Over 70% of CEO’s are replaced during the holding period – one more indication of today’s challenging value creation plans and competitive deal markets. However, the cost of replacing executives is high. It’s not just the direct cost of recruiting. It’s is also the cost of lost time and uncertainty in the organisation that hit IRR. Beyond this, top management talent is increasingly sensitive to a sponsor’s track record of management change-outs.
This month’s InFocus features excerpts of a recent Humatica Organisational Excellence Breakfast Dialogue in London with twenty PE practitioners on how to better support management teams to reduce the cost of turnover and improve IRR. For the complete documentation please contact marketing@humatica.com
This is the first article in a three-part series on designing and implementing a fit-for-purpose Target Operating Model. The series provides a practical roadmap for…
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Liquidity has become the defining constraint in today’s private equity markets. Where timing and financial engineering once drove distributions, funds are now facing longer holding…
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Private equity investors and executive teams rightly focus on operating model design as a core lever for value creation. The right structure can accelerate growth,…
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