Balancing Leadership Tensions in a PE-owned Company

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.