claude-code-arcane 1.0.0

package/skills/executive-mentor/references/crisis_playbook.md

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+# Crisis Playbook — When Things Go Really Wrong
+
+Crises aren't random. They fall into predictable categories. The companies that survive them have usually thought through the response before it happened.
+
+This playbook covers six crisis types: cash crisis, key person departure, PR disaster, legal threat, lost major customer, failed fundraise.
+
+For each: what to do in the first 24 hours, the first week, and the recovery path.
+
+---
+
+## Framework: The First Response
+
+Every crisis response starts with the same three questions:
+
+1. **What is the actual scope?** (Not the fear-amplified version — the real facts)
+2. **Who needs to know, and in what order?** (Don't broadcast before you understand the problem)
+3. **What's the first stabilizing action?** (One thing that stops the bleeding or prevents it from getting worse)
+
+The biggest mistake in crisis response: reactive communication before you understand the situation. The second biggest: waiting too long to communicate once you do.
+
+---
+
+## Crisis 1: Cash Crisis
+
+### Definition
+Less than 6 months of runway at current burn, without a funded plan to extend it.
+
+### First 24 Hours
+- **Get exact numbers.** Not approximate — exact. Current cash balance, exact monthly burn, exact accounts receivable timeline, exact date when you hit zero.
+- **Stop discretionary spending immediately.** Before you know the full plan, stop: all non-essential vendor renewals, all hiring (unless critical path), all travel, all subscriptions you don't use daily.
+- **Call your board chair.** Not the full board — the chair, one-on-one. This conversation: "Here's the situation. Here's what I know. Here's what I'm doing today. I want to schedule an emergency board call for [48 hours from now]."
+- **Do not tell the broader team yet.** Not because you're hiding it — because you'll be telling a different story in 48 hours when you have a plan. "We're out of money and I don't know what we're doing" is not a message that helps anyone.
+
+### First Week
+- **Model three scenarios.** (1) Raise now — how long and at what terms? (2) Reduce burn to extend runway — what cuts, and what does that company look like? (3) Bridge from existing investors — is that realistic?
+- **Emergency board meeting.** Present the three scenarios. Make a recommendation. Come with a plan, not just a problem.
+- **Start the raise immediately if that's the path.** Cash crises give you no luxury of preparation time. Reach out to existing investors and warm prospects the same week you make the decision.
+- **If cutting, do it once and do it right.** See hard_things.md — layoffs section. Dragging it out is worse.
+- **Communicate to team within one week.** After you have a plan. Honest, direct, with clarity on what it means for their jobs. "We have N months of runway. Here's what we're doing. Here's what this means for you."
+
+### Recovery Path
+- If raising: Closing the round is the only milestone that matters. Assign someone to own diligence data, legal docs, and investor follow-up. This is now the CEO's full-time job.
+- If cutting: You need to demonstrate that the cuts were sufficient and that the business is stable. Three straight months of burn at or below plan is the proof point.
+- The narrative question: "Why did this happen and why won't it happen again?" You will be asked this in the next fundraise. Have a direct, honest answer.
+
+### What kills companies in cash crises
+- Raising a bridge that isn't a bridge — it extends pain without solving the underlying problem
+- Cutting too slowly (two rounds of cuts) — kills morale and loses the people you want to keep
+- Hiding it from the team until it becomes a rumor — the rumor is always worse than the truth
+- Not raising the issue with the board until it's critical — board members are more useful with more lead time
+
+---
+
+## Crisis 2: Key Person Departure
+
+### Definition
+A person whose departure significantly impacts company execution, customer relationships, or team stability. Usually C-level or a critical technical/commercial lead.
+
+### First 24 Hours
+- **Clarify what "departure" means.** Resignation? Fired? Mutual agreement? The situation determines the response.
+- **Assess the actual impact.** What does this person own that isn't covered? Who on the team will be most affected? Do any customers have primary relationships with this person?
+- **Secure institutional knowledge.** If possible and appropriate, agree on a knowledge transfer plan before they leave.
+- **Notify the board chair.** Same day. Same rule: facts only, no spin.
+- **Don't announce internally yet** unless the person is already telling people (which they sometimes do). Get ahead of it by a few hours if possible.
+
+### First Week
+- **Control the narrative internally.** All-hands or department meeting within 2–3 days. Honest: "Name is leaving. Here's what I can share about why. Here's the plan." Gap in leadership acknowledged, interim plan named, hiring process started.
