Talent Pattern Recognition: Navigating Workforce Challenges in Private Equity and Beyond
December 11, 2024 – Scalable talent strategy is a workforce planning approach tailored to meet the evolving needs of organizations by integrating talent acquisition, development, and retention seamlessly. For executive search, this strategy is particularly critical as it prioritizes identifying and securing top leadership talent to drive organizational success. By leveraging data-driven insights, advanced technology, and adaptable workforce models, search consultants enable businesses to expand or adjust their executive teams without compromising leadership quality or operational excellence. This approach emphasizes building a dynamic talent ecosystem—balancing full-time executives, interim leaders, and external networks—while fostering ongoing upskilling and reskilling initiatives to ensure long-term organizational agility and resilience.
Within the private equity sector a scalable talent strategy is especially critical. “As a long-time leader in the talent space, I know that people have the most significant impact on a company’s success, even more so in the high-stakes environment of sponsor-backed businesses,” Ellie O’Brien Coleman, principal with executive search firm Oxeon, said in a recent interview with Hunt Scanlon Media. “The word scalable is key; talent strategies must be adaptable to a changing economic climate and the ever-evolving business needs.”
“At Oxeon, we work with companies ranging from seed-stage startups to growth equity and private equity-stage organizations, thus, we have a unique vantage point for the evolving needs of leadership,” Ms. O’Brien Coleman said. “If I am recruiting a CEO to a $5 million company, I prioritize a different skill set from that of a $250 million business on the heels of a recent transaction. In the same vein, funds build and prioritize a strategy that supports their investments in phases: in diligence, at the beginning of the investment hold, and as they prepare for the next transaction. A scalable talent strategy means making trade-offs, as well. I often advise my clients to consider whether we are hiring for the business today or the company two years from now. As a lifecycle partner to clients, our ability to understand their talent bar, thesis areas, and investment priorities gives the investors a competitive edge. ”
After an acquisition, Hunt Scanlon asked Ms. O’Brien Coleman what steps Oxeon takes to ensure effective talent management and how the firm aligns the team’s goals with those of the portfolio company. “We usually meet our clients during transition periods, often closely following a financial transaction,” she said. “This can be an exciting and challenging time: leadership adapts and builds relationships with their new investors; staff awaits significant change; and the clock starts. As a search partner, I aim to create a trusting relationship with my clients quickly. Hiring decisions are complex, and the more I understand their priorities, the sooner I can find a candidate who aligns with their needs.
Related: How Talent is Driving Private Equity Success
“More broadly, Oxeon is exclusively focused on executive search in healthcare, and we have the privilege of partnering with organizations moving in the right direction,” Ms. O’Brien Coleman said. “As industry experts, we are champions of our client’s vision and mission. Our job is to articulate the role, value proposition, and long-term opportunity to prospective talent. Our mission is to reimagine a healthcare system every person can trust. In our firm, we have a front-row seat; we are all motivated by the opportunity to be a part of the innovation and change needed in this industry.”
Adapting to Disruption
“The last couple of years have been unique and challenging for PE funds and, by nature, their partners,” said Ms. O’Brien Coleman. “As the industry responded to macroeconomic pressures and a renewed focus on profitability, it became clear that many funds would not achieve the planned transactions for that year, and their portfolio companies needed the right, and often new, leadership in place to navigate a challenging economic climate.”
Ellie O’Brien Coleman is a principal at Oxeon, an executive search and investment firm specializing in the healthcare industry. With deep expertise in talent strategy, she collaborates with entrepreneurs, executives, and investors to build high-performing leadership teams that drive innovation in healthcare. Her work spans C-suite placements, including CEOs, CFOs, COOs, and commercial leadership, positioning organizations for long-term success in a rapidly evolving industry. In 2019, Ms. O’Brien Coleman founded Oxeon’s West Coast practice in Seattle, where she has been instrumental in expanding the firm’s presence. She is a key driver behind Oxeon’s board diversity initiatives, championing efforts to bring more diverse perspectives to healthcare leadership. Ms. O’Brien Coleman also leads a female-focused networking group for healthcare leaders in Seattle, fostering a strong community of women executives dedicated to advancing the sector.
Oxeon has responded to the disruption in a few key ways: Investment and cultivation of its financial and operational network. “With the market shift and pending recession in 2023, companies were forced to focus on efficiency and profitability,” Ms. O’Brien Coleman said. “Many of our clients were challenged to reconsider their executive teams, particularly the leaders in operations and finance positions. As I mentioned, there are different types of leaders for the phases of company growth. Companies had leaders focused on growth at all costs and perhaps had not yet navigated an economic downturn in their careers. Thus, 2023 became the year of the CFO and COO shifts. While our finance and operational search practices were robust, competition was fierce. We invested heavily in ensuring we were in constant contact with our network and making connections between talent and our clients, often outside of a specific search engagement.”
Related: Opportunities and Challenges in Private Equity Recruiting
Oxeon also provided proactive identification of strategic, aligned talent. “While deal flow slowed, Oxeon and our partners saw an opportunity for value creation within their existing portfolio companies,” Ms. O’Brien Coleman explained. “We adapted our traditional executive search engagements to help our partners add advisory and board talent to their teams. The operating partner model has existed in many forms, but we saw this role increase in demand, and we were at the forefront of supporting our clients in finding the right executives for their mandates. We helped identify leaders who could either help de-risk current investments or explore new strategies and investment theses based on their experience
Talent Retention and Development
Oxeon’s search process is multi-dimensional, working to identify not only the best functional fit but also ensure our clients are choosing the right person for their organization; one that embraces their core values, is aligned with organizational strategy, and is well-positioned to lead through the company’s long-term value creation plan,” Ms. O’Brien Coleman explains. “We support the placement success by ensuring that our client’s assessment process is comprehensive,” she said. “If our job is done well, our placements join a business with a complete picture of their role and mandate, and the CEO and board is confident in their new leader’s strengths and weaknesses. Oxeon maintains a structured four-phase process, but to ensure it is scalable, it is personalized and tailored to each client’s needs. This varies by stakeholders, company stage, and by role criteria.”
“As a partner to private equity, I also think about our placement’s success beyond the first job,” Ms. O’Brien Coleman said. “Our clients look for leaders who will play a role in their portfolio for many years. We see executives partner with the same PE firm over multiple companies and roles, especially when they have a successful exit and smooth transition plan. This relationship prioritizes long-term value and directly impacts retention, as the candidate sees a future with their sponsor.”
Serving Clients in Healthcare
As an industry-specific search firm, Oxeon focuses on the healthcare sector. “With offices in New York, Seattle, and Nashville, we strive to convene our clients, candidates, and partners in many ways to foster collaboration,” said Ms. O’Brien Coleman. “We facilitate round table discussions and meals with like-minded executives or specific subject matter experts. We also join our clients for annual meetings or talent summits to provide our point of view on talent trends and market insights.”
“In specific client relationships, we build relationships with talent on their behalf,” Ms. O’Brien Coleman says. “For my closest clients, I know their investment themes, target companies or industries, and top talent needs. Armed with this knowledge, I can identify top talent that is aligned with my client’s areas of interest or greatest talent needs. In these relationships, we also deeply understand our client’s bar for talent and often bring them executives who might address multiple needs or support portfolio companies.”
Related: A Look at Key Trends in Executive Recruiting for Private Equity-Backed Companies.
Contributed by Scott A. Scanlon, Editor-in-Chief and Dale M. Zupsansky, Executive Editor – Hunt Scanlon Media
