Gartner Insights Abstract

Operating Partners: Monitor These KPIs for a Strategic Pivot

Published: 24 July 2024

Summary

Several strategy pivots can be used to optimize a portfolio company’s growth. Operating partners should partner with the PortCo CEO to determine how and when to pivot their strategy using KPIs as indicators for decision making.

Included in Full Research

Overview

Key Findings
  • According to the 2023 Gartner Tech CEO Survey, 85% of CEOs navigate at least one strategy pivot. Annual recurring revenue is one of the top KPIs, directing pivots for 30% of CEOs. This presents an opportunity for the operating partners (OPs) to improve their long-term organizational success.

  • Customer retention rate/churn, customer satisfaction, sales win rate and gross profit margin direct pivots for 22% to 24% of CEOs, and revenue growth directs the decision to pivot for 43% of CEOs. Successful pivots ensure an opportunity to reinvest in future growth opportunities.

Recommendations
  • Select the most relevant pivot type by focusing on

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Analysts:

Barry Glauberman

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