We have an executive who no longer fits our operational needs, and our leadership team wants to invent a VP of Special Projects seat on the Accountability Chart to keep them on payroll. Why is creating parking lot seats dangerous, and what should we do instead?

Question

Tyler Smith · Accepted Answer

When a long-tenured executive is no longer capable of running a critical operational seat, owners frequently invent a fictitious title like VP of Special Projects or Strategic Advisor on the Accountability Chart. They do this to avoid having a difficult conversation or firing a friend.

Creating parking lot seats is poisonous for three reasons:

- It destroys organizational clarity. Nobody on the team understands what the person actually does, which breeds resentment among leaders carrying heavy, measurable scorecards.
- It burns overhead on vague, non-revenue-generating activity that provides zero measurable return.
- It sets a precedent that longevity outweighs contribution, destroying your high-performance culture.

The Accountability Chart only exists to represent the necessary structure of the business, not an executive daycare. Every single seat must have five clearly defined, measurable roles that directly tie to executing the V/TO®.

If you cannot define five distinct, recurring roles that generate measurable enterprise value, the seat should not exist. If you cannot place that person in a legitimate, pre-existing seat where they pass GWC™ 100 percent, you have reached the end of the road.

Be transparent. Tell them the truth: the business has outgrown the role they occupied, and there is no longer a natural seat on the chart that matches their skills. Give them generous severance, celebrate their contributions, and let them leave with their reputation intact. Do not insult them or your team by creating a fake job.