Every leader stands to benefit from the opportunity to regularly review with outsiders what s/he seeks to do, what has been done to do it, what has happened and what has been learned so far, and what s/he plans to do next.
It is harder to set up, operate, and benefit from outside help than it may first appear. Click the featured image above for a slide presentation of lessons learned and best practices that, if followed, will lead to improved performance and growth thanks to help from Accountability Board Members and Subject Matter Experts.
This post is based on remarks IntelliVen CEO, Peter DiGiammarino made about what Private Equity Operations partners do for portfolio CEOs at a National Private Equity International Operating Partners Forum Panel Discussionin Sentry Center, New York City.
A view from the portfolio company CEO on:
Management autonomy and sponsor inclusion; striking the right balance.
Engaging with the General Partner over the life of the transaction.
Beyond getting deals done and setting up financing, there are three things an operations professional counts on from his/her private equity investor:
Governance– i.e., provide a consistent point of accountability to report on: what we said we would do, what we did, what happened, what we learned, and what we plan to do next; we count on you to ask good questions to push up our thinking and give us your best advice.
Access– i.e., help secure the money, people, partners, clients, best practices, knowledge, etc. needed to be successful.
A team is a group of people working together to achieve a common goal. If everyone sinks or swims together the investor team and the operating team aggregate to form the deal team.
The CEO’s job is to get the most out of all available resources to achieve the best possible result in the shortest possible time. Those on the investor team are there for the CEO to draw-in and leverage as best s/he can just like any other resource. Why then does it often seem that the investor team and the operating team are competing rather than working together?Continue reading What a PE-owned CEO has to do when things go awry.→