Chief performance officers can be a secret ingredient for private equity success. Here’s why

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Share this email Share this email on LinkedIn   Share this email on Twitter   Share this email on Facebook   AN ARTICLE A DAY, PICKED BY OUR EDITORS   Edited by Stephanie d'Arc Taylor   Editor, Southern California Does your company have a people person? Most organizations are only as good as their people, and this can be particularly true in the world of private equity, where investors often make bets on management and its ability to change a company's destiny. Larger private equity firms seem to have gotten the memo: according to a recent McKinsey survey, half of PE firms with more than $2 billion in assets under management had a Chief Performance Officer, whereas only two out of 13 smaller firms employed a CPO. For operations teams of any size, though, not having a CPO may represent a missed opportunity: CPOs can confer on their organizations a talent edge in an industry where human capital makes a crucial difference, write partner Claudy Jules and senior partner Jason Phillips in a new article. Click here to read more on why CPOs can be a secret ingredient for private equity success—and tips on how to hire one. Chief performance officers can be a secret ingredient for private equity success. Here's why Operating groups gain an edge when they add a CPO, but these roles are still rare in private equity firms. That should change. Understand the role   Quote of the day "In order to play the game of poker or play the game of life well, you have to quit in some situations, particularly those situations where other people might not." —Annie Duke, a decision-making strategist and former professional poker player, on sunk cost and strategic quitting in a recent Author Talks interview Chart of the day See today's chart ALSO NEW Keeping the semiconductor industry on the path to net zero Growing demand for semiconductors means industry emissions are likely to increase. Semiconductor companies are making sustainability commitments, but more is needed to achieve net zero. Benefit from collaboration   Tracking diversity, equity, and inclusion data in private markets Institutional investors and private equity firms can implement some basic but crucial best practices to measure progress on diversity, equity, and inclusion. Go beyond the metrics   Halftime for the K–12 stimulus: How are districts faring? Halfway through the federal stimulus window, districts have yet to spend the bulk of funds. Meanwhile, learning loss and mental-health concerns are escalating. Can districts rise to the challenge? Read our insights   Follow our thinking Share these insights Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too. Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here. This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the Daily Read newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007