Optimizing Private Equity Investments: The Role of Project Management Offices

The primary goal of private equity (PE) investment is to foster the growth of portfolio companies and realize an increase in Enterprise Value upon exit. Achieving this growth involves executing a strategy that may include acquisitions, organic growth, market expansion, cost reduction, or other initiatives that demand resources and time from the portfolio company's leadership. The Project Management Office (PMO) plays a crucial role in providing additional bandwidth for the management team, maintaining focus on established priorities, and achieving the company's growth objectives.

Effectively deploying a PMO to lead company initiatives involves several key aspects:

• Appointing a dedicated PMO leader responsible for overseeing initiatives and ensuring accountability, with oversight from an executive steering committee and sponsors.
• Providing transparency to the management team regarding the overall business, including the rationale behind the business strategy and initiatives, organizational alignment, monitoring business objectives, and market conditions.
• Defining individual work streams involved in specific projects and initiatives within each work stream.
• Creating detailed action plans for each initiative that can be tracked with due dates and assigned responsibilities.
• Providing regular updates to the executive team regarding status and any encountered roadblocks.

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Successfully executing company objectives throughout a project is crucial for achieving revenue and margin targets as the company pursues its growth strategy. It's essential not to lose the momentum established early on in a project or following an M&A transaction. Leveraging the knowledge and vision early in the business process, and delivering financial impact expediently, is key.

Beckway’s PMO Practice has decades of experience working with organizations to complete complex M&A transactions and leading the integration process both pre-and post-close. We specialize in understanding the unique aspects of consolidating two companies and executing a structured process to meet financial, operational, and time-related goals. For more information, please contact Beckway’s PMO Practice Lead, Chuck Shifferd.