{
  "docId": "019dd923-5ca1-7489-b635-f31a406868d6",
  "docSlug": "ad48a7aff8040249",
  "documentTitle": "Global Private Equity Report 2016",
  "authorId": "Bain",
  "authorName": "Bain",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "portrait",
  "aspectRatio": 0.773,
  "pageNumber": 59,
  "pageCount": 72,
  "prevPage": 58,
  "nextPage": 60,
  "slideType": "executive_summary",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 2,
  "notes": "Page 53 of a report. Discusses 'fireman approach' and 'hammers seeking nails' as failed models, and introduces the 'general activist model'.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 0.9,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5ca1-7489-b635-f31a406868d6/59",
  "deckHref": "/decks/019dd923-5ca1-7489-b635-f31a406868d6",
  "deckJsonHref": "/decks/019dd923-5ca1-7489-b635-f31a406868d6.json",
  "deckAnchorHref": "/decks/019dd923-5ca1-7489-b635-f31a406868d6#slide-59",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Having achieved the predictable results from flawed approaches, some PE firms are beginning to recognize that a solid portfolio value-creation program needs to flow organically from a firm's unique strategy and values.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd951-ba87-7184-bb97-441790f72de4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.2,
        "w": 0.7,
        "x": 0.15,
        "y": 0.45
      },
      "kind": "paragraph",
      "text": "The shortcomings of some PE firms' portfolio value-creation plans stem from the fact that they often originate not as efforts to take an integrated view of the portfolio but are organized instead as solutions seeking problems rather than the other way around. One manifestation of this could be called the \"fireman approach\"... Another common value-creation misfire might be called the \"hammers seeking nails\" approach.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "75efdbb1-af53-4636-9aa5-8bf90c162cee",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.7,
        "x": 0.15,
        "y": 0.28
      },
      "kind": "paragraph",
      "text": "There is no one winning formula for getting this right, but the inconsistencies do share many of the same characteristics. Survey respondents report that their value-creation plans fall short because their portfolio management teams do not have the requisite skills to pull them off, and the plans are too ambitious, lack sufficient resources to achieve their goals, fail to win buy-in from management or do not receive adequate board oversight (see Figure 2.14).",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9f4e68cb-8578-4ccf-8908-22a5dbb51cc6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.7,
        "x": 0.15,
        "y": 0.83
      },
      "kind": "paragraph",
      "text": "The general activist model. Many large, well-capitalized PE firms build portfolio activism into their DNA. Their multidisciplinary operating teams bring a high level of engagement to each deal they do across the broad range of industries and sectors in which the firm invests.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a8fb0486-af45-4792-89c0-ecbe594ec498",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.7,
        "x": 0.15,
        "y": 0.67
      },
      "kind": "paragraph",
      "text": "Having achieved the predictable results from flawed approaches, some PE firms are beginning to recognize that a solid portfolio value-creation program needs to flow organically from a firm's unique strategy and values. Bain believes that any properly structured approach should be consistent in the way it acts across companies and address three interlinked issues: the firm's philosophy, its engagement model, and its organization.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ba7309fa-d6cf-4840-a3db-9af14fe11b18",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.7,
        "x": 0.15,
        "y": 0.12
      },
      "kind": "paragraph",
      "text": "PE professionals have been candid in recognizing their shortcomings. A recent Bain survey of operating partners hired to head up portfolio value-creation initiatives found that only half of the respondents said that their firm had developed a clearly defined model for how to proceed (see Figure 2.13). Just 40% report that their portfolio management teams are fully staffed and focused on the right priorities.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c24a8b81-1959-4ff1-b1be-db00335050c4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.02,
        "w": 0.5,
        "x": 0.25,
        "y": 0.05
      },
      "kind": "title",
      "text": "Global Private Equity Report 2016 | Bain & Company, Inc.",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2f3a7574-ef27-4814-af9f-5bfa4ae2b355",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Executive summary",
      "slug": "executive-summary",
      "agent": null,
      "layer": "slide",
      "matchId": "8fadba2e-1625-4389-a7bf-b5569d8701ad",
      "evidence": "Global Private Equity Report 2016 | Bain & Company, Inc.",
      "confidence": 0.9
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 69,
      "from": 45,
      "beatId": "019dd95a-07a5-761b-9143-96bfcaddcd0f",
      "arcName": "The Triple Take",
      "arcSlug": "triple-take",
      "beatName": "The Action (Now What)",
      "beatSlug": "triple-take-the-action-now-what",
      "evidence": "Sweet-spot, thematic, value-creation playbooks plus recession-proofing in Section 3.",
      "position": 3,
      "confidence": 85,
      "parentBeatName": "Resolution",
      "parentBeatSlug": "resolution"
    },
    {
      "to": 63,
      "from": 59,
      "beatId": "019dd95a-07a5-761b-9143-a4ffc66da8a9",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Evidence & Proof",
      "beatSlug": "consultants-gambit-evidence-proof",
      "evidence": "Value-creation capability data + consistency case + key takeaways.",
      "position": 4,
      "confidence": 70,
      "parentBeatName": "Evidence",
      "parentBeatSlug": "evidence"
    }
  ],
  "loops": [
    {
      "to": 63,
      "from": 59,
      "name": "Capability Gap",
      "slug": "48-capability-gap",
      "bestFor": "M&A strategy, digital transformation, organizational design",
      "matchId": "019dd95a-088c-724c-b312-6daf4c8a9e1b",
      "evidence": "Chart: 'only half say they have a clearly defined model'; closes with 'Consistency is critical' and key takeaways.",
      "position": 8,
      "objective": "Diagnose value-creation capability gap and call for consistency",
      "structure": "Required Capabilities -> Current State -> The Gap -> Build vs Buy vs Partner Decision",
      "confidence": 80,
      "description": "Compare required capabilities vs. current capabilities to define the build/buy/partner decision"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}