Case study
Board Effectiveness With A Portfolio Company Of A Top Ten Global PE Firm
Context
Investment thesis centered on the continued digitalization, category expansion and scaling of the business. The core business creates value by acting as a hub for recruitment activity for a large company through different advertising/engagement models. The next stage in the strategic journey was to evolve the business from a series of service lines into an integrated portal-based recruitment solution.
Keynote Findings
- Chair (Investor) acting as Executive Chair. CEO collusion with Chair at the cost of little to no strategic dialogue with other members of the Board.
- Evolving priorities as result of generative conversation between Chair and CEO meant that organizational priorities were shifting too frequently. Management team was overstretched and unclear on mandate as a consequence.
- Diversity issues: relevance to market/ customer base, divergent opinion and deep expertise in the digitalization agenda lacking from board dialogue.
Recommendations
- Role clarity exercise for Chair and CEO.
- Recommendation for external hire to Chair seat.
- Recruitment of two independent NEDs with digital experience.
