Where EOS® Purity and Private Equity Operating Partners Collide: Finding the Balance – Walt Brown

I’ve been fortunate to collaborate with numerous Private Equity (PE) firms, working closely alongside CEOs and their teams, while navigating the dynamic interplay with PE firm Operating Partners. These experiences have highlighted a fascinating tension: the structured discipline of the Entrepreneurial Operating System (EOS®) and the broad, seasoned expertise brought by PE Operating Partners. – feel free to contact walt@waltbrown.co

The Value of Operating Partners’ Experience and Tools

Operating Partners bring a wealth of expertise, having honed proven operating system (OOS) methodologies that deliver results. Their deep understanding, combined with tailored tools and processes, is invaluable. Ignoring this treasure trove of knowledge and experience is a missed opportunity.

EOS targets founders, entrepreneurs, and CEOs of organizations with 10 to 250 employees—leaders who often benefit from the streamlined simplicity of EOS’s proven tools. In these cases, one individual (often the CEO) leads the EOS implementation with a single-minded focus, supported by an EOS Implementer. This works because the organization’s decision-making and operational alignment are relatively centralized.

PE-Backed Companies: A Different Landscape

However, PE-backed organizations present a more complex scenario. Here, Operating Partners and senior leaders may already have established systems and tools, with strategic methodologies that guide their decisions. The PE firm wouldn’t have invested in a company without a functional foundation, so the starting point isn’t a blank slate.

In this context, a rigid, “pure” EOS implementation risks discarding what already works, throwing the baby out with the bathwater. Instead, the EOS Implementer must serve as a bridge, integrating EOS tools into the existing framework to create a unified operating system—one that leverages both the proven effectiveness of EOS and the nuanced expertise of the PE Operating Partners.

The Role of the Flexible EOS Implementer

As an EOS Implementer working within PE-backed companies, my role shifts from strict adherence to flexibility and partnership. The goal is to ensure the organization runs on a single, unified OOS while maximizing the tools and resources available in the most efficient, productive, and low-risk way.

To succeed in this setting, the EOS Implementer must:

  1. Constantly Connect with the Entire Team and Map the Journey
    They must be able to engage with all stakeholders, collaboratively envision the future, and chart a clear, unbroken path back to the present, with actionable plans to achieve it.
  2. Maintain the Intent of the OOS
    The implementer must focus on driving alignment and engagement while maintaining an awareness of how the entire system—new and existing—fits together.
  3. Be Flexible with Tools and Solutions
    Rigid adherence to EOS tools is counterproductive. The implementer must recognize when alternative solutions are equally effective and avoid the trap of stubborn inflexibility.
  4. Have a Deep Understanding of Finances
    An advanced grasp of financial principles (MBA or CPA level) is essential to navigate the financial complexities and goals of PE-backed organizations effectively. The Implementer must be able “to speak the languge” of accounting and finance.

  5. Understanding How the Operating System Drives Employee BITE (Buy-in, Inclusion, Trust, and Engagement)

    A deep understanding of how the company’s operating system impacts employee engagement is critical for any effective implementer. The ability to recognize and articulate how specific changes influence Buy-in, Inclusion, Trust, and Engagement (BITE) is paramount.

    This advanced grasp of employee psychology, especially within Private Equity (PE)-owned companies, is often underrepresented at the leadership table. An implementer must bridge this gap by ensuring that every system change aligns with fostering a positive and engaged workforce. They should also anticipate and mitigate any potential barriers to engagement that could arise during the implementation process.

Embracing the Hybrid Approach

PE partnerships demand an EOS Implementer who can adapt and bring a level of strategic insight comparable to the Operating Partners. Success lies in fostering collaboration, acknowledging the value of existing systems, and aligning efforts toward a cohesive operating framework. By doing so, the baby stays in the tub—stronger, better-equipped, and ready for growth.