The PE toe cutters are in charge. Should I resign?

Dear Aunty,

I was appointed to run a business with a focus on growth. However, the owners have now sold out to private equity and the focus has changed.

In board meetings the directors clearly state that they support growth strategies. But then all they talk about is stripping costs out of the business and the profit.

I am really confused because on the one hand they say they support my strategy but on the other act as if there is another strategy altogether.

While I have implemented some cost cutting, I am not the guy to run an aggressive cost cutting strategy, as I like building businesses. I am finding this very stressful and don’t actually want to implement the next stage of cost cutting that they have suggested. There is no use my raising this at board level because I already have and they tell me everything is going according to plan. Should I resign? There are some good opportunities currently in the marketplace.

Confused,
Sydney

Dear Confused,

Yes. You should resign. But before you do, force the issue. It is amazing how many people don’t have the talk they really need to have. Draw up two strategies: their strategy and yours. Then do projections on both strategies. (You never know, they might be right!)

At the board meeting run the board through the two strategies. Point out you are the bloke to run one strategy and not the bloke to run the other. Have the talk, force the issue. Be articulate but reveal your passion.

Then leave them with the question; which bloke do they want steering the ship? As you know it probably won’t be you. But at least that way you will leave on your terms with your integrity intact.

It will also make them realise they cannot have it both ways and the ramifications if they relentlessly follow the cost cutting path.

Good luck,
Your Aunty B

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