# People Component: Right People, Right Seats

The People Component is where most entrepreneurial companies struggle the hardest. Having the right people in the right seats is the single biggest factor in a company's ability to execute its vision. This guide covers the Accountability Chart, the Visionary/Integrator dynamic, the People Analyzer, GWC assessment, and practical frameworks for making difficult people decisions.

## The Accountability Chart

The Accountability Chart is not an org chart. An org chart shows hierarchy and reporting lines. An Accountability Chart shows the major functions of the business and who is accountable for each function's results.

### Why Not an Org Chart?

| Org Chart | Accountability Chart |
|-----------|---------------------|
| Shows who reports to whom | Shows who owns what outcomes |
| People-centric | Function-centric |
| Grows with headcount | Stays simple (5-7 major functions) |
| Can mask shared accountability | Enforces single-point accountability |

### Building the Accountability Chart

**Step 1: Start with the Three Major Functions**

Every business has three core functions, regardless of industry:

```
         Visionary ←→ Integrator
                        |
         ┌──────────────┼──────────────┐
         |              |              |
   Sales/Marketing  Operations     Finance
```

**Step 2: Define 3-5 Accountabilities per Function**

Each major function has specific outcomes it is responsible for. Write these as bullet points under each seat.

| Function | Key Accountabilities |
|----------|---------------------|
| **Sales/Marketing** | Revenue targets, lead generation, brand management, customer acquisition, sales process |
| **Operations** | Service/product delivery, quality assurance, project management, customer satisfaction, capacity planning |
| **Finance** | Financial reporting, cash flow management, budgeting, legal compliance, risk management |

**Step 3: Add Custom Functions if Needed**

Some companies need additional major functions:

- **Technology/Engineering** (for product companies)
- **People/HR** (for companies with 50+ employees)
- **Customer Success** (for subscription businesses)

**Step 4: Name the Seat, Then Fill It**

Design the Accountability Chart for the company you need, not the company you have. Determine the right structure first, then identify who should fill each seat. Sometimes one person holds multiple seats (common in smaller companies). That is fine as long as it is explicit.

### The One-Person-Per-Seat Rule

Every seat has exactly one accountable owner. Shared accountability is no accountability. If two people share a seat:
- Neither feels fully responsible
- Conflicts go unresolved
- Results suffer

When two people argue about who owns a function, the Integrator decides.

## Visionary vs. Integrator

The two most important seats in any EOS company are the Visionary and the Integrator. These roles are complementary and must work in partnership.

### Role Comparison

| Dimension | Visionary | Integrator |
|-----------|-----------|------------|
| **Focus** | Future, big picture | Present, details |
| **Strength** | Ideas, relationships, culture | Execution, accountability, alignment |
| **Energy** | Inspires and energizes | Organizes and stabilizes |
| **Meetings** | Often bored in operational meetings | Runs the Level 10 meeting |
| **Decisions** | Makes 10 decisions, 7 are great | Makes fewer decisions, all well-considered |
| **People** | Attracts talent | Develops and manages talent |
| **Conflict** | May avoid hard conversations | Resolves conflict directly |

### The Visionary's Five Roles

1. **Big ideas:** Generate new products, markets, and strategies
2. **Culture:** Set the tone, model core values
3. **Key relationships:** Manage top customers, partners, industry connections
4. **Creative problem solving:** Tackle the company's biggest challenges
5. **Selling:** Close major deals and evangelize the company

### The Integrator's Five Roles

1. **Run the business:** Manage day-to-day operations
2. **Lead the leadership team:** Facilitate meetings, hold leaders accountable
3. **Execute the V/TO:** Translate vision into quarterly and weekly action
4. **Resolve conflicts:** Break ties, mediate disputes, make hard calls
5. **Filter Visionary ideas:** Evaluate which ideas to pursue and which to shelve

### The Visionary-Integrator Relationship

**Healthy dynamics:**
- [ ] They meet weekly for a 30-60 minute "Same Page Meeting"
- [ ] The Visionary shares ideas freely; the Integrator evaluates and filters
- [ ] The Integrator has authority to run the business without daily Visionary approval
- [ ] Disagreements are resolved privately, not in front of the team
- [ ] Both publicly support each other's decisions

**Unhealthy dynamics:**
- The Visionary micromanages the Integrator
- The Integrator blocks all new ideas
- They contradict each other in team meetings
- Neither is willing to let the other lead in their domain

## The Five Major Seats

Below is a detailed breakdown of each major seat, including common sub-functions and what "great" looks like.

