Improving the Effectiveness of Private Equity Owned Companies: How Organization Development Professionals Can Be Helpful.

摘要

Private equity firms control the direction and future of thousands of organizations throughout the world economy. This dissertation examines the challenges of organizational change efforts given the unique ownership structure within U.S.-based private equity-owned portfolio companies. The nature of the capital markets, pressures of the investment fund liquidity requirements, financial orientation of the private equity partners, and potential resistance to change from the portfolio company management teams combine to challenge the opportunity to introduce and sustain efforts to improve organizational effectiveness. Organization Development (OD) professionals have the ability to assist private equity firms and the companies they own with interventions to improve effectiveness. In order to understand how OD professionals can be helpful in this role, the grounded theory research presented here develops a theory of helpfulness based on a deeper understanding of private equity, organizational theories active within the relationships of key private equity players, relevant literature, and thirty-one semi-structured interviews of industry professionals. The results show that in order to be helpful to private equity firms and the companies they own, OD professionals must be prepared to assist with human capital practices during three key phases of ownership: invest, management, and harvest. In support of these conclusions, a model is provided that outlines the three phases of ownership and human capital practices identified as important by the interviewed participants.