Agility / Evidence-based Management and their role in improving returns in the Private Equity Ecosystem

Yuval Yeret
8 min readSep 27, 2022

In this article, I’ll explore the need for and the attributes of an agile business operating system related to Private Equity (PE) portfolio companies. It hopefully helps leaders of such companies and PE professionals focused on the operations side expand their perspective on what “Agile” and “Agility” mean in their world and how they can help them improve returns realized in their investments.

Dealing with common business challenges through agility

I’ve been helping companies improve their operations for more than a decade now. A repeating pattern is where a very successful company is facing growing pains affecting its ability to scale to the next level. Some examples of the challenges I’m called in to help with:

  • Losing the Ability to Innovate You often see companies that grow successfully to the point where it seems their ability to innovate stalls. When you look deeper, you see them struggling to cope with growing technical complexity, coordination costs across teams, and leadership bottlenecks. This affects product innovation as well as GTM innovation and other key business processes.
  • Time to Market / Time to Learn — The more complex the organization, the more time it takes to deliver value or close a learning loop. And in an environment of volatility, uncertainty, complexity, and ambiguity, this hurts your ability to compete. The bigger you are, the more you resemble the incumbents you once disrupted. Everywhere you look — product development or how the company runs its key business processes, there’s more and more friction and slowdown.
  • Losing Key Talent — Talented people are looking for an environment where they can thrive — where they have the right level of autonomy, where they work on interesting problems with minimum friction and headaches, and where they can see the value and connect to a worthwhile mission/purpose. As companies grow, the way they operate becomes less and less attractive to talented people. They feel bottlenecked, stuck, and mired with more and more legacy and start looking for greener fields.

Business/Organizational Agility — The New Business Operating System

Addressing these challenges by improving our ability to innovate and deliver, solving complex…

--

--

Yuval Yeret

Business Agility Coach | SAFe Fellow and SPCT | Scrum.org PST | CTO and Partner @ AgileSparks