Your co-founder's performance is falling short of expectations. Should you reconsider their equity share?
When your co-founder isn't meeting expectations, it's crucial to approach the situation with strategy and sensitivity. Here's how to navigate these choppy waters:
- Engage in a candid discussion to understand the root causes of their performance issues.
- Re-evaluate roles and responsibilities, ensuring they align with each individual's strengths.
- Consider a performance improvement plan before adjusting equity shares, focusing on collaboration and support.
What strategies have you found effective in dealing with partnership challenges?
Your co-founder's performance is falling short of expectations. Should you reconsider their equity share?
When your co-founder isn't meeting expectations, it's crucial to approach the situation with strategy and sensitivity. Here's how to navigate these choppy waters:
- Engage in a candid discussion to understand the root causes of their performance issues.
- Re-evaluate roles and responsibilities, ensuring they align with each individual's strengths.
- Consider a performance improvement plan before adjusting equity shares, focusing on collaboration and support.
What strategies have you found effective in dealing with partnership challenges?
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Acredito que desafios em parcerias fundadoras devem ser tratados com transparência e justiça. Em uma situação como essa, adotaríamos as seguintes etapas: Revisão clara das expectativas: Estabeleceríamos uma conversa direta para alinhar responsabilidades e identificar possíveis barreiras ao desempenho. Implementação de métricas e prazos: Definiríamos objetivos claros com prazos para avaliar melhorias no desempenho, assegurando um processo justo. Discussão sobre participação acionária: Caso os desafios persistam, exploraríamos ajustes na estrutura societária, garantindo que ela reflita contribuições reais ao crescimento da empresa.
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Equity is about long-term commitment, not just current performance. Instead of jumping to adjust shares, have an open, honest conversation about expectations and their role. Maybe they’re facing challenges you’re unaware of. Focus on aligning goals and finding solutions first. Equity changes should only happen after clear communication and as a last resort.
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In this scenario, it's important to be empathetic - what is going on in their world? why are they not able to meet expectations? also, potentially, how are you complicit in creating the conditions which you say you do not want? Then having the open conversation in a way which is 'fierce' but not ferocious (i.e. you say what needs to be said but not in a nasty way). I would highly recommend agreeing with your co-founder how you would handle this eventuality as early as possible when times are good, and documenting this clearly, so you have an easy frame of reference to refer back to should you need it.
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- We Sign an Expectation Manifesto Early Before starting, we outline clear goals and responsibilities. This serves as a reference if expectations aren’t met. - Separate Issues from Circumstances I focus on whether underperformance is due to lack of effort or external challenges. It’s important to address the root cause. - Have a Frank Discussion Openly discuss the gaps, align on priorities, and agree on a plan to get back on track. - Set a Performance Roadmap Together, we set measurable targets with clear timelines to evaluate improvement. - Consider Equity Last Adjusting equity is not up to the CEO it has to be agreed upon with your co-founder Collaboration and clarity are vital for resolving co-founder issues constructively
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