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To gain influence, an operating partner's initial focus should be on what the CEO deems most helpful, even if it's not the biggest value lever. Solving the CEO's immediate pain points builds the necessary trust to tackle larger, more critical, and potentially more sensitive strategic initiatives later.
The most effective way for operating partners to integrate post-acquisition is not by presenting a strategic plan, but by asking "What do you need help with?" and performing hands-on, tactical work to fill immediate talent or resource gaps, which builds trust and yields deep insights.
An operating partner's real value isn't telling operators what to do but sharing the cognitive and emotional burden of leadership. By helping leaders think through the consequences of tough decisions, they provide the clarity and conviction needed to act, something operators often struggle with alone.
A VC's time spent in industry operating roles is invaluable. It fosters empathy for the day-to-day challenges CEOs face, enabling the investor to be a more practical and effective partner, not just a source of capital or high-level advice.
To build immediate trust, Gryphon Investors kicks off portfolio company relationships with a "touchy-feely" session. Using personality assessments, the most senior Gryphon partner must share their own development plans and weaknesses, disarming the new management team and setting a tone of vulnerability and authenticity.
Collaborating with the CEO on hiring for key leadership gaps is a powerful trust-building tool. It provides tangible help on a time-intensive process, demonstrates value, and forces alignment on the skills and profiles needed for the company's next chapter.
When the CEO is the sole go-between for the PE sponsor and the executive team, communication becomes guarded and decisions get reopened. The solution is to facilitate direct, inclusive meetings between the sponsor and the entire leadership team to build trust and shared understanding from the start.
One of the most effective ways to build trust and demonstrate a senior, company-first mindset is to proactively kill your own initiatives. This shows you share the same incentives as leadership—optimizing for company outcomes, not just protecting your own projects and accumulating resources.
To stand out from the flood of PE firms, acquirers must demonstrate deep operational knowledge specific to the seller's industry. Discussing granular details like inventory management, billing rates, and software challenges builds trust and proves you are a credible partner, not just a financier. This operator-led approach resonates with founders.
PMs at founder-led startups often fail to gain influence by jumping straight to strategy. The key is to first earn deep credibility by mastering the product, its customers, and the business. Only after you've demonstrated this command will a founder trust your strategic instincts. Don't skip the tactical work of earning your seat at the table.
The operating partner role is uniquely complex, requiring a blend of four distinct functions. Success depends on discerning which role to play in any given situation, from providing expert advice (consultant) to building trust (therapist), collaborating (teammate), and assessing the situation for investors (spy).