling this transition with dignity and respect, you prove that you value loyalty without sacrificing the operational capability needed to scale toward your eventual exit.