Balancing Leadership Tensions in a PE-owned Company
Leading a profitably growing company requires balancing the inevitable tensions of leadership. A recent Bain and Company study identified three tensions specific to CEOs in PE-owned enterprises—
- Quick thinking vs. systems thinking
- Urgency vs. empathy
- Picking talent vs. developing talent
Bain found that nearly half of the private equity firms it interviewed replaced CEOs running portfolio companies. In 60% of those situations the PE firm hadn’t anticipated making a CEO change when the company was purchased.
Critical changes at that level of leadership are expensive and risky. Explore the insights Bain gained at: The Mistakes PE Firms Make When They Pick CEOs for Portfolio Companies.