Insights
Heidrick & Struggles: Striking the Right Balance in Private Equity Leadership
Heidrick & Struggles surveyed 51 leaders from European private equity firms to glean their primary leadership style. Their research uncovered that senior private equity leaders make up primarily two leadership styles out of a possible eight, suggesting PE firms are more at risk of insular thinking and ultimately, poorer performance.
The study revealed that two-thirds of the private equity leaders had either a "Forecaster" style of leadership or a "Pilot" style, using the study's own framework of eight leadership styles. Forecasters gravitate to critical analysis, unsurprising since many private equity leaders start their careers in banking or consulting. Thus, in many ways, it makes sense that Forecasters would rise to the top in private equity as their leadership style matches the profession—they like data and anticipating trends.
Similarly, the study unveiled that those with a Pilot leadership style tend to be future oriented strategists who perform best in quickly-changing environments, a style that cn flourish in private equity.
In addition to uncovering common leadership styles among the PE leaders, the survey also revealed the rarest leadership styles, pinpointing new opportunities for development and competitive advantage.
Read the complete findings from the Heidrick & Struggles study >
Thought leadership category