Private Equity firms typically purchase two types of companies:
1) Promising Companies Poised for Growth and Expansion
2) Fixer Uppers Badly in Need of Repair
To successfully grow either type of company three components are required
1) The Right strategy
2) Capital
3) Experienced Managers
The High Performance Company requires three specific characteristics to set itself apart from the average and from just being “good.” A great company must have the following three elements:
•Clear Vision
•High Performing Teams
•A Disciplined Culture
This blog discusses high performing teams in more detail. We all hear that a company’s biggest asset is its people; and that is an absolutely, unequivocally true statement. Yet most companies fail to capture the exact notion of what that statement means, and do not know how to maximize the efficiency of their human capital in a productive and balanced way. Thomas Jefferson said, “If I had a universe to choose from, I could not change one of my associates to my better satisfaction.” He definitely had a high performing team!
A high performing team is one where its members are passionate about what they do. They have clarity in their roles, there is a great amount of cohesiveness between the members, and there is an understanding of the need to live a balanced life. When all these characteristics are blended together, the outcomes of their decisions propel the company to a higher level. This type of team arrives at decisions more quickly; they debate passionately, trust each other deeply and hold each other accountable for performance.