Private Equity Industry Practice

Private Equity Industry Practice

Private Equity Industry Practice

Private Equity investors face several unique human capital challenges when identifying and growing investments. FMG Leading has a strong track record of partnering with investors to identify the human capital strategies most critical to achieving their investment thesis, accelerating value creation, and positioning them for a strong exit.

There are many ways to invest in an organization’s people resources. Some can have a dramatic effect on both the pace and substance of value creation, while others can become a significant distraction to the organization. We partner with investors in PE firms of all sizes to ensure their human capital strategies align with enterprise strategy, maximizing shareholder value and driving growth across the portfolio.

In our experience, many Private Equity investors have well-honed instincts around assessing people. And yet the majority of investors would also say that their most time-consuming challenges are people-related. Over several decades of working within portfolio companies, FMG Leading has been able to bring measurement tools and processes to institutionalize some of this instinct to help firms become truly competitive around talent.

Private Equity Industry Practice

We accelerate value creation through a focus on the six primary drivers of human capital performance:

 
  • Change agility

  • Execution

  • Strategic alignment

  • Leadership quality

  • Engagement

  • Culture and identity

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Our private equity solutions target three key phases of the investment lifecycle: 

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Diligence

During the pre-acquisition phase, we help investors uncover deal-relevant issues and opportunities around:

  • Leader quality

  • Human capital strategy

Leader Quality

Our leader quality work in the diligence phase creates meaningful interactions that de-risk instincts and lead to more data-driven conclusions. We focus on founders, CEOs, and other critical roles, helping investors ensure they put together the optimal structure for the deal and for the organization post-transaction.

Our solutions include:

  • Leadership team observation and insights:

    • Founder, CEO & other critical leaders

    • Facilitated conversations to clarify existing strengths and opportunities

  • Pre-close executive assessments

Human Capital Strategy

During the diligence phase, we partner either with the deal team or directly or with the target acquisition to understand the human capital consideration and constraints – opportunities, capabilities, and issues. We act in an advisory role, bringing a deep level of insight to human capital challenges and opportunities that could influence the deal. Challenges and opportunities such as the impact of existing talent and human resource infrastructure.

Our solutions include:

  • Interviews, observation and assessment of talent/human resources leaders and systems

  • Data analysis – as an outsourced member of the deal team, we evaluate and organize extracted data on the people side of the organization

Read Less

Private Equity Page 2 (Onboarding ).png

Onboarding

We help new portfolio companies gain immediate traction and improve their ability to scale by building:

  • Strategic alignment

  • Leader quality

  • Culture and identity

Strategic Alignment

Different and distinct from a market analysis or traditional strategy formulation, our goal in the onboarding phase is to build alignment in the top 3 layers of organizational leadership. Our ‘strategy workout’ process drills down on existing strategy to ensure it is clear, actionable and cascaded through organization so that employees at all levels can see how they contribute to success. We also assist organizations to create a strategic narrative that can be cascaded throughout the organization at all levels.

Our solutions include:

  • Strategy workout

    • A resource-based strategic planning tool, our “Strategy Workout” focuses on capabilities, identifying the building blocks and how they come together to deliver results. Includes an organizational structure overview and audit, recommended modification and simplification, and ongoing advisory.

  • Clarification of UVP, target market/customer, and required capabilities to deliver

  • Executive team advisory and strategic alignment

Leadership Quality

Our leadership quality work during the onboarding phase begins by establishing a customized ‘denominator’ from which organizations can define and build the leaders they need to create success in their unique environment. We then partner with portfolio companies to improve leader quality, capacity and skill.

Our solutions include:

  • Strategic advising with CEO

    • Our CEO advisory work focuses on building the skills needed to effectively navigate the relationship with the investor and the board. We help set communication expectations, and help CEOs guide their organizations through the realities and cultural implications of rapid growth.

  • Executive assessment, coaching and development plans to ensure leaders can operate in an environment of changed and increased expectations.  We help ensure the investor and the management team establish rapport, trust and a protocol to ensure a healthy working relationship over time. 

  • Pre-hire CEO assessments  

    • We build a success profile and evaluate candidates against the specific needs of the portfolio company.

