Insiders Council Unleash Go-to-Market Value Creation

Alexander Group’s Private Equity Insiders Council, made up of leading PE, dove into the strategic levers that power the realization of go-to-market (GTM) value creation initiatives. Guided by industry luminaries—Matt Gallagher (Hg Capital), Preston McKenzie (General Atlantic), Kush Tulsidas (One Rock) and John McCracken (Warburg Pincus)—the group defined the framework for harnessing value creation levers.

1. Begin by accurately diagnosing the problem and identifying the right corrective measures.
2. Prioritize foundational initiatives involving people, process and technology.
3. Accelerate execution by aligning talent and initiatives.
4. Create an environment of discipline, active monitoring and communication, and decisive action to underpin the highest impact go-to-market value creation plans.

The following outlines the council’s guidance for successful execution:

Diagnose Problems and Opportunities Early and Effectively

The revenue growth clock is already ticking during diligence. Pulling go-to-market value creation levers starts with properly identifying the few that are most feasible and have the greatest impact. In today’s climate, most leaders favor practical over aspirational improvements.

Start with Foundational Initiatives to Help the Business Scale

These often include establishing baseline revenue operations, along with process and technology. The Revenue Operations function is the enabler that paves the way for value creation initiatives, including setting up new routes to market, breaking into new segments or geos, and adding headcount.

Talent – Find and Nurture Internal Talent, Strategically Acquire from Outside

Bringing in new talent is risky, time consuming, and difficult due to lack of available talent in the market. Get to know the layers of leadership within the business. Find enterprising and emerging leaders and nurture and invest behind them. Giving high performers an opportunity to own growth initiatives can accelerate careers and create the next generation of strategic go-to-market leaders.

An organization’s talent needs depend on its stage of growth, culture and management approach. Missing the target on talent can have long-term impact. Mitigate the risk by starting the process during diligence.

Follow Through on Go-to-Market Initiatives with Communication, Discipline and Accountability

Get CEO and deal team alignment early – ensure these groups are on the same page with the path to value creation. Gain commitment and funding and map out timelines and accountabilities.

Be high touch on select programs versus light touch on many – Go-to-market is just one of many areas competing for organizational energy and resources. Go hard at the critical few (ICP and segmentation, demand generation, differentiated coverage, pricing, revenue operations, or others) and emphasize outcomes.

Be disciplined, minimize distractions – new value creation opportunities will arise, but they need to be fully vetted and weighed against in-flight initiatives. Organizational energy and resources are finite. Avoid chasing marginal or low probability bets.

Regularly discuss progress – Value creation initiatives should be covered during board and other management team meetings. Highlight progress and impact. Show proof points including early indicators of success.

Take decisive action – Abandon, accelerate or adapt. As one community member shared, “Private Equity is not a place for learning on the job.”

Interested in learning more on the levers to unleash GTM value creation? Alexander Group’s Private Equity Insiders Council provides an outlet for deal and operating partners to discuss contemporary issues and key imperatives for portfolio companies to leverage go-to-market growth drivers for valuation improvement.