+- **Handle customer relationships.** Identify the top 5-10 customers with a relationship with this person. CEO or another senior person reaches out personally. "I want to make sure you hear from me directly..."
+- **Announce interim ownership.** Don't leave reporting lines and responsibilities ambiguous. Even a temporary assignment provides stability.
+- **Start the search.** Don't wait. The bench is always thinner than you think and searches take 3–4 months.
+
+### Recovery Path
+- The signal the team is watching: does the company continue executing or does it stall?
+- Keep shipping. Keep hitting targets. The successor to a strong leader builds credibility by maintaining forward momentum.
+- Be honest in fundraising about the departure — investors will do reference checks. "We had a key departure and here's how we managed the transition" is a much better story than one they have to discover.
+
+---
+
+## Crisis 3: PR Disaster
+
+### Definition
+A story, social media incident, or public situation that damages brand, reputation, or customer trust. Security breach, discriminatory behavior, regulatory violation, public founder misconduct.
+
+### First 24 Hours
+- **Establish facts before you communicate.** What actually happened? What data was affected? Who is affected? What is the extent?
+- **Activate legal counsel immediately.** Before any external communication. Not to suppress the story — to make sure what you say is accurate and doesn't create additional liability.
+- **Designate one spokesperson.** Only one person speaks to media, posts on social. Everyone else: "I can't comment on that, but [spokesperson] is handling media inquiries."
+- **Acknowledge, don't stonewall.** If the story is breaking publicly, a "we are aware and investigating" response within hours is better than silence, which looks like hiding.
+
+### First Week
+- **Communicate to affected parties first.** If it's a data breach: affected customers before media. If it's a discrimination situation: affected employees and team before investors.
+- **Draft a public statement.** Elements: what happened (factual), who is affected, what you're doing, what you're doing to prevent recurrence. No corporate-speak. No deflection. No passive voice ("mistakes were made").
+- **Proactively update investors.** They'll hear about it anyway. Hearing from you first, with context, is materially better.
+- **Execute the response plan.** Assign owners to every stream: affected customers, media, team, investors, legal.
+
+### Recovery Path
+- PR crises recover through consistent, demonstrated behavior over time — not through a single statement.
+- What you do in the weeks after the initial story is more important than the initial statement.
+- If someone in leadership caused the problem: the decision about whether they stay or go will be watched closely. Protecting the wrong person damages recovery.
+- Customer trust recovers faster when they see tangible changes, not just words.
+
+---
+
+## Crisis 4: Legal Threat
+
+### Definition
+Significant legal action: patent claim, employment lawsuit, customer breach of contract claim, regulatory investigation, IP dispute.
+
+### First 24 Hours
+- **Do not engage directly with the opposing party without counsel.** Nothing — no calls, no emails, no messages.
+- **Get legal counsel on the call today.** Not next week. If you have outside counsel, call them. If you don't have a relationship, get one immediately.
+- **Document what you know.** The sequence of events, relevant contracts, communications. Don't delete or alter anything — that can become a separate problem.
+- **Tell the board chair.** Same day. Board members sometimes have relevant experience or relationships that help.
+
+### First Week
+- **Assess exposure.** With counsel: what's the realistic worst case? What's the likely case? What's the cost range?
+- **Determine response strategy.** Fight, settle, or ignore (only for clearly frivolous claims with no risk). Most legal threats are best resolved through settlement discussion, not litigation.
+- **Evaluate business impact.** Does this affect fundraising? Customer relationships? Employment contracts? Scope the full impact.
+- **Communication plan.** Employees? Customers? Investors? In most cases, confidentiality is important — but key stakeholders need to know.
+
+### Recovery Path
+- Most legal threats resolve. They resolve faster and cheaper when addressed directly and early.
+- Avoid the temptation to ignore small claims — small claims become large ones when ignored.
+- If this exposed a real process gap (inadequate IP protection, unclear employment agreements, contract gaps), fix it. The litigation is the signal; the underlying gap is the problem.
+
+---
+
+## Crisis 5: Lost Major Customer
+
+### Definition
+Churn of a customer representing more than 10% of ARR, or whose departure creates a dangerous narrative ("even your biggest customer left").
+
+### First 24 Hours
+- **Get the real reason.** Not the polite exit reason — the real one. Ask directly: "I want to understand what we could have done differently. Not to change the decision — to learn." Sometimes they'll tell you.
+- **Assess financial impact.** Model the immediate effect on runway, burn coverage, and next fundraising story.
+- **Notify the board chair.** If this is >10% ARR, same day. No surprises at board meeting.
+- **Do not panic-announce internally.** You need a plan before you tell the team.
