The Secret to Becoming a Successful Private Equity-backed Leader
In my 30-plus years in the private equity industry, I have been exposed to scores of different business leaders. Most of these leaders have had the requisite intellect and experience to be successful, yet many have failed to live up to their full potential. Sometimes this has undoubtedly been due to external circumstances (the economy, regulation, natural disaster, etc.), but more frequently it has been the result of psychological factors. In particular, leaders that are too concerned with earning the approval of others tend to price decision-making risk incorrectly, resulting in suboptimal choices and often, decision paralysis. These leaders become too dependent on their private equity partners to guide and support them, which further erodes their self-confidence over time. The best leaders, by contrast, seem to have their identity secured, thereby providing them the freedom to make decisions without the fear of failure.