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When Your A-Players Become B-Players
CARTER REPORTS
Greetings - It’s David here.
Carter Reports is formatted as a One Must-Read newsletter. Each week I send you one story and explain why it's worth your time. My choices include key issues for growing companies; different points of view, and hidden gems. These are the stories I know will give you a competitive edge.
Somewhere between $5M and $10M, almost every founder faces the same conversation about someone who helped build the company — and almost all of them wait too long to have it. This week's piece is about why that happens, and why it is almost always a stage mismatch rather than a performance problem. If someone specific comes to mind reading this, you are not alone.
I appreciate your trust and readership. Best. David
One Must-Read Article
When Your A-Players Become B-Players
The pattern is so consistent it has become predictable. Somewhere between $5M and $10M in revenue, a founder looks across the conference table at the person who built the company alongside him — the head of operations who set up every system, the sales lead who closed the first hundred customers, the engineer who shipped the original product — and quietly realizes something has shifted. The work is still getting done. The loyalty is still there. But the company has outgrown the person, and the person has not grown with it.
This is one of the hardest moments in growing a business, and almost no one talks about it honestly.
It’s Predictable
In the work I have done across growth-stage companies, the timing of this shift is remarkably consistent. It happens at the point where the company stops being run by relationships and starts being run by systems. That transition almost always lands between $5M and $10M, give or take, depending on the industry and the complexity of the operating model.
Up to that point, an A-player is someone who can hold the company in their head. They know every customer by name. They remember which contract has the unusual renewal clause. They can answer almost any operational question off the top of their head, because they have personally touched almost everything. That is exactly what the company needs at $2M, and it is genuinely heroic work.
Then the company crosses a threshold. Suddenly there are too many customers to remember, too many processes to hold in one head, too many people to manage by walking around. The job stops being about doing the work brilliantly and starts being about building the system that lets other people do the work. That is a different job. It rewards different skills. And the person who was unmistakably an A-player at the old job is, almost overnight, struggling at the new one.
They have not gotten worse. The job got harder in a way that does not reward what made them great.
How It Shows Up
The signals are subtle at first, and they almost always look like effort problems before we recognize them as fit problems.
The person who used to anticipate everything starts missing things. Not because they care less, but because there is now too much to anticipate, and they have not built the systems to track it. Meetings that used to be efficient become longer, because they are still trying to make decisions the way they did when the team was five people. Their team starts going around them to get answers, not out of disrespect, but because the bottleneck is real. The founder finds themselves stepping in more often, jumping into details they used to be able to ignore.
And here is the part that makes it so hard to see clearly: the person is still working incredibly hard. Often harder than ever. The hours are longer, the effort is visible, the loyalty is unquestioned. From the outside, this looks like an A-player giving everything they have. From the inside, the founder can feel that something is not working, but cannot quite name it without feeling disloyal.
Why Founders Wait Too Long
Almost every founder who has been through this waits longer than they should. The reasons are human and they are worth naming.
There is loyalty, of course. This person showed up before there was a company worth showing up for. They took the risk. They took the pay cut. They believed before there was much to believe in. That earns something real, and we should not pretend it does not.
There is also the founder’s own discomfort with the conversation. We tell ourselves we are protecting the person, when often we are protecting ourselves from the awkwardness of what needs to be said. We give it another quarter. We hope a new hire underneath them will solve it. We restructure the org chart in a way that quietly works around the problem rather than addressing it.
And there is the fear, sometimes unspoken, that if we move this person we will break something fragile. The institutional knowledge will walk out the door. The team will lose trust. Other early employees will wonder if they are next. These are real concerns. They are also, almost always, smaller in reality than they are in the founder’s head at three in the morning.
The Shift That Changes the Conversation
The most important shift in how we think about this is to stop treating it as a performance problem. It is not, in most cases, a performance problem. It is a stage mismatch.
That distinction matters because it changes what the conversation can be. A performance conversation is fundamentally adversarial: you are not meeting expectations; here is what needs to change. A stage conversation is fundamentally collaborative: the company is becoming something different, the role is becoming something different, and we need to figure out together what that means for you.
Sometimes that conversation lands on a different role inside the company — a smaller, deeper, more specialized version of what they were doing, where their original strengths still matter. Sometimes it lands on a graceful exit with real economic recognition for what they built. Sometimes, and this is rarer than founders expect, the person rises to the new job and grows into it. But that last outcome is far more likely when the conversation has happened honestly than when the founder has spent a year hoping it would resolve itself.
The Cost of Not Having the Conversation
When founders avoid this conversation, the cost is rarely paid by the founder alone. It is paid by the team underneath the person, who knows something is off and watches the founder fail to address it. It is paid by the new hires we bring in to work around the problem, who quickly figure out the real situation. It is paid by the person themselves, who is often suffering more than the founder realizes, working harder and harder against a job that no longer fits them, and who would, in many cases, be relieved to have the conversation if it were offered honestly.
And it is paid by the company, in the form of decisions delayed, hires made too slowly, and an organizational drag that becomes harder to reverse the longer it goes on.
What This Looks Like in Practice
The founders who handle this best tend to share a few habits. They stay close enough to the work to notice the shift early, before it has turned into resentment on either side. They separate the question of contribution from the question of fit, and they hold both with honesty. They have the conversation while there is still time for a good outcome, not after they have already mentally moved on. And they recognize that loyalty cuts both ways — that the most loyal thing they can do for someone who helped build the company is to be honest with them about where the company is going and whether the role is still the right one.
The discomfort of this conversation is real. So is the discomfort of not having it. The difference is that one of them ends, and the other compounds.

Here’s My Take
If you are a founder reading this and someone specific comes to mind — this is a signal. Not the cue to act tomorrow, but the cue to stop deferring the question. The question is not whether this person is good. They almost certainly are. The question is whether the job they are doing today is the job the company needs done tomorrow, and whether they are the right person to do it.
That is a question worth answering honestly, while there is still room for the answer to be a good one for everyone.
That’s A Wrap
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© 2026 David Paul Carter. All rights reserved.
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