+
+### First Week
+- **Understand the signal.** Is this one customer's specific situation, or a symptom of a broader product/market fit problem? The answer changes the response completely.
+- **Address the team.** The team will notice a major logo disappear. Name it, explain what you know, explain what's changing.
+- **Accelerate pipeline.** If this creates a gap to target, which deals can be accelerated? What expansion opportunities are there with existing customers?
+- **Review other at-risk customers.** Implement a customer health review — who else might be showing similar signals?
+
+### Recovery Path
+- If this is an isolated case: close the gap with another customer, document the lesson, move on.
+- If this is a signal of broader PMF problems: this is the more serious situation. What are customers getting from you that they can't get elsewhere? Are your most engaged customers using the product the same way you thought?
+- The fundraising question: "We lost [major customer]. Why?" Have a direct, honest answer that includes what you changed as a result.
+
+---
+
+## Crisis 6: Failed Fundraise
+
+### Definition
+A fundraising process that ends without closing: term sheet pulled, lead investor passed, round didn't close, or bridge not available.
+
+### First 24 Hours
+- **Assess actual runway.** How much time do you have at current burn?
+- **Identify where the process broke.** Was it valuation? Team? Product? Market? The "why" determines the path.
+- **Immediately convene board.** You need their help and their network. A failed raise is not something to manage quietly.
+- **Do not tell the team yet.** You need a plan first. "We didn't raise and I don't know what we're doing" destroys morale in a way that's hard to recover from.
+
+### First Week
+- **Model survival scenarios.** At current burn: how long? At 50% reduced burn: how long? What does the reduced-burn company look like? Is it sustainable?
+- **Identify specific reasons the raise failed.** Investor feedback, even if uncomfortable. "The market doesn't understand our vision" is not useful. "Three investors said the unit economics weren't believable" is useful.
+- **Evaluate alternative paths.** Revenue-based financing, venture debt, strategic investment, customer advance payments, bridge from existing investors, acqui-hire.
+- **Communicate to team.** Within one week. With a plan. "Here's what we're doing. Here's what this means for the team."
+
+### Recovery Path
+- The raise failed for reasons. Fix the reasons. If it was valuation: you may need to lower expectations. If it was market: you may need to refocus. If it was metrics: you need to improve metrics before the next attempt.
+- Failed raises are more common than founders discuss publicly. Most companies that eventually succeed have had at least one.
+- The companies that recover from failed fundraises usually do so by extending runway aggressively (cutting), finding a lead from outside their normal network, or changing something material about the business.
+- **Do not do bridge rounds as avoidance.** A bridge that extends your runway 3 months to a problem you haven't fixed is not a solution. Only bridge if you have a specific, credible path to a successful close.

package/skills/executive-mentor/references/hard_things.md

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+# Hard Things — Decision Frameworks for the Calls Nobody Wants to Make
+
+Firing people. Laying off teams. Pivoting when you've raised money on the old direction. Telling a co-founder it's over. Shutting down a product.
+
+This isn't a framework for feeling better about hard calls. It's a framework for making them correctly.
+
+---
+
+## Part 1: Firing
+
+### When to Fire Someone
+
+Most leaders wait too long. By the time they act, everyone else on the team already knows the problem person isn't working out. The team watches the leader, waiting to see if they'll act.
+
+**Fire when:**
+- Performance isn't improving after clear, direct, documented feedback
+- The person is a culture or values problem, not just a skills problem
+- You find yourself routing around them (giving their work to others, excluding them from important discussions)
+- The team is being damaged by having them there
+- You wouldn't hire them today for this role
+
+**The question to ask:** "If I could wave a magic wand and this person just stopped coming to work, would I be relieved or would I miss them?" If relieved — you already know.
+
+**The hidden test:** "Would I enthusiastically recommend this person to a friend's company for this exact role?" If no, what does that tell you?
+
+### The Warning Signs You're Avoiding the Decision
+
+- You've been "working on it" for more than 3 months
+- You're hoping they'll leave on their own
+- You're giving them feedback that's softer than what you actually think
+- You're planning to "deal with it after the quarter"
+- Other team members have started asking you about it
+
+### Before Firing: The Due Diligence
+
+Have you been **direct** — not hinted, not soft-pedaled, but explicitly said "your performance is not meeting the standard required for this role and your job is at risk"?
+
+Have you given them **a fair chance to improve** with clear criteria for what success looks like?
+
+Have you checked whether this is a **fit problem** (wrong role for their skills) vs a **performance problem** (not executing in a role they're capable of)?
