Many organizations are realizing the benefit of private equity investment to accelerate growth and opportunity. PE firms often bring a wealth of knowledge, best practices, and highly tuned process improvements to drive companies to the “next transaction”. But what about your company’s culture? What about the long-term mission? Every leader I know with PE backing is working to strike a balance between short-term gains and long-term sustainability.
I don’t have all of the answers, but I do believe a few fundamentals are important if you’re a CEO or executive team in this situation…
→ You know (and have built) your culture. Continue making decisions based on your core values.
→ CEOs - you are the “decider” when it comes to how PE folks interact, engage, and drive processes down into your team. It’s not necessarily a fun job, but it’s crucial to maintain balance (and it’s yours).
→ Decisions made today during the value creation process are most likely focused on setting you up for the next 3-5 years. While this is essential, don’t forget to ask “what about 10 years down the road?” and “how do we protect what’s special about us and how we do things?”
→ Sometimes (ok, maybe a lot of times), you have more experience than the PE folks. Not to say you should disregard their advice, but take it in moderation. You know your industry, customers, and unique competitive advantage. Don’t let anyone tell you differently.
→ Yes, it’s about the money. But more importantly, it’s about the company and the value you provide to customers and employees.
Money fuels growth. Culture fuels longevity. Great leaders never confuse the two.