Need: Value Creation

Investment Strategies, Bridging Valuation Gaps, Leveraging AI: VP Forum

June 23, 2023 Brad Gerick

BluWave welcomed a group of accomplished thought leaders June 22 for its latest VP forum.

The panel, comprised of Lauren D’Amore of Prelude Growth Partners, Mackenzie Laudel of Shamrock Capital Advisors and Yan Levinski of Trivest Partners was moderated by BluWave founder & CEO, Sean Mooney.

The experts delved into three critical aspects of the investment landscape: effective sector ideation strategy, bridging the buyer-seller valuation gaps and leveraging AI in the investment process.

Here are some of the key takeaways:

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Summary Takeaways

  • Investment firms increasingly employ long-term thematic exploration for ideation, aiding their decision-making process and enabling differentiation.
  • The dynamic market environment necessitates innovative approaches like earn-outs to bridge buyer-seller valuation disparities.
  • AI is still nascent in the investment arena, with its integration and application varying greatly across firms based on their unique sectoral needs and strategic requirements.

This event was conducted with the Chatham House Rule in place.

Expanding on Sector Ideation Strategy

The panelists stressed the importance of leveraging industry, consumer and market trends to formulate effective investment strategies. To this end, firms are differentiating themselves by immersing in a particular theme or sector over multiple years. This not only lends a unique perspective to every investment opportunity but also leads to more informed and strategic decision-making.

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The panel also touched upon the importance of a focused investment universe. Some firms are moving away from a broad-spectrum approach to concentrate on mid-market, founder or family-owned businesses. This narrower focus facilitates a deep understanding of potential investments and leads to higher quality deal flow.

CASE STUDY: How BluWave Enabled Massive Turnaround of Family-Owned Business

Bridging the Buyer/Seller Gap

As the market continues to fluctuate, there’s been a shift in deal flow, with some firms noticing a lean toward growth equity deals. These deals offer more structural levers to pull during negotiations, proving to be advantageous in the current economic climate.

READ MORE: PE Market Analysis: Growth Strategy for Business

In response to sellers’ high expectations, firms have had to adapt and innovate their negotiation strategies. Earn-outs, previously less favored due to their potential complexity, are now being used more frequently to bridge valuation gaps. Firms are also exploring other attractive deal structures, such as rollovers and seeking to simplify negotiations by taking representations and warranties off the table.

Embracing AI in the Investment Process

The conversation on AI’s role in the investment process revealed a mix of approaches. Some firms have proactively set up AI task forces to explore how the technology can impact their portfolio companies and be integrated into daily workstreams.

READ MORE: AI Data Analytics: Business Intelligence Tools

But as mentioned above, the adoption of AI varies across firms. Some admitted to falling behind, expressing a need to engage AI consultants to bridge the knowledge gap. Conversely, others haven’t yet prioritized AI due to their investment in sectors where it has less relevance.

Whether you’re navigating investment strategies, bridging valuation gaps or exploring the potential of AI, the landscape of investing is continually evolving.

As these conversations unfold, BluWave remains committed to connecting you with the exact-fit resources and insights to navigate this ever-changing environment. To learn more, or to start your project, set up a scoping call with our research and operations team.

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In the Know: Unleashing Potential with Buy and Builds

June 21, 2023 Brad Gerick

The Power of the Buy-and-Build Strategy

Companies are always on the lookout for innovative growth strategies. One approach that has proven particularly effective is the buy-and-build strategy. In this model, a holding company acquires multiple smaller firms and integrates them into a larger entity.

The strategy is akin to a swift game of chess where acquiring and integrating companies quickly can help achieve a stronghold in the market. Moreover, this model can be replicated across cities, allowing for exponential growth and market domination.

A Unified Structure with Unique Entities

The brilliance of the buy-and-build strategy lies in its structural design. At the top is the holding company, equipped with a C-suite, while each smaller company has a General Manager. This organizational structure ensures a balance of central control and local management.

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All these entities under the holding company umbrella share standardized features such as technology, financials, and IT systems. It’s like seeing a network of car washes or dental practices, each maintaining its unique brand while operating under a unified and efficient system.

Creating Value Through Strategic Moves

The buy-and-build strategy offers various avenues for value creation. For example, it can be beneficial to conduct a market study and IT due diligence during the acquisition process to ensure seamless integration. This approach also offers opportunities for cost savings through shared services or offshoring certain operations.