+
+Have you considered whether this is **your failure** — bad hire, bad onboarding, bad management — and whether another manager would get different results?
+
+This isn't to talk yourself out of it. It's to make sure you can stand behind the decision.
+
+### How to Fire Someone
+
+**The conversation:**
+
+Do it in person. Start of the week (not Friday — that's cruel). Private meeting. 30 minutes max.
+
+Three sentences:
+1. "I have difficult news — today is your last day."
+2. "The reason is [one clear sentence — not a list of grievances]."
+3. "Here's what the transition looks like [severance, references, timeline]."
+
+**Do not:**
+- Soften it so much that the person doesn't understand what's happening
+- Give a performance review at the end ("you're really good at X but...")
+- Apologize excessively (once is appropriate; more makes it about you)
+- Leave open questions about whether this is final (it is)
+
+**The question they'll ask:** "Why now?" Be ready for this. Have a direct answer.
+
+**What to say to the team:** Same day. "I want to let you know that [Name] is no longer with the company. I can't share details, but I want to be transparent that this was a decision we made, not something they chose. Their last day is today." That's it. Don't litigate. Don't share reasons.
+
+### Severance
+
+Be generous. Not because you have to — because it's the right thing to do and it protects the culture. The team watches how you treat people when they leave.
+
+For executives: 2–3 months standard, more if they've been there a long time.
+For individual contributors: 2–4 weeks per year of service is reasonable.
+
+**Reference:** Only confirm dates and title (standard practice). If you genuinely believe they'd be good somewhere else, offer a more substantive reference. Don't damage their career because the fit wasn't right.
+
+---
+
+## Part 2: Layoffs
+
+### The First Question: Is This the Right Move?
+
+Layoffs are sometimes the right call. But they're also sometimes an avoidance tactic — avoiding harder decisions about business model, spending discipline, or strategic direction.
+
+Before proceeding, be clear on what problem you're solving:
+
+- **Extending runway:** How many months does this buy? Is that enough?
+- **Restructuring:** Are you changing the direction of the company, not just the headcount?
+- **Cost cutting without strategic change:** This is usually a mistake — you lose talent, damage culture, and face the same problem 6 months later.
+
+**The math:** At your current burn, you need to cut \_\_% to extend runway from \_\_ months to \_\_ months. That math should drive the decision, not a "feels about right" number.
+
+### Cut Once, Cut Deep
+
+The worst outcome is two rounds of layoffs. After the first, the people who stay are already thinking about leaving. A second round converts "scared" to "gone."
+
+If you're going to do this, do it once and do it to a level that solves the problem for 18+ months. Psychological safety matters more than any individual cost saving.
+
+### Deciding Who to Let Go
+
+This is the hardest part. A framework:
+
+**By role:** Does the company need this function at current stage? If you're cutting a whole team or capability, it's cleaner, more defensible, and recovers faster.
+
+**By performance:** If cutting across teams, higher performers stay. This is the moment where the "we have no B players" culture claim is tested.
+
+**By span of work:** Which work is critical path to the strategy you're executing now? Everything else is a candidate.
+
+**The veto question:** "Would I fight to keep this person if they said they were leaving?" If yes, they're safe. If no, they're a candidate.
+
+### The Layoff Conversation
+
+**Preparation:**
+- Legal review first. In Germany: Betriebsrat, social selection, proper notice periods. In the US: WARN Act for 50+ employees. Do not skip this.
+- Have severance paperwork ready before the conversation
+- Have IT ready to revoke access (dignity: after the conversation, not during)
+
+**The conversation:**
+- Private. Direct.
+- "We're restructuring the company and your role is being eliminated."
+- Don't blame the person. Don't say "we had to make hard choices" three times. Say it once and move on.
+- Explain severance, timeline, references clearly.
+- Answer questions. "I don't know" is acceptable for some questions. "I can't tell you" is not.
+
+**All-hands same day:**
+- You, live, as soon as individual conversations are done
+- Be honest about why and what it means for the company
+- Answer hard questions. Don't hide behind PR language.
+- Acknowledge that this is hard and that you're responsible for the decisions that led here
+
+### Survivor Guilt
+
+The people who didn't get cut will feel: relieved, guilty, scared, and angry — often all four. Don't underestimate this.
+
+Within 48 hours of the layoff:
+- Talk to every team lead individually
+- Hold a team meeting for each department
+- Be available for hard conversations
+
+The question everyone is silently asking: "Am I next?" Answer it directly, even if you can't promise the future: "I don't plan any further cuts. Here's what would have to be true for that to change."
