Hiring and retaining the best possible management leadership team is central to the success of any business. As a private equity business owner you also need to partner with people who share the same values as you in terms of business objectives, ethics and ESG. You will also need to grow and adapt that team as the business being led grows and changes so the team is optimally equipped to continue succeeding. It’s crucial to aim to have the best manager possible in every leadership position across your entire portfolio. Before starting any hiring process, ask yourself what your business needs and generate a list of requirements for a manager in the position. Here are a few general elements to consider when hiring for management positions.
– Accountability and Transparency: A senior manager should feel and act like an owner. In particular, reporting transparently when something doesn’t go as planned is the key to then finding solutions in partnership with colleagues and shareholders. In addition, when leaders demonstrate accountability for their own goals and work they will also foster that same quality into employees who report to them. Employees that understand the importance of taking responsibility for their actions help to create a great company.
– Exceptional Communication: Communication is vital, especially in a management position. Look for a manager that can stay on top of what needs to get done and communicate it clearly to employees and owners. They will be able to get everyone on their team working towards the same objective, with a clear understanding of what that objective is.
– Effective Decision Making: All managers have to make important decisions regularly. Make sure you hire someone that can take in a lot of information and make tough choices in a short amount of time. Making tough decisions for the team keeps the business moving and prevents stagnation.
– Focus: It’s important for managers to prioritise. All companies have a limited amount of management resources focusing those resources where they can have the biggest impact is crucial.
– Intelligence: Intelligence does matter. The data driving business decisions is becoming exponentially richer and more complex and the pace of change and competition faster. Leaders have to have the raw intelligence to understand complex issues.
– Rationality: Leaders must be rational and not driven by emotion or ego. Even great intellects can make terrible mistakes when irrational motives creep into their decision making. The ability to lead is a form of objectivity about the world but also about yourself.
Finding a manager that’s the right fit for your business can be a challenge. However, if you have a clearly defined set of qualities you’re looking for, it will make the job easier.