Another important facet of the strategy involves standardizing sales functions and integrating finance and accounting systems. It not only streamlines operations but also sets the stage for a robust reporting structure.

Overcoming the Challenges

While the buy-and-build approach provides numerous advantages, it’s not without its complexities. The integration process can be a significant challenge, requiring meticulous planning and execution. Likewise, maintaining focus on the core business amidst rapid acquisitions is crucial. With the right support and expertise, though, these obstacles can be overcome.

In this regard, BluWave can be an invaluable partner. We connect you with service providers specializing in buy-and-build strategies to help tackle integration challenges, evaluate potential acquisition targets and ensure your core business stays the focus amid rapid expansion.

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The buy-and-build strategy presents a powerful path to rapid expansion and market dominance. With the right expertise and resources at hand, businesses can navigate the inherent challenges and harness the full potential of this approach.

As you embark on your buy-and-build journey, consider BluWave as your strategic partner in growth. Contact us today to discover how our network of providers can support your vision and unlock your business potential.

Navigating Executive Team Assessments: A Brief Guide

June 19, 2023 Brad Gerick

Understanding your executive team’s dynamics, strengths and areas for development is pivotal to your company’s success. Executive team assessments can play a crucial role in this understanding, aligning the leadership team’s skills, behaviors and performance with the strategic goals.

If you’re considering an executive team assessment, BluWave is equipped to connect you with top-tier resources to facilitate the process.

Let’s dive in to better understand what it might look like when you engage a world-class third-party to help.

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The Role of Executive Team Assessments

Executive team assessments contribute significantly to crucial business decision-making processes. They help determine hiring decisions, promotions and leadership development strategies. More than that, these assessments shape an organization’s culture, fostering a climate of engagement and transparency.

READ MORE: Unlocking Organizational Success: The Role of Leadership Coaching

Understanding Executive Team Assessments

The primary objectives of executive team assessments are multifaceted. They serve to comprehend team dynamics, assess leadership performance and identify strengths, weaknesses and potential growth areas within the team and individual leaders. The insights gleaned can be instrumental in enhancing team cohesion, clarifying roles and responsibilities, facilitating personal growth, improving leadership capabilities and driving successful succession planning.

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Behavioral Analysis

Behavioral analysis provides a method for understanding the behavior, motivations and interaction styles of team members. By scrutinizing these elements, companies can optimize team dynamics, improve communication and facilitate effective decision-making processes.

360-Degree Feedback

The 360-degree feedback process involves gathering performance-related feedback from an employee’s subordinates, peers, superiors and sometimes even external stakeholders. It’s an excellent way to identify blind spots, areas of strength and opportunities for development, contributing to improved performance and higher employee engagement.

Performance Evaluation

Performance evaluations involve reviewing an individual’s job performance and productivity to understand their efficiency. The results of these evaluations can inform promotions, salary increments, layoffs and training needs, offering a robust dataset for assessment.

Personality Tests

Personality tests can help you understand different personality types and how they interact. Moreover, by ensuring that the leadership team adheres to a similar set of values, organizations can maintain consistency in decision-making, operations and company culture.

Alignment with Business Goals

Assessments provide an opportunity for reflection and alignment, ensuring that individual and team efforts contribute to company goals. Through the integration of org chart planning, businesses can gain vital insights into key roles, reporting relationships and team interdependencies.

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The Significance of Assessment Results

The results of an executive team assessment can shape professional development plans, improve team dynamics, refine leadership strategies and inform strategic decisions. Incorporating HCM systems software can streamline performance tracking, goal management and feedback collection, further enhancing the assessment process. The role of feedback in the assessment process is instrumental in improving overall organizational performance and fostering a culture of continuous growth and learning.

READ MORE: AI Data Analytics: Business Intelligence Tools

In conclusion, executive team assessments provide invaluable insights into your leadership team’s capabilities and dynamics. They offer a foundation for making informed decisions and fostering a culture of transparency, engagement and continuous growth.

Undertaking an executive team assessment might appear complex, but the rewards of enhanced team performance, strategic alignment and improved decision-making are immeasurable. The BluWave research and operations team is here to connect you with an exact-fit service provider to help you navigate this crucial journey.

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How BluWave Enabled Massive Turnaround of Family-Held Business

Service Area: Interim Executives (CFO and COO)

Client Type: Family-Owned Business

Service Provider Type: Specialized Interim Executives

Industry: Industrial Distribution and Services

The Need
Interim CFO, COO Team for Turnaround

A multi-generation family-owned business faced significant challenges due to declining financial performance and market dynamics. The company also suffered a cyberattack that exposed weaknesses in its IT infrastructure. Recognizing the need for help, ownership sought external expertise to guide them through a comprehensive turnaround.

