Key Takeaways
  • Prioritization, defined by a sponsor’s skill at focusing their time and resources on the priorities that matter most, is one of PE-CXO’s Nine Dimensions of Governance Fit® that enables executive success. 
 
  • A sponsor’s ability to balance rigor with a sharp focus on the tasks that drive clear, exit-aligned priorities is critical to driving value and maintaining a positive sponsor-management partnership.  
 
  • Executives can drive better prioritization and productivity in their portfolio companies through transparent communication and fast-paced decision making.  

PE-CXO’s recent report, The Top 50 Private Equity Firms for Executives of 2024, revealed that 91% of executives would not return to work for a sponsor who failed to demonstrate an ability to effectively prioritize key issues. 

Achieving effective prioritization — defined by strong agreement between sponsors and management teams on which priorities are important to ensure CXOs are consistently working toward objectives that drive exit valuations — demands a diverse set of skills and behaviors from sponsors, including: 

  • Listening to executive input and understanding their top objectives for the business 
  • Aligning priorities with exit-focused goals 
  • Facilitating clear and consistent communication channels that enable all parties to voice their perspectives transparently and efficiently  

Executives must not only understand what effective prioritization looks like from sponsors but be able to tactfully drive it for themselves through focused leadership and transparent communication.  

Why Effective Prioritization Matters 

“Shifting priorities or not providing consistent support are frustrating, as they can disrupt project timelines and goals. When sponsors do not discern between the urgency of requests, it dilutes the effectiveness of the team and spreads resources too thin across competing priorities.”

— Anonymous Board Member, PE-CXO Top 50 Survey  

Operating in the private equity-backed world means navigating limited time and resources. This is especially true today, when high levels of uncer...