PE investors routinely underwrite businesses based on their future state. For example, an investment thesis may assume a restaurant company will double its unit count, accelerate franchising, expand geographically, complete acquisitions, improve margins, or become significantly more institutionalized during the hold period. Executive hiring, however, often remains anchored to the present, according to a new article from Wray Executive Search’s Ray Kelley.

“A company identifies its current problems, defines a position around those problems, and searches for an executive who has successfully solved similar challenges before,” he explained. “That approach is logical, and often effective. The problem emerges when the business changes faster than the leadership profile.” READ MORE