Managing defensive execs in a high risk/stressed opco environment
I joined a PE backed opco that’s on the cusp of distressed (EBITDA/interest at ~1.5x L12M). Health services.
The thing I was NOT prepared for was how defensive leaders are in these environments, and it’s challenging to say the least (scapegoating one another, siloing info, undermining reports, aggressive performance management but then can’t replace with anyone, overall not the best culture). It makes it extremely difficult to do any performance improvement work as everyone is so touchy/defensive.
Everything is viewed as a threat, “not aligned”, extremely territorial and defensive to any mention that their unit “isn’t performing”. You basically can’t have real convos. They just some old Bain playbook from 3 years ago.
It just surprised me as even the c-suite are like this and it’s like no one can take a second to realize the business reality? And those internally who do mention it are then targets…high turnover at all levels.
It’s tiring and I’m wondering if this is normal and/or how anyone handles this? Or is this why you essentially have to have consultants, lenders etc come in to run the place?
Funny thing is many of these leaders were brought in (SVP, c suite) and it seems they didn’t realize it’s a turnaround situation? Most were friends/coworkers of another.
I have expertise from consulting in performance improvement, so Im familiar with various playbooks but it’s so much easier working from the outside than pushing a rock up a hill internally (or worse yet, having a big target on your back because you called out the obvious and are actually trying to performance improve which is literally what they hired my team to do…).