  • Executive team alignment and development 

    • We help senior leaders build trust, candor, role clarity, communication norms, and management processes. We help the executive team focus on what matters most and ensure they are functioning at their very best.

Culture and Identity

Our work during the onboarding phase helps organizations assess and evaluate their culture and identity to uncover strategic misalignment that could inhibit growth. We help executives understand how culture impacts performance, and partner with organizations to refresh their culture to support their current business strategy.

 Our solutions include:

  • Culture audits and assessments, to determine the level of alignment between culture and strategy

  • Culture insights workshop, to help executives understand the role of culture in shaping performance

  • Leadership and annual meeting design and consultation, to ensure these events act as cultural lynchpins and have the maximum impact

Read Less

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Growth

During the hold period, we ensure sustainable growth and enhance exit readiness by maintaining a focus on:

  • Execution

  • Change Agility

  • Engagement

Execution

During the growth phase, our work focuses on building senior leadership alignment that enables quick decision-making and effective execution. We help teams gain a sense of purpose, trust and determination that allows them to deliver rapid results and execute strategy. 

Our solutions include:

  • Education around the impact on others when creating an enhanced culture of execution. How people adapt adopt and adjust to a culture of heightened expectations.

  • Leadership fundamentals training and development. Helping leaders identify and focus on the things that drive value creation and matter most to growth.

  • Integrated design approaches. We help organizations see how their investments in human capital performance connect to create exponential results.

Change Agility

Our change agility work during the growth phase improves the speed and accuracy by which an organization can adapt, change direction, and implement new initiatives and strategic priorities. We provide education and training focused on the skills needed to lead change, and understanding what people need during times of change. 

Our solutions include:

  • Individual change leadership, connecting change to a story while considering absorption rates, staging and levering and prioritization. We help leaders understand how the pieces fit together, enabling them to shift from functional initiatives to enterprise initiatives.  

  • Change planning advisory. We help our clients design a custom roadmap and with quarterly reviews to ensure momentum and progress. Often this support is rolled-into an ongoing executive team advisory relationship in which we are continuously aligning strategy and human capital, and ensuring the change effort is effectively supported.

Engagement

During the growth phase, we help organizations maintain momentum by defining and enhancing the way leaders interact and inspire employees at all levels and job functions. Our engagement work unlocks incremental effort and enhances employee loyalty, reducing turnover, improving efficiency, and contributing directly to the bottom line. We understand the impact and evolution of engagement efforts.  We help organizations interpret their surveys, cascade the results, and train their leaders to build action plans that create change, pull through and accountability.

Our solutions include:

  • Annual baseline engagement assessments and surveys

  • Engagement survey advisory and consultation

  • Leadership and annual meeting design and advisory, to ensure these events act as cultural lynchpins that drive engagement, commitment and results.

Read Less

Leader Quality

Our leader quality work in the diligence phase creates meaningful interactions that de-risk instincts and lead to more data-driven conclusions. We focus on founders, CEOs, and other critical roles, helping investors ensure they put together the optimal structure for the deal and for the organization post-transaction.

Our solutions include:

  • Leadership team observation and insights:

    • Founder, CEO & other critical leaders

    • Facilitated conversations to clarify existing strengths and opportunities

  • Pre-close executive assessments

Human Capital Strategy

During the diligence phase, we partner either with the deal team or directly or with the target acquisition to understand the human capital consideration and constraints – opportunities, capabilities, and issues. We act in an advisory role, bringing a deep level of insight to human capital challenges and opportunities that could influence the deal. Challenges and opportunities such as the impact of existing talent and human resource infrastructure.

Our solutions include:

  • Interviews, observation and assessment of talent/human resources leaders and systems

  • Data analysis – as an outsourced member of the deal team, we evaluate and organize extracted data on the people side of the organization

    Read Less


Strategic Alignment

Different and distinct from a market analysis or traditional strategy formulation, our goal in the onboarding phase is to build alignment in the top 3 layers of organizational leadership. Our ‘strategy workout’ process drills down on existing strategy to ensure it is clear, actionable and cascaded through organization so that employees at all levels can see how they contribute to success. We also assist organizations to create a strategic narrative that can be cascaded throughout the organization at all levels.

