The Private Equity Podcast, by Raw Selection

Shifting from Founder-Led to Data-Driven Decision Making in Private Equity with Jeff Wigle

Feb 18, 2025

Jeff Wigle, Managing Director at Banyan Capital Partners, shares his journey from being an accountant to leading private equity transformations. He discusses the crucial shift from founder-led to data-driven decision-making, emphasizing technology's role and the necessity of cultural alignment. Jeff also highlights common pitfalls in private equity, such as rushing transformations and the importance of long-term strategies. He reflects on the significance of the right talent in key roles and the evolving landscape of integrating AI in decision-making processes.

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Intro

00:00 • 4min

Navigating Investment Pitfalls in Private Equity

04:05 • 9min

Navigating Business Challenges Through Data-Driven Insights

13:26 • 3min

Navigating Data-Driven Change in Private Equity

16:44 • 7min

Navigating the AI Shift in Private Equity

23:42 • 2min

Navigating Technology in Private Equity

26:00 • 7min

Scaling Up

How a Few Companies Make It… and Why the Rest Don’t

Verne Harnish

This book, written by Verne Harnish, provides a comprehensive framework for scaling businesses. It focuses on the four major decision areas every company must get right: People, Strategy, Execution, and Cash. The book includes the updated One-Page Strategic Plan and the Rockefeller Habits Checklist, which have been used by over 40,000 firms to scale successfully. Harnish draws on decades of experience advising CEOs and executives, emphasizing the importance of routines, effective meetings, and clear communication to drive business growth and maintain organizational health[1][3][4].

Switch

How to Change Things When Change Is Hard

Chip Heath

Dan Heath

In 'Switch', Chip and Dan Heath explore why making lasting changes is difficult due to the conflict between the rational mind and the emotional mind. They present a framework for successful change by uniting these two minds, drawing on decades of research in psychology, sociology, and other fields. The book provides compelling examples of how everyday people have achieved dramatic results by following this pattern, whether in personal, organizational, or societal contexts.

Good to Great

Why Some Companies Make the Leap... and Others Don't

Jim Collins

In 'Good to Great,' Jim Collins and his research team investigate why some companies achieve long-term greatness while others do not. The book identifies key concepts such as Level 5 Leadership, the Hedgehog Concept, a Culture of Discipline, and the Flywheel Effect. These principles are derived from a comprehensive study comparing companies that made the leap to greatness with those that did not. The research highlights that greatness is not primarily a function of circumstance but rather a result of conscious choice and discipline. The book provides practical insights and case studies to help businesses and leaders understand and apply these principles to achieve sustained greatness.

The Five Dysfunctions of a Team

A Leadership Fable

Patrick Lencioni

This book explores the fundamental causes of team failure and organizational politics through a narrative about a fictional company, DecisionTech, Inc. It outlines five dysfunctions: absence of trust, fear of conflict, lack of commitment, avoidance of accountability, and inattention to results. The book provides practical advice and real-world examples to help teams overcome these dysfunctions and become high-performing teams.

Grit

The Power of Passion and Perseverance

Angela Duckworth

In this book, Angela Duckworth presents a compelling argument that success is driven more by grit, a fusion of relentless passion and perseverance, than by talent. She explains what grit is, how to identify and develop it, and how it can be grown through stages such as developing interests, consistent practice, finding a pro-social purpose, and cultivating optimism. The book is structured in three parts: explaining what grit is and why it matters, how to grow grit from the inside out, and how to grow grit from the outside in, targeting parents, coaches, teachers, and organizational leaders. Duckworth supports her arguments with personal stories, historical insights, and interviews with high achievers from various fields.

Welcome to The Private Equity Podcast, by Raw Selection. Today’s guest is Jeff Wigle, Managing Director at Banyan Capital Partners, a lower-to-middle market private equity firm based in Canada. Jeff shares insights on transitioning portfolio companies from founder-led to data-driven decision-making, leveraging technology, and managing cultural change during these shifts.

Breakdown:

[00:00] Jeff Wigle discusses his background, Banyan Capital Partners, and his experience transitioning portfolio companies to data-driven decision-making

[00:29] Jeff’s background from accountant at Ernst & Young to private equity leader, including serving as CEO of a portfolio company at age 31

[02:26] Building an evergreen private equity model with the importance of long-term holds and avoiding rushed investment theses

[04:22] Common private equity mistakes including rushing transformations, breaking culture, and short-sighted strategies

[05:48] Banyan’s approach focusing on long-term value creation, rebuilding foundations, and avoiding premature integrations or expansions

[07:31] Lessons from being a CEO with the critical importance of having the right people in the right roles

[08:52] Characteristics of top performers including clarity, consistency, transparency, and alignment with investor and business goals

[10:16] Transitioning to data-driven decision-making by addressing founder-led systems and building scalable processes for growth

[11:43] Challenges of upgrading systems with balancing inward focus during upgrades with market opportunities

[12:42] Investing in systems and data by upgrading technology to generate actionable insights and improve decision-making

[14:09] Starting with manual processes by using limited data to identify profit drivers and inefficiencies before implementing systems

[16:05] Managing resistance to change by evolving culture carefully with executive buy-in to avoid breaking businesses

[17:41] Leveraging IT consultants and internal resources with strategies for implementing and managing technology upgrades

[20:59] Early steps with artificial intelligence including using AI for coding fixes, dynamic pricing, and operational efficiencies

[23:22] AI and dynamic pricing with AI to manage large customer bases and product catalogs efficiently

[24:50] Staying competitive with AI and how larger businesses lead adoption, but smaller firms must act to avoid falling behind

[27:44] AI at the private equity level with AI for research and data compilation, but still validating results manually

[29:10] Recommended reading Scaling Up by Vern Harnish, Grit, Good to Great, The Five Dysfunctions of a Team, and Switch

[31:00] Podcast recommendations Business Breakdowns, In Good Company, and Michael Lewis’s podcast

[32:26] Connect with Jeff via the Banyan Capital Partners website for contact details

[32:55] Closing thoughts with Alex Rawlings thanking Jeff for sharing his insights on data-driven decision-making and cultural change in private equity

To be added to the book waitlist, you can email alex.offer@raw-selection.com

Thank you for tuning in!

Connect with Jeff on LinkedIn here.

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Lastly, if you have any feedback on the podcast or want to reach out to Alex with any questions, send an email to alex.rawlings@raw-selection.com