Why holistic Leadership Team assessment is critical for scale ups
In the fast-paced environment of scale ups, realising value through growth and transformation depends on a leadership team that can effectively align with the growth strategy. Traditional assessments of leadership focus on individual technical and functional expertise. However, today's successful strategies require a broader approach—one that evaluates not only individual and collective capabilities but also the values, beliefs, and team dynamics that define how a leadership team operates and executes.
1. Individual and Collective Leadership Capabilities
Rapid growth demands leaders who are adept not only in their functional areas but also in strategic and people leadership. This includes proficiency in people management, change leadership, and decision-making. Growth stage, often equity backed, companies that excel often emphasise this holistic approach to leadership, hiring those who can guide their teams through complex development and change, while ensuring collective growth of the leadership team.
Leaders who demonstrate and cultivate strong people leadership, for example, are more likely to create engaged, motivated teams, which is critical during periods of rapid growth and change.
2. Values, Beliefs, and Behaviours
Assessing leaders’ values, beliefs, and behaviours is crucial to ensure they align with the evolving organisation's desired culture. Leaders must role model the behaviours they expect in others. Blackstone-backed companies, for instance, are known for investing in cultural alignment, with leaders who embody the core values needed to sustain high-performance and resilience.
Regularly measuring and nurturing this alignment supports the growth and transformation journey and helps avoid cultural friction.
3. Team Dynamics
Understanding the interactions between team members — positive and negative — can significantly impact transformation outcomes. Healthy dynamics foster collaboration and trust, while negative (potentially toxic) behaviours can derail progress.
An effective example of managing team dynamics can be seen in TPG Capital's portfolio, where regular team assessments highlight relationship-building as a priority, reducing unhealthy conflict and creating synergies.
4. Measuring Leadership Capability and Culture: How Often and Why
Systematic assessment is the bedrock for this: evaluating these aspects should not be a one-time exercise. Regular assessments — quarterly, bi-annually, or least annually — offer ongoing insights into individual and team growth. By implementing real-time feedback mechanisms and conducting periodic culture assessments, scale ups can make informed decisions on team hiring, development, and resource allocation.
Hiring: Ensuring the right cultural and skill fit in new hires, enhancing the collective capabilities of the leadership team.
Team Development: Targeted development programs that address both technical skills and behavioural alignment, collectively and individually.
Decision-Making and Prioritisation: When leaders understand the dynamics of their team, they can make better decisions about who should drive specific initiatives and allocate resources more effectively.
5. Case Studies of Investor Led Success in Leadership Assessment
Blackstone and TPG Capital exemplify investors that stress cultural alignment and leadership capability assessment as part of value creation strategies.
PE-backed companies like Ancestry (Blackstone), and Cirque du Soleil (TPG) highlight how effective leadership assessments drive successful transformations. They invest in regular evaluations to ensure their leadership teams not only possess the technical acumen but also the cultural and interpersonal skills needed for complex change.
In conclusion: a broader approach creates greater value
By systematically assessing leadership capabilities alongside values, behaviours, and team dynamics, investors and leaders can significantly increase the chances of success. This holistic approach strengthens team cohesion, enhances decision-making, and ultimately accelerates value creation.
This investment in understanding and shaping holistic leadership at both the individual and collective level is a powerful lever for the achieving sustained, healthy growth and transformational change in scale ups that investors and leaders seek
You can book a meeting for a first discussion about holistic leadership and organisation assessment with us here.