Our solutions include:

  • Strategy workout

    • A resource-based strategic planning tool, our “Strategy Workout” focuses on capabilities, identifying the building blocks and how they come together to deliver results. Includes an organizational structure overview and audit, recommended modification and simplification, and ongoing advisory.

  • Clarification of UVP, target market/customer, and required capabilities to deliver

  • Executive team advisory and strategic alignment

Leadership Quality

Our leadership quality work during the onboarding phase begins by establishing a customized ‘denominator’ from which organizations can define and build the leaders they need to create success in their unique environment. We then partner with portfolio companies to improve leader quality, capacity and skill.

Our solutions include:

  • Strategic advising with CEO

    • Our CEO advisory work focuses on building the skills needed to effectively navigate the relationship with the investor and the board. We help set communication expectations, and help CEOs guide their organizations through the realities and cultural implications of rapid growth.

  • Executive assessment, coaching and development plans to ensure leaders can operate in an environment of changed and increased expectations.  We help ensure the investor and the management team establish rapport, trust and a protocol to ensure a healthy working relationship over time. 

  • Pre-hire CEO assessments  

    • We build a success profile and evaluate candidates against the specific needs of the portfolio company.

  • Executive team alignment and development 

    • We help senior leaders build trust, candor, role clarity, communication norms, and management processes. We help the executive team focus on what matters most and ensure they are functioning at their very best.

Culture and Identity

Our work during the onboarding phase helps organizations assess and evaluate their culture and identity to uncover strategic misalignment that could inhibit growth. We help executives understand how culture impacts performance, and partner with organizations to refresh their culture to support their current business strategy.

 Our solutions include:

  • Culture audits and assessments, to determine the level of alignment between culture and strategy

  • Culture insights workshop, to help executives understand the role of culture in shaping performance

  • Leadership and annual meeting design and consultation, to ensure these events act as cultural lynchpins and have the maximum impact

    Read Less


Execution

During the growth phase, our work focuses on building senior leadership alignment that enables quick decision-making and effective execution. We help teams gain a sense of purpose, trust and determination that allows them to deliver rapid results and execute strategy. 

Our solutions include:

  • Education around the impact on others when creating an enhanced culture of execution. How people adapt, adopt, and adjust to a culture of heightened expectations.

  • Leadership fundamentals training and development. Helping leaders identify and focus on the things that drive value creation and matter most to growth.

  • Integrated design approaches. We help organizations see how their investments in human capital performance connect to create exponential results.

Change Agility

Our change agility work during the growth phase improves the speed and accuracy by which an organization can adapt, change direction, and implement new initiatives and strategic priorities. We provide education and training focused on the skills needed to lead change, and understanding what people need during times of change. 

Our solutions include:

  • Individual change leadership, connecting change to a story while considering absorption rates, staging and levering and prioritization. We help leaders understand how the pieces fit together, enabling them to shift from functional initiatives to enterprise initiatives.  

  • Change planning advisory. We help our clients design a custom roadmap and with quarterly reviews to ensure momentum and progress. Often this support is rolled-into an ongoing executive team advisory relationship in which we are continuously aligning strategy and human capital, and ensuring the change effort is effectively supported.

Engagement

During the growth phase, we help organizations maintain momentum by defining and enhancing the way leaders interact and inspire employees at all levels and job functions. Our engagement work unlocks incremental effort and enhances employee loyalty, reducing turnover, improving efficiency, and contributing directly to the bottom line. We understand the impact and evolution of engagement efforts.  We help organizations interpret their surveys, cascade the results, and train their leaders to build action plans that create change, pull through and accountability.

Our solutions include:

  • Annual baseline engagement assessments and surveys

  • Engagement survey advisory and consultation

  • Leadership and annual meeting design and advisory, to ensure these events act as cultural lynchpins that drive engagement, commitment and results.

    Read Less

Contact the Practice Leader

MaryCay Durrant

In her role as Principal of FMG Leading’s private equity practice, MaryCay focuses on optimizing human capital performance and organizational culture to accelerate value creation. She brings of wealth of professional services experience, with particular expertise in guiding the leader and team aspects of evolving traditional businesses. MaryCay helps PE-backed executives respond to new paradigms, navigate founder/CEO transitions and build the strategic alignment required to maximize velocity and drive sustainable results.