PE-CXO’s Success Stories cast a spotlight on private equity-backed operators and the tools and tactics they leverage to create real value. In each entry, a world-class executive details a practical solution to a critical business issue. To be featured, contact mallory.stokker@pe-cxo.com with the subject line “Success Story.”
Executive: Current CFO at a PE-backed outdoor recreation business and multi-time PE-backed finance lead.
Challenge: Increased difficulty, cost and risk associated with staffing an on-site IT department.
Solution: Utilization of an outside resource to staff a virtual IT department.
All companies, whether they admit it or not, are information companies.
An organization’s ability to work each and every day with functioning systems is critical to success. For many years, I managed finance, HR and IT departments with full-time employees on staff. While this is still standard operating procedure in most companies, I no longer believe it’s the smartest way to run a business.
In 2018, I became CFO of a PE-backed platform in the outdoor recreation space. We had some turnover in the IT area that saw years of experience and know-how walk out the door. Within weeks of coming aboard, I knew we were truly in a bind.
After attempting to recruit new personnel, a few items became clear to me:
- The cost to acquire good IT personnel had risen significantly.
- IT expertise had become more specialized. Instead of one individual who knew “everything,” I would need multiple resources to get the job done.