### 1. Sales/Marketing

**Purpose:** Generate revenue and build the brand.

| Sub-Function | Accountabilities |
|-------------|-----------------|
| Marketing | Lead generation, content, brand, campaigns, market research |
| Sales | Pipeline management, closing, account management, forecasting |
| Business Development | Partnerships, strategic accounts, new market entry |

### 2. Operations

**Purpose:** Deliver the product or service at the promised quality.

| Sub-Function | Accountabilities |
|-------------|-----------------|
| Delivery/Fulfillment | On-time delivery, quality standards, capacity planning |
| Project Management | Resource allocation, timeline management, scope control |
| Customer Service | Issue resolution, satisfaction metrics, retention |

### 3. Finance

**Purpose:** Manage the money and mitigate risk.

| Sub-Function | Accountabilities |
|-------------|-----------------|
| Accounting | Books, AP/AR, payroll, tax compliance |
| Financial Planning | Budgets, forecasting, cash flow management |
| Legal/Compliance | Contracts, regulatory compliance, risk assessment |

### 4-5. Custom Seats

Added based on your business model. Common additions:

- **Technology:** Product development, infrastructure, security, technical debt
- **People/HR:** Recruiting, onboarding, training, culture, performance management

## The People Analyzer

The People Analyzer is a simple tool that evaluates every employee on two dimensions: core values fit (Right Person) and role fit (Right Seat).

### Scoring Guide

**Step 1: Rate Core Values**

For each core value, score every team member:

| Symbol | Meaning | Description |
|--------|---------|-------------|
| **+** | Most of the time | Exhibits this value consistently (80%+) |
| **+/-** | Sometimes | Exhibits this value inconsistently (50-80%) |
| **-** | Rarely | Does not exhibit this value (<50%) |

**The Bar:** Everyone must be "+" on every core value. One "+/-" is a coaching conversation with a 90-day deadline to improve. Two "+/-" or any "-" means this is the wrong person.

### People Analyzer Template

| Name | Core Value 1 | Core Value 2 | Core Value 3 | Core Value 4 | GWC | Decision |
|------|-------------|-------------|-------------|-------------|-----|----------|
| Sarah | + | + | + | + | Y/Y/Y | Keep (A-player) |
| James | + | +/- | + | + | Y/Y/Y | Coach (90-day plan) |
| Priya | + | + | + | + | Y/N/Y | Move seat |
| Dave | - | +/- | + | + | Y/Y/Y | Exit |
| Lisa | + | + | + | + | Y/Y/N | Develop or move |

## GWC Assessment

GWC stands for Get it, Want it, Capacity to do it. All three must be "yes" for someone to be in the right seat.

### Get It

Does this person truly understand the role? Not just the tasks, but the nuances, the judgment calls, the unwritten rules. Someone who "gets it" can anticipate problems, see connections, and make decisions without being told.

**Diagnostic questions:**
- Can they explain the role's purpose in one sentence?
- Do they see the downstream impact of their decisions?
- Do they need constant direction, or do they figure things out?

### Want It

Does this person genuinely want this specific role? Not a paycheck. Not a title. This actual work, every day. People who "want it" show up with energy for the role, not just tolerance.

**Diagnostic questions:**
- Would they choose this role if money were not a factor?
- Do they light up when talking about their work?
- Are they making sacrifices willingly, or resentfully?

### Capacity to Do It

Does this person have the intellectual, physical, emotional, and time capacity to excel? Capacity is the hardest to change. Skills can be trained. Capacity is more fundamental.

**Diagnostic questions:**
- Can they handle the volume and complexity of the role?
- Do they have the emotional resilience the role requires?
- Are they already at capacity, or do they have room to grow into the role?

