The Emergence of the GTM Operating Partner in Private Equity
Nov 7, 2024
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In this enlightening discussion, Sherri Sklar, CEO of GrowthTera, Kevin McShane, GTM Operating Advisor, and Dan Perry, Resource Partner at Court Square Capital, delve into the evolving role of GTM operating partners in private equity. They examine how economic pressures are reshaping investment strategies and the critical need for operational efficiency. The panel emphasizes trust-building, data-driven decisions, and collaboration as key to enhancing portfolio performance, alongside insights into the pathways for becoming effective operating partners in this dynamic sector.
The increasing significance of GTM Operating Partners in private equity is driven by the need for sustainable organic revenue growth amidst challenging market conditions.
Operating partners must demonstrate cross-functional expertise to enhance credibility and effectively influence overall business performance and operational alignment.
Building trust and rapport with stakeholders is essential for GTM Operating Partners, as it fosters collaboration and enhances the success of portfolio companies.
Deep dives
The Evolving Role of the Go-To Operating Partner
The go-to operating partner role has gained increasing importance within private equity due to the necessity for organic revenue growth. As private equity firms seek to optimize their portfolios, the introduction of this role aims to address the need for efficient growth strategies. These operating partners are expected to cultivate leadership across various functional areas, establishing themselves as valuable assets capable of influencing overall business performance. With shifting market dynamics, there is a pressing need for these professionals to demonstrate cross-functional expertise, thereby enhancing their credibility within the organization.
Challenges Impacting Private Equity Growth
Recent economic factors, such as rising inflation and interest rates, have significantly challenged private equity growth strategies. These economic pressures result in decreased revenue generation potential, making it imperative for private equity firms to adapt their operational tactics continuously. Reports indicate that traditional methods for revenue growth are yielding diminishing returns, necessitating a focus on more sustainable and efficient approaches. The increasing complexity of market conditions has therefore solidified the necessity for expert guidance from go-to operating partners.
Strategic Focus on Efficient Growth
In today's context, the emphasis has shifted toward achieving profitable, efficient growth rather than simply increasing sales headcount. Operating partners are expected to fine-tune sales strategies, enhancing both efficiency and effectiveness within the business framework. By aligning operational practices with strategic initiatives, these partners can help portfolio companies increase their value and optimize resource utilization. This refined approach encourages a critical evaluation of current practices and positions firms for long-term success amidst challenging market conditions.
The Interplay of Strategy and Execution
Successful execution in private equity hinges on aligning strategic objectives with operational imperatives. Operating partners often play a crucial role in both developing actionable strategies and ensuring their effective implementation within the organization. They assist in identifying target markets and refining buyer personas to maximize the impact of go-to-market efforts. This dual focus is essential in navigating the complexities of operational improvement while maintaining alignment across various departments within the company.
Building Trust and Relationships Across Stakeholders
The ability to build trust and rapport with key stakeholders is a vital competency for go-to operating partners, as they often operate without direct authority. They must engage CEOs and management teams in a manner that fosters collaboration and alignment on strategic objectives. By leveraging their experience and demonstrating humility, these partners can effectively bridge communication gaps and create a cohesive operating environment. Ultimately, rapport with leadership and team members is crucial, as it directly influences the overall performance and success of the portfolio company.
Join us for a panel discussion on the evolution of the GTM (Go-to-Market) Operating Partner role in private equity, and why it’s becoming essential in today’s market. Joe Gravino, Principal, GTM Search Practice Lead at FALCON, guest hosts a robust panel of GTM-focused operating partners - Sherri Sklar, CEO of GrowthTera and GTM Advisor at Edison Partners, Kevin McShane, GTM Operating Advisor, Five Elms, and Dan Perry, Resource Partner, Sales Excellence at Court Square Capital Partners.
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This episode is sponsored by Centrae, the revenue growth platform for private equity.
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