MCLEAN, Virginia, May 10, 2018
Jim Corey presents results at PEI Operating Partners Forum in London
MCLEAN, Virginia, May 10, 2018 /PRNewswire/ -- During March and April, Blue Ridge Partners surveyed CEOs of private equity owned portfolio companies on a variety of topics including i) their business priorities for 2018/2019, ii) CEO perceptions of the contributions made by operating partners/senior advisors and iii) suggestions for making the CEO/operating partner relationship most productive. We also asked operating partners a similar set of questions to compare responses with those of the CEOs.
Insights gained from analyzing the surveys were reported by Jim Corey, Managing Partner of Blue Ridge Partners at the PEI Operating Partner Forum in London on May 8. In assessing the relationships and expectations between the CEOs and operating partners, there was strong alignment on business improvement priorities for 2018/2019. However, the survey highlighted the existence of friction in the relationship. For instance, CEOs felt that some operating partners worked on their own agenda without proper coordination with the CEO while operating partners felt that some CEOs are too defensive in insisting the company is doing everything right. In addition, the operating partners believed they added significantly more value to the business than perceived by the CEOs.
Both CEOs and operating partners offered meaningful advice for making their working relationship more productive. Many of the responses followed a common theme: trust is essential, the operating partners should empower the senior leadership team and be mindful not to undermine them, and there should be clear rules of engagement and communication. The complete survey report can be read here.
"This survey of CEOs and operating partners provides many useful perspectives on the friction that exists in their relationship," said Corey. "The key insight however, is not the existence of this friction but the list of principles and behaviors that bring strength and mutual support to this relationship."
About Blue Ridge Partners
Blue Ridge Partners is a management consulting firm exclusively focused on helping companies accelerate profitable revenue growth. Our clients include over 100 private equity firms – both during deal evaluation/ due diligence and post-acquisition - and Fortune 500 and upper middle market companies. We help enhance their strategic understanding of markets and customers, deepen and expand their customer relationships and improve marketing and sales performance.
David Schutzman, 1-203-550-8551, email@example.com