Functional Seat
A functional seat is an agreed responsibility for a part of the business, including its outcomes, decisions, information and continuing work. The seat describes the job before you decide who should hold it.
In iBD, the three functional seats are CFO for finance, CRO for revenue and COO for delivery and margins. The CEO brings their work together into one company plan that serves ownership’s goals.
A title does not explain the whole arrangement
One person may hold several seats. You may deliberately remain the CEO or a functional leader. A company may combine employees, providers and a fractional leader. Describe who leads, who performs the work, who helps and which decisions require approval.
For example, a bookkeeper may maintain accurate transactions while a fractional CFO maintains the forecast and explains financing choices. Both contribute to finance. Their responsibilities need to be explicit so forecasting does not disappear between them.
The seat description gives you the expected work. The function assessment examines the company’s systems and practices. The person assessment examines what an individual can demonstrate. Keep these questions separate when deciding what support is needed.
Use the seat in planning and review
Milestone 19 defines current responsibility. Milestone 20 plans how the arrangement changes; Milestone 21 develops the people carrying it. Keep the current agreement in Your Leadership Team and use it in the existing monthly, quarterly and annual reviews.