YSC’s role was to conduct post-deal due diligence on a European portfolio company, aligning the individual and collective insights around the firm’s ability to deliver the investment thesis and create value for LPs. Inherent in this was taking a developmental approach to the due diligence: assessing each Executive Board member to manage risk but also to support them to be the best versions of themselves.

Background

With an 85% stake in the business, our client adopts a high intensity approach to managing their investments. In 2015 our client acquired a carve-out from a global business. This portfolio company provides international employee and executive compensation plan services for today’s global enterprise, supporting clients with participants across Europe, Asia, Australia and America. Headquartered in Europe, the portfolio company focuses on providing customised end-to-end solutions, from funding instruments, to administration and execution.

Challenge

The portfolio company operates in a fast-paced and rapidly evolving context, with an increase in competition, regulation and short term timeframe for investment ahead of exit. The internal context was also significant: new Executives being on-boarded to business critical roles, CEO and CFO turnover and carving out the operation to as standalone operating model.

Solution

YSC initiated the project with a detailed scoping session. Working back from the investment thesis, YSC worked with the investor to understand the value drivers for the business, purpose, strategy and operating model. A read of each individual’s role relative to this, and the current team dynamic was also explored.

YSC then engaged with each individual Executive for an in-depth developmental conversation (EDP). This assessment allowed the YSC consultant to calibrate the individual against the value drivers and investment thesis, flagging areas of alignment and risk. Moreover, it also supported the leader to better understand their leadership style, strengths and developments. Following this, each Executive then had a follow up coaching session to focus their efforts in a more impactful manner, creating a strategic development plan.

Using the data gathered from the EDPs, a detailed aggregate insights deck was produced and was structured around the value drivers of the portfolio company. This led to a two staged debrief with the Chairman and CEO. The first session focused on a deep dive into each Executive’s fit: their fit for the role, fit for the investment thesis, fit for the PE dynamic, fit for the team. The second session considered the team dynamic and a review of organisational design relative to the investment thesis.

A final stage of this project involved a team session for the Executive Board members. Here, YSC used our High Performing Teams model to align the individuals and drive a more effective, cadent and high performance dynamic around the investment and business strategy.

Feedback from the Chairman

“This intervention was most beneficial and the assessments are powerful tools for the CEO and I as we grapple with the development of the team and the business”.