The Cost of a Bad Fit: Why Having The Right People in The Right Seats Can Make or Break Your Business

The Cost of a Bad Fit: Why Having the Right People in the Right Seats Can Make or Break Your Business

In our business review meetings with our clients, we often use the functional organisation chart to help them assess and refine their team structure. The goal is simple: to have the right people in the right seats.

When roles and responsibilities do not align with the right talent, businesses experience friction, inefficiency, and stagnation. Yet, many business owners find it challenging to make the necessary adjustments. Here’s why it matters, why it is more difficult than it seems, and how to fix it.

The Consequences of Mismatched Roles

A misaligned team does not just slow things down – it can actively harm the business.

• Productivity suffers – When someone is not suited to their role, mistakes increase, tasks take longer, and progress stalls. High performers often pick up the slack, leading to burnout.
• Morale declines – Employees stuck in ill-fitting roles become disengaged or frustrated. Meanwhile, strong team members feel demotivated when they work alongside underperformers.
• Decision-making slows – The wrong leaders in key positions create bottlenecks, making it difficult to delegate, execute, and scale effectively.
• Growth becomes chaotic – Role misalignment becomes even more obvious as the business scales. What worked in the early days will not sustain long-term success without deliberate structure.

Why it is Harder Than it Seems

So why does this happen? Most business owners do not intentionally put the wrong people in the wrong roles – it happens gradually, often for understandable reasons.

• Hiring based on instinct – Rather than assessing for role fit, owners often hire people they ‘like’ or fill positions out of urgency, rather than strategy.
• Promoting based on tenure – Just because someone has been in the business the longest does not mean they are best suited for a leadership position. Not all great employees make great managers.
• Failing to adjust as the business grows – Old roles may no longer be relevant as the company evolves. Businesses that do not update their team structure risk stagnation.

Practical Steps to Assess and Adjust

Fixing these misalignments requires focus. The best teams do not happen by chance – they require intentional assessment and alignment. Rather than focusing on individuals first, clearly define what each role requires. Here’s how we guide business owners through this process.

1. Define the Seats Before Assigning People

Before considering who fits where, ensure the business has the right structure in place. Use a functional organisation chart to map out the key roles needed to run the business effectively.

Consider:

• What are the essential functions of the business?
• What roles are needed to support these functions?
• Are responsibilities clearly defined, or are people taking on tasks outside their role?

This process helps identify gaps, overlaps, and areas where clarity is needed before evaluating individual performance.

2. Identify What Each Role Requires to Succeed

Once the key roles are defined, outline what success looks like in each position. This includes:

• The skills, experience, and behaviours needed for the role.
• The key responsibilities and how they align with business goals.
• The outputs and measures of success for each position.

This step ensures that when assessing team members, the focus is on matching people to the needs of the role, rather than shaping a role around an individual.

3. Assess Current Team Fit

With clear role definitions in place, assess whether current team members are in the best positions to succeed. This is not about removing people, but about understanding strengths and realigning responsibilities where needed.

Ask:

• Is each person’s role aligned with their natural strengths and skills?
• Are they excelling, growing, or struggling in their current position?
• Would any responsibilities need to shift to allow them to perform at their best?

This step often uncovers hidden talent, identifies training needs, and highlights opportunities to refine workflows to better support the team.

4. Adjust and Clarify Roles as the Business Evolves

The structure that works today may not work in six months. Regularly reviewing and refining roles ensures that responsibilities remain clear and aligned as the business grows.

Consider:

• Are any roles becoming too broad or too narrow?
• Have new functions emerged that need dedicated ownership?
• Are roles still aligned with business strategy and priorities?

By treating role alignment as an ongoing process, businesses can support team members in performing at their best, improving efficiency, engagement, and overall success. When the right people are in the right seats, businesses run more smoothly, decisions happen faster, and growth becomes more sustainable. The key is to continuously assess, refine, and align your team with the needs of the business.

If you have any questions about this content or if you would like to speak to us about how our advisory services could help your business, please contact us or call our office on (08) 6212 7200.