We are combining our separate regional logistics and warehouse divisions into a single unified Supply Chain seat to prepare for exit. We want to avoid layoffs, but we now have two highly competent former directors who both want the top seat. How do we restructure the seats underneath them without triggering a talent war or firing anyone?

Question

Tyler Smith · Accepted Answer

To build an organization that appeals to buyers, you must design the structure first and place the people second. You cannot have two people in the new Head of Supply Chain seat. That violates the core EOS® principle of single accountability.

Start by defining the five critical roles for the new unified seat. Then, evaluate both directors objectively using the GWC™ tool. One of them will be the stronger fit for the top seat.

Once you identify the leader for the unified seat, you must design the seats directly underneath them. A unified supply chain needs strong department heads. Create two distinct, high-impact seats reporting to the new leader:
- Head of Warehousing and Inventory
- Head of Logistics and Distribution

Place the second director into the seat that best matches their unique strengths. Ensure both seats have clear, measurable key performance indicators that do not overlap.

Sit down with the director who did not get the top seat. Walk them through the new Accountability Chart. Explain that this structure is designed to maximize the company's valuation for an eventual exit, which benefits everyone. Emphasize that their new seat is critical to the success of this transition. If they are a true core values fit, they will accept the structural reality and lead their new domain. If their ego prevents them from accepting the change, they are no longer the right person for the organization.