Middle managers are the executive team’s key to nurturing talent. In private equity-backed, middle-market companies, it’s critical to invest in middle management’s ability to foster talent and build critical infrastructure as a portfolio company scales and grows. 

At its core, the value proposition of an excellent middle manager is leading teams on a common mission to drive results. Middle managers at portfolio companies need to be agile, adaptable leaders while successfully developing and coaching their teams. CXOs must support and invest in this level of leadership to build the foundation that leads to future value creation and portfolio company growth. 

Why Invest in Middle Management?

“Organizations with top-performing managers yield multiple times the total shareholder returns (TSR) of those with average or below-average managers over a period of five years.”

— 2023 McKinsey report

In an increasingly automated world, the soft skills a good middle manager can put to use in coaching and developing their direct reports are invaluable. Good middle management accomplishes the following objectives:

  • Increases an organization’s resiliency, particularly by reducing costs, optimizing efficiency, and diversifying revenue. 
  • Alerts management to problems that arise at lower levels of the organization and aligning their teams with C-suite goals before issues escalate....