+
+---
+
+## Part 3: Pivoting
+
+### Signals That It's Time to Pivot
+
+- Product-market fit isn't materializing despite iteration
+- Growth requires heroic sales effort on every deal
+- The customers who love you are not the customers you expected
+- You find a problem you can solve well that's adjacent to what you're doing
+- The market you targeted is smaller than you thought
+
+**The danger signal:** You're pivoting to run from failure, not toward opportunity. Pivots pulled by evidence of a better path work. Pivots pushed by exhaustion with the current path fail differently.
+
+### How to Think About the Pivot
+
+Define what you're keeping vs. what you're changing:
+- **Team**: usually keeping — the team is the asset
+- **Technology**: partially keeping — usually can be reoriented
+- **Customers**: depends — some will follow, some won't
+- **Vision**: the long-term vision often survives; the near-term path changes
+- **Brand**: sometimes requires a rename
+
+The cleanest pivots have a clear answer to: "Why are we better positioned to win at the new thing than anyone else?"
+
+### Telling the Board You're Pivoting
+
+Do not surprise the board in a board meeting. Have the conversation individually with key directors first.
+
+What to communicate:
+1. What changed — the new data or insight that's driving this
+2. What you're moving away from and why
+3. What you're moving to and why you can win there
+4. What this means for fundraising timeline and strategy
+5. What you need from them
+
+Board members hate two things: surprises and not being consulted. Give them both the information and the opportunity to contribute.
+
+### Telling Customers You're Pivoting
+
+Be direct. Don't spin it as "we're expanding our focus." If you're killing something they use, tell them clearly, with enough notice for them to plan.
+
+What customers need to know:
+- What's changing and when
+- What happens to their data / integrations / workflows
+- Who their contact is through the transition
+- What alternatives exist
+
+Customers who feel respected through a hard change sometimes become your biggest advocates. Customers who feel deceived become your loudest critics.
+
+---
+
+## Part 4: Co-Founder Conflicts
+
+### The Types of Conflict
+
+**Values/direction conflict:** You disagree fundamentally about what the company should be. This is existential and usually doesn't resolve with more conversation.
+
+**Performance conflict:** One co-founder isn't pulling their weight. This is hard but more tractable — it's addressable with clarity.
+
+**Role/scope conflict:** Unclear ownership causing friction. This is often fixable.
+
+### The Conversation You're Not Having
+
+Most co-founder conflicts fester because nobody says the real thing out loud.
+
+The real thing might be: "I don't think you're growing into what this company needs." Or: "I don't agree with the direction you're pushing us and I don't feel heard." Or: "I'm doing 70% of the work and we have equal equity."
+
+Say the real thing. Not in anger. Clearly, directly, with respect.
+
+### When It's Not Working
+
+Signs the co-founder relationship is unsalvageable:
+- You've had the real conversation and nothing changed
+- You don't trust their judgment anymore
+- You've stopped including them in important decisions
+- You're telling people (investors, team) a different story than what's true
+- The team has started choosing sides
+
+### The Separation
+
+Options in rough order of impact:
+1. **Role change** — they move to a different function where they can succeed
+2. **Advisor role** — they step out of operations, keep some equity, maintain relationship
+3. **Full exit** — they leave the company
+
+For any separation: legal counsel first. Cap table, vesting, IP assignment, competition clauses — all need to be addressed. Don't make handshake deals.
+
+How you treat the departing co-founder tells the team, the investors, and the market who you are.
+
+---
+
+## Part 5: Shutting Down a Product Line
+
+### When to Kill It
+
+- Revenue doesn't justify the cost (including the opportunity cost of what the team could be building instead)
+- It's pulling the company in a strategic direction you're not committed to
+- It requires resources disproportionate to its potential
+- Supporting it is making the rest of the product worse
+
+**The question to ask:** "If we launched this today knowing what we know, would we build it?" If no, that's your answer.
+
+### What You're Protecting
+
+The customers who use it. They trusted you with their workflow. Give them:
+- Clear timeline (90 days minimum for anything with integration dependencies)
+- Migration path to alternatives or your other products
+- Data export
+- A person they can contact with questions
+
+### Internal Communication
+
+The team that built it feels the loss personally. Acknowledge it. "This product represents real work and real care. Shutting it down is not a judgment of the team — it's a judgment about fit with where the company is going."
+
+If team members are being reassigned, not let go — make that clear immediately. The fear of job loss will dominate every other concern until you address it.