The Therapy of Operating Partners

If you were sick, would you go to see an experienced, practicing physician, or to someone who is a brilliant student of medical science but who has seldom touched a patient?

When your business hits a critical inflection point, you don’t just want a brilliant diagnosis and prescription. You want the experienced hands of a practitioner who has dealt with this problem before, executed treatment, and adjusted to the many unseen problems that typically appear only after therapy begins. That’s what differentiates typical Consultants from Operating Partners- an ability to see more deeply into the problems and to quickly adjust the treatment based upon the patient’s response.

Of course, the other approach a leader might take to a key inflection point is to replace key executives. But the need to move quickly to address a critical problem is at odds with the goal of finding the right, long-term hire. What’s more, new executives need time to acclimate and to negotiate the political structure of their new organization. This finding, hiring, and familiarizing only delays crucial decision-making, stalls the actions of staff who don’t want to get on the wrong side of the new executive, and introduces uncertainty among all. Then too, the costs associated with hiring new executives, including severance packages for outgoing leaders and recruitment fees, can strain already limited budgets.

What, then, is the business leader to do when a critical inflection point appears?

Operating Partners offer a strategic alternative that combines the best that consultants have to offer with that offered by executive hires- providing a company with both the brilliance of outside perspective needed to properly diagnose, and the experienced leadership needed to execute the therapy in the immediate term. Unlike consultants, who typically provide recommendations, Operating Partners are involved in executing strategies. Their hands-on, executive experience allows them to provide practical and immediately applicable advice and to guide companies through complex operational challenges. They work closely with the company’s management team to implement those changes, optimize operations, and drive growth initiatives. This hands-on approach ensures that strategies are not only sound but also practical and executable. Importantly, this involvement in execution helps bridge the gap between strategy formulation and actual implementation.

The inflection points that might suggest the need to engage an Operating Partner are many: key economic changes, shifting customer and market dynamics, a disappointing product launch, a platform initiative that hasn’t panned out, stalled growth, financial imbalance, organizational or performance issues, access to capital, or other factors. In these and other circumstances, Operating Partners may offer key advantages over other remedies:

Cost Efficiency

Operating partners are hired on a contractual, often a fractional basis making them significantly more affordable than full-time executives. This cost efficiency allows companies to allocate their limited resources more effectively and buys the time needed to recruit new executives if necessary.

Flexibility and Speed

These professionals can be brought on board quickly and start making an impact immediately. Their experience in turnaround situations means they can quickly diagnose problems, propose solutions, and implement changes without needing a lengthy acclimation period.

Reduced Risk

Hiring an Operating Partner mitigates the risk associated with a full-time executive hire. If the fit is not right, or if the company's needs evolve, the engagement can be easily adjusted or terminated without the complexities involved in parting ways with a permanent executive.

Targeted Expertise

Operating partners offer specialized skills tailored to the company's immediate needs. Whether refining strategic direction, implementing operational excellence, or improving financial performance, these professionals can focus energy on the specific areas that need urgent attention.

The experienced practitioner sees more than just the signs and symptoms. He/she perceives all the complexities of what is wrong and knows how to treat it for this particular patient. Such practitioners were once the brilliant student but grew to now operate with the wisdom of long experience.

That’s a comfort to any patient.

Partner, Mike Curtin