Case: Navigating PE relationships and new leadership challenges

Context: A PE-backed travel technology firm in a high-growth phase was provided with a new COO by the PE partners. A short time later there was evidence of a spike in burnout linked to his reporting structure, and the CFO insinuated a desire to leave the company. The CEO was worried about employee well-being and his relationship with the PE firm, as the COO’s management style was negatively impacting engagement and reliability of results.

Challenge: The CEO saw the COO as a bully, damaging team morale and engagement. As the founder, he felt a personal responsibility for his people, but addressing the issue risked straining his relationship with the PE owners, who trusted the COO’s results-orientation.

Approach: We conducted anonymous interviews with both burned-out and non-burned-out employees, as well as with the C-suite and the Chairman of the board, to map the root causes. We implemented an engagement survey based on scientifically validated engagement metrics, correlating the findings to the reporting structure.

Results: While the quantitative results were modest, they were enough to initiate a constructive dialogue with the PE owners. This opened the door for better communication and alignment between the COO, CFO, and CEO, paving the way for improved engagement, healing the scars during the leadership changes, and better organizational health.