The Challenge
Revitalizing Profitability, Building Value Creation Foundation

The business grappled with challenges related to its profitability and internal capacity. The cyberattack highlighted the urgency of implementing an effective IT infrastructure and strengthening the leadership team. An outside advisory board, hired by the family, immediately recommended that a multifunctional team with interim CFO and COO turnaround skills was crucial. The objective was to streamline operations, reduce costs and create a sustainable foundation for renewed growth in order to rebuild value for the family and company stakeholders. Trusted advisors introduced the family to BluWave.

How BluWave Helped
Proven Executive Duo a Perfect Match

BluWave sprung into action, first taking time to understand the unique situation and the factors needed for success. BluWave then swiftly matched the family business with a highly experienced interim CFO and COO duo from the BluWave Network who understood the complexities of the company’s industrial markets and possessed a background in turnaround and operational performance improvement. Because of the ready-to-go nature of the PE-grade, pre-vetted Business Builders’ Network, BluWave was able to introduce the perfect fit executives to the company’s family ownership within a single business day.

The Result
Accelerated Profitability, High-Valuation Sale

The transformative efforts led by the interim CFO and COO turnaround team resulted in significant improvements in profitability and operational efficiency. The company quickly took action to stabilize and reinvigorate revenue and optimize human capital, which increased EBITDA from approximately breakeven to more than $10 million in less than 18 months. The cultural shift toward performance and accountability empowered the employee base, enabling them to rise to the challenge and drive positive change throughout the organization. The family was then sold the business to a top private equity firm at a nine-figure valuation.

The collaborative partnership between the family, the interim CFO and COO combo and BluWave facilitated a comprehensive turnaround, leading to increased profitability, operational efficiency and a transformed organizational culture. The company continues to thrive under new leadership, supported by the foundation laid during the turnaround engagement. In fact, the current full-time CFO and the former turnaround interim CFO connected by BluWave keep in touch to this day.

There had to be a tremendous amount of change within the leadership team because we were driving a culture of change toward performance and profitability. They were invigorated by the accountability they saw and the opportunity, and they rose to that challenge.

-Turnaround Interim CFO

Operating Partners’ Forum: Leveraging AI for Data, Analytics

June 14, 2023 Brad Gerick

How are private equity firms and their portfolio companies leveraging data and analytics to transform their business landscape? What are the emerging trends in AI and machine learning? These were the central themes June 13 in the latest BluWave-hosted PE Operating Partners’ Forum.

Our esteemed panelists, Tye Howell of Blue Point Capital Partners, Gregory Kegeles of Newlight Partners and Mark Steenhoek of The Stephens Group, LLC. teamed up for this insightful event.

Here’s are some of the key takeaways.

Summary Takeaways

  • View data as the new oil, demanding the investment of money, skills and experience to extract value
  • Foster a culture of data usage and analytical rigor in portfolio companies
  • Invest in data and analytics both internally and at portfolio companies
  • Be a catalyst for change and push companies toward a more data-driven approach
  • Identify and leverage the right people to lead the data and analytics transformation journey
  • Understand and stay ahead of emerging trends in AI and machine learning, such as generative AI and conversational analytics

This event was conducted with the Chatham House Rule in place.

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Harnessing the Power of Data and Analytics

The panelists shared insights on how data and analytics are transforming the private equity landscape. They emphasized the importance of evolving toward a data-driven culture to drive tangible results. They said it’s essential to be rigorous and proactive about this during both due diligence and value creation phases.

Fostering a culture of data usage in portfolio companies was also underscored, with a focus on the push-and-pull dynamics of growth equity. Firms are often seen as catalysts for change, nudging portfolio companies toward sophisticated reporting and analytics.

The Impact of People and Learning Curve

People are critical to this transformation journey, according to the panelists, particularly in managing the pace of technological advancements. Developing an effective learning curve, choosing the right leaders and even outsourcing certain operations are critical factors in successful data and analytics implementation.

Emerging Trends in AI and Machine Learning

The discussion later veered toward the exciting prospects of AI and machine learning in the private equity space. Generative AI, with its potential applications in quality assurance, marketing and customer support, was discussed. The panelists also expressed interest in the advancements in conversational analytics and low-code, generative support technologies.

