The facts about executive teams

Our research shows that the make-up of the executive team can be the "make or break" factor in a business. Here are some facts we uncovered:

  • 45% of surveyed private equity investors stated that poor management was the leading factor in their least successful investment.

  • 27% of investors surveyed by Integre Partners believed their ability to hire outstanding executives was inconsistent or unsatisfactory. However, only 8% rated themselves as consistently high in their ability to hire the right people.

  • In the same survey, 81% had been involved in a flawed CEO selection as members of a board. 35% estimated the recruiting, relocation, severance, turnover, and lost opportunity costs to their investors had exceeded $5 million in a single incident.

  • An entrepreneurial venture can improve its likelihood of success by as much as 65% when its management team represents all four management styles.

  • Three or more people on the founding management team increases the success rate of a new venture by 35%.

  • Research studies have shown that in all ventures, but particularly technology-oriented ventures, having a sales person on the founding team can improve the success rate of the venture by as much as 300%.

  • Having a management team member with at least two years of employee management experience improves the likelihood of success of the entire venture by 150%.

  • Experience of three years or more by a management team member in the venture's market segment improves success likelihood by 55%.