Carl Cox on portfolio company strategy and driving leading indicators

Introducing Carl Cox

Carl J. Cox is a Business growth strategy expert, podcast host, and the CEO of 40 Strategy, where he helps CEOs scale with strategic excellence. He is also the author of Lost At CEO: An Entrepreneur's Guide To Strategy. The book reveals a uniquely different approach to strategies that have the power to transform any business that has struggled with stale strategic retreats, failed initiatives, and stalled-out growth. 

What You Will Learn:

The Power of Strategic Planning in Private Equity

How to Design a World-Class Strategic Plan

Ways to Move From Lagging to Leading Indicators

Breakdown:

[00:00] Introduction

[01:50] The Mistakes PE Firms Make with Their Portfolio Companies

[02:49] Marrying People, Processes, and Systems in a Firm

[04:14] From Lagging Indicators to Leading Indicators

[06:47] Indicators That Prove You're Headed in the Right Direction

[08:53] Strategies and How Often to Track Your Them

[12:10] The Concept of Strategic Accountability

[15:29] What a World-Class Strategy Looks Like

[19:25] Motivation For Writing the Book

[23:30] What Carl Likes and Dislikes About Private Equity

[28:57] What Carl Watches, Reads, and Listens To 

[33:02] Parting Thoughts 

The Foundations of a Strategic Plan in Private Equity

Ready to scale your private equity firm the right way? Well, it's very simple. All you need is a world-class strategic plan and the accountability to get it done. According to Carl, all these can be achieved by focusing on only three things:

1. Initiatives that Create Value. As a PE firm, you must focus on the initiatives that create the most value. Highlight all potential strategic initiatives, then rank them according to feasibility, and double down on the ones that have a greater organizational impact. To improve your chances of success, Carl recommends focusing on at most three strategic plans at a time.
2. The Right KPIs. Choose KPIs that are leading indicators, not lagging indicators. Stop focusing on the outcome and instead focus on the behaviors that lead to them. A solid strategic plan should have metrics for behaviors and actions that can be tracked and monitored regularly. 
3. Accountability. PE firms should make accountability a core part of their business strategy. Keep your people accountable. Don't take your eye off the ball because people will likely fall back into old habits. As a leader, start by setting clear deadlines, establishing roles, and performing regular check-ins. The more successful PE firms ensure everyone stays on track and feels more accountable for their work.

How to Carl Cox

Carl's email - CarlJCox@40strategy.com

Carl's LinkedIn, 40strategy.com, Lost At CEO: An Entrepreneur's Guide To Strategy
by Carl J. Cox 

Thank you for tuning in!

To get the newest Private Equity episodes, you can subscribe on iTunes or Spotify here.
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.