When you’re ready to harness the power of data and analytics like the top PE firms, contact BluWave to set up a scoping call with our research and operations team. Whether navigating the complex landscape of data and analytics, managing your workforce or any other business building services, we have an exact-fit solution for you on standby.

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Streamline Your Business-Building Processes with the BluWave Alpha Center

June 6, 2023 Brad Gerick

At BluWave, we understand the challenges that proactive business leaders face in finding and engaging with top-tier service providers. That’s why we’re excited to introduce the BluWave Alpha Center, a cutting-edge portal designed to streamline your third-party sourcing, project management and data insights processes.

This AI-driven platform empowers private equity firms, portfolio companies, and private and public businesses to stay ahead of the curve and be at the forefront of modern value creation.

“We are excited to introduce the BluWave Alpha Center, a game-changing platform that empowers private equity firms to accelerate their business-building efforts,” said Sean Mooney, a former PE deal partner and BluWave’s founder and CEO.

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Enhanced Collaboration for Maximum Efficiency

Collaborating effectively across teams is crucial in today’s fast-paced business landscape. With the BluWave Alpha Center, you can ensure that your entire team is on the same page. Our platform provides a centralized hub for insights, intelligence and white-glove service, facilitating seamless teamwork. From tracking evaluation processes to scheduling meetings, the Alpha Center simplifies collaboration, ensuring that everyone is working toward a common goal.

Accelerate Your Project Kickoff

In the private equity industry, time is of the essence. The Alpha Center enables you to kick off searches to get connected with the exact PE-grade third parties you require at the exact time you need them. By accessing your Alpha Center account, you can submit high-level criteria to our Research & Operations team and schedule scoping calls with ease. Our best-in-class third-party resources are just a few clicks away, allowing you to accelerate your project kickoff and make progress at the speed of private equity.

Efficient Project Management Made Easy

Managing projects efficiently is key to achieving success. The Alpha Center provides powerful project management tools that simplify the process and enable you to make informed decisions faster. Evaluate service providers, manage onboarding processes and track progress from initial review to contract signings all within a single platform.

This streamlines your project management, saves time and ensures that your deal processes stay on track, aligning with your key objectives and improving outcomes.

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Centralized Data Management for Better Insights

Data management is often a challenge, with valuable information scattered across different platforms. The Alpha Center acts as a comprehensive repository, bringing together all your project insights into one place. Catalog projects undertaken through BluWave, access information on providers and capture feedback on past performance.

This centralized tool ensures that you can easily search and share valuable insights across your organization, reconnect with previously vetted resources and facilitate informed decision-making.

Real-Time Insights and Market Comparisons

Stay informed and benchmark your performance with real-time insights and market comparisons. The Alpha Center provides dynamic quarterly updates and detailed reports on project trends, the Value Creation Index and rising priorities in the industry.

Compare your personalized dashboard with these insights to ensure that you’re aligned with the market and leveraging the full potential of your third-party engagements.

The BluWave Alpha Center is more than just a platform – it’s a game-changer for private equity firms and businesses looking to optimize their business-building processes. With enhanced collaboration, accelerated project kickoff, efficient project management, centralized data management and real-time insights, the Alpha Center empowers you to make informed decisions, drive value and stay ahead of the competition.

“We’ve been working with a group of top PE firm beta users, taking their feedback and updating what will be a continually evolving resource,” BluWave Head of Technology & Insights Houston Slatton says. “We’re excited to support existing clients and welcome new ones to the next generation of BluWave.”

Discover the power of the BluWave Alpha Center by scheduling a demo today and unlock the full potential of your business-building strategies.

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HR Carveout Assistance for Lower-Middle Market PE Firm

Service Area: HR Carveout

Client Type: Lower-Middle Market PE Firm

Service Provider Type: Specialized HR Firm

Industry: Financial Consulting

The Need
HR Specialist for TSA

A lower-middle market PE firm required an HR consultant experienced in HR carveouts to support their project. The client needed assistance in negotiating a Transition Services Agreement (TSA) within a three-week timeframe and guidance in managing the interim transitions of insurance, benefits, and payroll.

The Challenge
Complicated Carveout Transition

The client was undergoing an HR carveout involving a tech/SaaS business with upwards of eight figures in ARR. The carveout involved merging two businesses previously combined by another PE firm, with the client acquiring one segment. The client sought an HR consultant to provide expertise in negotiating the TSA and managing the interim transitions.

