How Private Equity Firms Hire CEOs

equity.jpgFounder and Chairman of Green Peak Partners, J.P. Flaum, recently conducted a research study with Jeffrey Cohn of DHR International to determine how successful private equity firms avoid the extremely costly mistake of a bad CEO selection.  After collecting data from the managing partners of 32 PE firms, the authors concluded that (1) experience is overrated, (2) leadership is about building high performing teams, (3) urgency is as important as empathy, (4) perseverance is a key attribute, and (5) trustworthiness is critical.
 
The following article first appeared in the June 2016 issue of Harvard Business Review.

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Economists Get It: Personality Predicts Performance

Provided by Guest Blogger, Allison Howell

The financial costs of personnel decisions are well documented. For each poor hiring decision, companies can lose, on average, $25,000-$50,000 – even more if you take into account lost productivity, employee morale, and client relationships. Less well understood, however, is the economic impact of personality differences among good hires.

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Trust At First Sight

Trust_THUMB_200_v3-1.jpgWhy empathy, not necessarily transparency, may be the key to making a trustworthy first impression

It’s your first day at your new job—an outside hire brought in to replace the outgoing manager at a mid-sized paper company. You’ve never met your new employees, most of whom have been working there more than a decade. How do you introduce yourself?

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Believe Me, Folks

Build_TrustWith both candidates scoring record unfavorable ratings, the next president faces an uphill battle to earn the public’s trust in office.

“Believe me.” For anyone who’s been following the election, this is a familiar phrase. According to an article in the Boston Globe, presidential candidate Donald Trump used that phrase more than 30 times (at a rate 56 times higher than his opponents) during the Republican primary debates, and has continued to lean on it moving into the general election, even managing to pepper it into his acceptance speech at the Republican National Convention. Fitting, considering Politifact, a non-profit political fact checking website, rated only 14% of his claims on the campaign trail to be true or mostly true.

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