Investor Alpha Through Human Capital Value Add

The fundamental nature of the Organization 5.0 approach requires the buy-in of the owners. Although a potential barrier to change, this provides an opportunity for active investors seeking to add value to their portfolio companies, to support organisational development.

The Evolution of Investment Strategies

  • Changing the stereotypical downsizing in Turnaround strategies by investors / acquirers, to self-management implementation strategies
  • Did MBO France have their operational performance team work closely with Poult, during their turnaround? (No - is the response from Poult!)
  • How to avoid the errosion of motivation of the portfolio team due to the short-term syndrome of "no point in us putting too much effort in, since we'll have new ownsers in 4 - 5 years".
Working for a Start-Up of 30 people for 4 years (with €12m of VC funding raised) gave me the direct experience of seeing how the Investors have a high degree of influence, yet only see the organization from the information available at the Board Room.  

Critical Questions to Active Investors

  • If you investing in the "capabilities" of both the individuals and organisations to handle complexity, then how are investors:
    • Measuring those capabilities?
    • Supporting the growth in those capabilities?
John Oliver provides metrics-based human capital tools to investors, based on "Integrative" and "Meta-analysis" based research.

- Adult Developmental Metrics (based on the Lectica assessment tools and growth process)
- Organsitional "Stretch" Metrics (based on the Competing Values Framework and 30+ case studies of autonomous team organisations)

Articles and Research Papers

Time Spent Raising Funds vs. Time Spent With Portfolio Companies

Investors are often stretched in where they spend their effort, with the priority of raising their own funds, taking over their abilities to attend to actively supporting their portfolio companies.