It’s been said, “If you want different; move different,” and talent and deal team members know the truth: top team talent reviews of the past aren’t getting the job done. They often don’t have an accurate pulse on the impact of an executive or management team, nor do they shed light on whether portco executives and teams are fit for thesis. Doing a review “right” entails:
- Getting a well-rounded view of the data. Board input alone doesn’t provide a clear view of what you need to know for your key players. Opt for a comprehensive approach – and leverage 360 feedback – to enable more confident decision-making.
- Prioritizing Ease of Administration and Participation: Complexity kills calibration. Use tools that have enough depth to be useful and are straightforward to engage with.
- Facilitating Open Communication: Talent reviews should not be cloak and dagger. Build in mechanisms for constructive feedback to the CEO, management team, and investors.
- Maintaining a Consistent Review Cadence: Calibration is meaningless without action. A consistent review cadence (~every 6-12 months) embeds accountability to ensure that agreed-upon actions happen.
- Planning for Cross-Portfolio Scalability: A process that can be applied across the sponsor’s portfolio enables consistency – a positive for deal team members and portfolio company executives alike.
In today’s dynamic market, risk management matters. Top talent review is a critical tool in both ensuring talent development and in managing the downside risk that a poor performer brings to a portfolio company. By leveraging Ampersand’s Management Impact Index, you can obtain a true snapshot of executive leadership team effectiveness – as well as a clear perspective on how well the current leadership team is performing through the eyes of key stakeholder groups. Let us know when you are interested in learning more at [email protected] – we look forward to the conversation!
