Best But Never Final: Private Equity's Pursuit of Excellence

When Things Go Wrong, Part II: Taking Action When Performance Slips

17 snips
Oct 14, 2025
Hosts dive deep into diagnosing portfolio underperformance, clarifying the difference between temporary market challenges and structural issues. They discuss actionable strategies for immediate revenue growth via pricing, marketing, and expert sales hires. Cost-reduction tips include process efficiency and Lean Six Sigma methods. Liquidating cash efficiently through receivables and inventory management is emphasized, alongside guidance on the careful injection of capital to address struggles. A comprehensive playbook for navigating tough financial climates emerges.
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ADVICE

Use Specialists For Process And Spend

  • Use Lean Six Sigma and The Goal to optimize constraints and processes.
  • Hire specialist spend-takeout teams for direct and indirect procurement savings.
INSIGHT

Avoid The Sales–Ops Whipsaw

  • Sales and operations misalignment creates a damaging whipsaw on capacity and service.
  • Level-loading sales and ops and acknowledging constraints prevents oscillating performance.
ADVICE

Hunt Working Capital For Cash

  • Manage cash by focusing on receivables, inventory, and payables immediately.
  • Use factoring, inventory segmentation, and negotiated trade terms to free liquidity fast.
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