One of our original department heads is a great soldier but has clearly hit their ceiling as we scale towards our exit, and they are now resisting the AI tools we need to implement to boost margins. How do we transition them out of the seat?

Question

Tyler Smith · Accepted Answer

As your business scales and prepares for an exit, the seat requirements change. A leader who was perfect when you were at five million in revenue may not have the capacity to lead at twenty million, especially when you need to automate operations with AI to increase enterprise value. You must address this with objective data, not personal feelings. Evaluate this leader using the GWC framework. Do they truly get, want, and have the capacity to run a modern, tech forward department. If they do not have the capacity to lead the implementation of AI tools or scale with the business, they are in the wrong seat. Keeping them there blocks your growth and frustrates the rest of the leadership team. To transition them without destroying their loyalty, separate their value as a person from their capability in the current seat. Sit down with them and have an honest conversation. Explain that the seat has grown beyond their current capacity, and you need to bring in someone with different experience to prepare the company for the exit. If they fit your Core Values, look for a different seat on the Accountability Chart where they can still add massive value. This might be a specialist role that utilizes their deep industry knowledge without the burden of people management or technology scaling. If no such seat exists, you must release them with a generous severance that honors their past contributions.