### GWC Decision Matrix

| G | W | C | Verdict | Action |
|---|---|---|---------|--------|
| Y | Y | Y | Right seat | Invest and retain |
| Y | Y | N | Capacity gap | Train, reduce scope, or move |
| Y | N | Y | Motivation issue | Have honest conversation, likely move seats |
| Y | N | N | Wrong seat entirely | Move to a different seat |
| N | Y | Y | Doesn't get it | Coach for 90 days, may not be fixable |
| N | Y | N | Square peg, round hole | Move seats |
| N | N | Y | Capable but wrong fit | Find the seat they get and want |
| N | N | N | Wrong seat | Move immediately |

## Right People, Right Seats Matrix

| | Right Seat | Wrong Seat |
|---|-----------|------------|
| **Right Person** | A-player. Protect, invest, promote. | Move to the right seat. They share your values -- find where they thrive. |
| **Wrong Person** | Hardest call. They produce results but damage culture. The answer is almost always exit. | Exit. No fit on either dimension. Delay makes it worse. |

### The Three-Strike Rule for Wrong Person/Right Seat

This is the most painful scenario. A top performer who violates core values:

1. **Strike 1:** Direct conversation. "Here is the core value you are violating, here is the specific behavior, here is what needs to change."
2. **Strike 2:** Written 30-day improvement plan with specific behavioral milestones.
3. **Strike 3:** Exit. The team is watching. Keeping a wrong person teaches everyone that core values are negotiable.

## Difficult Conversations Framework

### Preparing for the Conversation

- [ ] Write down the specific issue with concrete examples
- [ ] Identify which core value or GWC element is in question
- [ ] Choose a private setting with no interruptions
- [ ] Plan to listen more than talk (60/40 rule)
- [ ] Have a clear outcome in mind (coaching plan, role change, or exit)

### The Conversation Structure

1. **State the issue directly.** "I need to talk about [specific behavior/performance]. This is important for both of us."
2. **Give specific examples.** "On [date], [what happened]. Last week, [another example]."
3. **Connect to core values or GWC.** "This conflicts with our core value of [value]" or "I'm concerned about your capacity for [specific aspect]."
4. **Listen.** Ask: "What's your perspective?" Listen without interrupting.
5. **Agree on next steps.** "Here's what needs to change, by when, and how we'll measure it."
6. **Document.** Confirm the conversation and commitments in writing within 24 hours.

## Hiring for Core Values Fit

### Interview Process

**Step 1: Screen for core values first.** Before evaluating skills, assess whether the candidate aligns with each core value.

**Step 2: Use behavioral questions tied to each core value.**

| Core Value | Interview Question |
|-----------|-------------------|
| Own It | "Tell me about a time you made a mistake at work. What happened and what did you do?" |
| Do the Right Thing | "Describe a situation where you had to choose between what was easy and what was right." |
| Grow or Die | "What's the last skill you taught yourself? How did you go about it?" |

**Step 3: Back-channel references.** Ask references specifically about core values behaviors, not just competence.

**Step 4: Trial period.** The first 90 days are an extended interview. Evaluate core values fit at 30, 60, and 90 days.

## Quarterly Performance Conversations Template

Every quarter, each leader has a 30-minute conversation with each direct report covering four areas:

| Section | Time | Focus |
|---------|------|-------|
| Core Values Review | 10 min | Rate each value (+, +/-, -). Discuss any +/- with specific examples. Acknowledge strengths. |
| GWC Check | 10 min | Get it (clear on role?), Want it (still energized?), Capacity (right-sized workload?) |
| Rock Review | 5 min | On track / off track. What support is needed? |
| Forward Look | 5 min | Next quarter outlook, development goals, feedback for the leader |

### Documentation Template

```
Employee: ____________  Manager: ____________  Date: ____________
Core Values: [V1] +/+/-/-  [V2] +/+/-/-  [V3] +/+/-/-
GWC: G(Y/N) W(Y/N) C(Y/N)
Assessment: Right Person/Right Seat | Action Needed
Action Items: ____________  Next Review: ____________
```
