Why “Talent First” Is Killing Your PE Growth Strategy
I’ve seen it happen dozens of times. A PE firm closes on a promising portfolio company, and the first order of business is to “upgrade the talent.” New CEO, new head of sales, new VP of Marketing. It feels decisive. It feels like progress.
But here’s the uncomfortable truth: it’s often the fastest way to burn through your hold period with disappointing results.
In my conversations with PE Deal and Operating Partners, 75%+ tell me the same story: “We’ll hire a CEO/GTM leader first. They’ll figure out the strategy, build capabilities, and hit revenue goals all at once.”
What actually happens? Six to twelve months later, we’re looking at missed targets, a burned-out leader, and a frustrated Board wondering where the growth went.
The Half-Built Plane Problem
Picture this scenario: You hire a pilot, hand them a half-built aircraft, and ask them to simultaneously design the flight path, finish assembling the wings, and land safely on schedule. Even Chuck Yeager couldn’t pull that off.
Yet that’s exactly what we do when we lead with talent replacement in PE growth strategies.
A new leader walks into your portfolio company and inherits what I call an “unfinished machine.” They’re expected to:
- Architect the go-to-market strategy
- Build the operational capabilities
- Execute against aggressive targets
- Do it all within compressed PE timelines
The result is predictable: strategy drift, capability gaps, and leadership churn that costs precious time and capital.
What Really Goes Wrong with “Talent First”
When PE firms default to talent-first approaches, I see the same patterns emerge:
Strategy Drift: Leaders are forced to invent the plan while being measured against it. Without clear strategic guardrails, they’re shooting in the dark while the clock ticks.
Capability Gaps Exposed: The new leader quickly discovers that critical infrastructure isn’t ready – CRM systems are outdated, ICP definitions are fuzzy, messaging is inconsistent, and sales processes are broken or nonexistent.
The Short-Tenure Trap: Unrealistic expectations combined with an inadequate foundation lead to quick burnout and churn. Each leadership change restarts the clock and burns more runway.
Momentum Evaporation: Teams lose confidence as they watch leadership turnover accelerate. The organizational energy that should be driving growth instead gets channeled into survival mode.
The Strategy & Capability First Alternative
There’s a better way, and it starts with flipping the sequence. Instead of hiring first and hoping they’ll figure it out, successful PE growth strategies focus on building the foundation before bringing in the talent.
Here’s what “Strategy & Capability First” looks like in practice:
Clear Blueprint Development: Define your GTM model, target segments, and strategic priorities before you write the job description. Your growth strategy should shape the role, not the other way around.
Foundation Building: Invest in the infrastructure that enables success:
- Functional CRM with clean data
- Clear ICP definitions and buyer personas
- Updated messaging and positioning
- Documented sales processes
- KPI tracking and reporting systems
- Sales enablement materials and training
Higher ROI on Talent: When you hire great people into well-designed systems, they can focus on execution and optimization rather than basic infrastructure building. They accelerate instead of scramble.
Reduced Churn and Compounding Growth: Leaders who inherit solid foundations stay longer and deliver better results. You avoid the costly restart cycles that plague talent-first approaches.
Why Sequencing Matters More in PE
In corporate environments, there’s often room for trial and error. You can afford to let a new leader spend their first year getting oriented and building systems. In PE, that luxury doesn’t exist.
Every quarter matters when you’re operating on a 3-5 year hold period. Time is your scarcest resource, and growth strategies that work in corporate rarely translate to PE timelines.
Think about it like building a house. You wouldn’t bring in the interior designer before pouring the foundation and framing the walls. If you did, you’d waste money, time, and goodwill while creating a beautiful design for a structure that can’t support it.
The same principle applies to GTM: your growth strategy and operational foundation should be in place before you bring in the talent to execute it.
The bottom line is simple: in PE, sequencing matters. There’s no luxury of long runways, and defaulting to a “talent first” GTM strategy often burns the three things you can least afford to lose – time, talent, and capital.
If you’re leading a PE-backed business and want to avoid this trap, I’d be happy to share the framework we use to set new leaders up for faster scaling. Reach out to Craig Group.
Brian Gustason is a growth-focused operator & advisor with a proven record of driving accelerated revenue and EBITDA growth for lower-to-middle market B2B services and technology businesses. He specializes in transforming Private Equity portfolio companies through stronger leadership, GTM excellence, team development, and value-creation initiatives leading to higher exit multiples. Follow him on LinkedIn.
