\u201cWhat got you there won\u2019t get you there\u201d. It\u2019s never been more true than right now for private equity backed companies facing economic headwinds. Increasing demands place more pressure on portfolio company leadership teams and, CEOs in particular. They find themselves grappling with mounting financial challenges with increased debt service payments. While basic managerial skills remain necessary, these are no longer sufficient to ensure success in the current market environment.<\/p>\n
At a recent Human Capital conference, successful CEOs, Talent Operating Partners, and Deal Partners cited three competencies that distinguish great private equity CEOs from the rest.<\/p>\n
Listening, Learning and Coachability:<\/strong> CEOs steering their companies through tougher market and financial conditions have to master brand new capabilities. The ability to listen and a willingness to learn are crucial for senior executives to proactively address their own developmental areas. Coachability enables Great CEOs to leverage the collective expertise of their boards and private equity sponsors – key assets for navigating today\u2019s dynamic markets.<\/p>\n Independence and Collaboration<\/strong>: CEOs are expected to lead with decisiveness, yet the traditional command and control approach is outdated in a multi-dimensional business environment with many moving parts. Instead, Great CEOs are encouraged to develop diverse and high-performance teams capable of building on their collective understanding and collaborative decision-making. Effective collaboration, both within the management team and with external stakeholders, including investors and the board, is essential. CEOs who fail to leverage the skills within their team and around them expose their organizations to operational and strategic risk.<\/p>\n