Many of our clients and companies in financial services are facing a changing landscape, with higher interest rates and fierce competition for limited acquisition targets. As a result, they are realizing the need for a fresh approach to developing leaders. Historically, private equity firms and the C-suite have focused mainly on replacing executives of lower performing teams. However, in today's environment, they must make more systematic investments in leadership development. The Challenges: Investing in leadership development requires time and resources, which can clash with the short-term and cost-conscious nature of many companies. But why should this change? Longer Holding Periods and Higher Carrying Costs: Private equity firms and privately owned companies now face increased pressure to drive higher operating returns from their companies due to longer holding periods and higher carrying costs. This necessitates the presence of more effective leaders. The Solution: Companies should adopt a new talent strategy by implementing the following steps: Hire and Empower Human Capital Partners: These partners will focus on talent development, creating an enterprise-level talent strategy, and ensuring leadership development is a priority. Create and Execute a Talent Playbook: Companies should establish a comprehensive playbook for leadership development, providing guidance and resources for company executives and managers. Assess Talent Systematically: During dealmaking, mergers, or transformations, companies should rigorously assess enterprise organizational effectiveness and talent to ensure they are making informed decisions. Encourage Leaders: CEOs and companies should encourage leaders to prioritize talent development and provide the necessary support and resources. By implementing these steps, companies can enhance their ability to develop strong leaders who can drive success in an increasingly competitive landscape. To learn more, ping me via email@example.com. Remember, investing in leadership is a long-term endeavor, and company executives must adapt their talent strategies to thrive in today's rapid changing/dynamic business environment.
Matt Slonaker Founder & CEO of M. Allen