How BluWave Helped
HR Consultant Connection

BluWave promptly presented the client with several options of specialized HR firms experienced in carveouts. The client engaged a consultant with deep knowledge in their niche. The service provider worked closely with the client to negotiate a robust TSA and provided guidance on managing the interim transitions of insurance, benefits and payroll.

The Result
Seamless Transition

With the HR consultant’s help, the PE firm successfully navigated the HR carveout process. The service provider’s expertise and proactive approach facilitated a seamless transition of insurance, benefits and payroll, while the negotiated TSA provided a solid foundation for post-close operations.

“She was very flexible with the mandate given the carveout nature of the opportunity, and she stepped up to do more when asked. The service provider is very responsive – she always makes time to discuss the company and provide updates.”

-PE Firm Vice President

Maximizing Customer Retention: Strategies for Loyalty, Long-Term Relationships

May 23, 2023 Brad Gerick

What is Customer Retention?

Customer retention measures how well a business maintains its customer base over a specific period. It’s an important metric because it is often more cost-effective to retain existing customers than acquire new ones.

When customers consistently choose your brand over competitors, they bring repeat business, provide valuable feedback and often become brand advocates.

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Achieving high customer retention isn’t easy, though. It requires careful strategizing, meticulous execution and continuous improvement. This is where third-party resources can make a significant difference. Partnering with experts or leveraging cutting-edge tools can save you valuable time and resources.

Whether it’s designing an attractive loyalty program, implementing effective CRM systems or refining your customer experience, industry specific service providers have experience and expertise you need.

Let’s dive deeper into customer retention and how it can help your business.

Understanding The Importance Of Customer Retention

Building customer loyalty is a critical element of customer retention. The value it brings to business growth is immense as loyal customers often translate to repeat business and referrals. There are several key factors influencing customer loyalty, including product quality, customer service and overall customer experience.

Effective customer retention strategies play a pivotal role in fostering long-term relationships. They involve an array of initiatives ranging from loyalty programs to personalized customer engagements. Examining successful case studies can provide a insights for companies looking to improve retention.

READ MORE: Voice of Customer Process: Methodologies for Better Service

Implementing Customer Loyalty Programs

Customer loyalty programs are designed to incentivize repeat business. There are different types of loyalty programs, each with its own benefits. For example, a points system might encourage frequent purchases, while a tiered system could inspire larger transactions.

READ MORE: How To Analyze Sales Data: Tools, Examples, KPIs

When designing a customer loyalty program, several key considerations come into play. These include understanding your customers’ preferences, setting clear and achievable rewards and ensuring the overall process is straightforward and accessible. Implementing and managing these programs effectively can have a significant impact on customer retention.

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Enhancing The Customer Experience

An outstanding customer experience can turn one-time customers into repeat clients and casual buyers into brand advocates. Employing strategies to consistently deliver exceptional experiences can significantly improve customer loyalty and retention.

Using CRM systems to manage customer relationships can have numerous benefits. They can help track customer interactions, provide personalized service and identify trends in customer behavior. Similarly, leveraging customer lifecycle management can enhance customer retention by delivering targeted engagements at each stage of the customer’s journey.

READ MORE: Understanding Voice of Customer: Metrics, KPIs, Analytics

Loyalty Management and Measurement

Effective management of customer loyalty initiatives is crucial to their success. This includes not only the implementation of the programs but also ongoing performance monitoring. It’s crucial to track key performance indicators (KPIs) like repeat purchase rate, customer lifetime value and churn rate. Interpreting and acting on these metrics, however, may require a certain level of expertise that specialized third-party services can provide.

Successful customer retention strategies are not set in stone, but are rather dynamic and adaptive. Continual refinement based on customer feedback, market trends and business goals is paramount to their sustained effectiveness. The process of monitoring and adjusting your customer retention efforts can be intricate and time-consuming. Expert third-party service providers, well-versed in data analytics and strategy adaptation, can be an essential asset in this journey.

READ MORE: What is the Voice of Customer Survey?

The journey of customer retention, from understanding its importance to implementing effective strategies, is an intricate, ongoing process. Customer loyalty programs, enhanced customer experiences, CRM and lifecycle management are all tools in your arsenal to foster loyalty and long-term relationships.

The value of maximizing customer retention is clear, but the path to achieving it can be riddled with complexity. BluWave is here to bridge the gap.

Our research and operations team is here to connect you with industry-specific, expertly vetted service providers to help you navigate the complexities of customer retention.

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Technical Recruiter (IT): Find the Right Candidate Fast

May 18, 2023 Brad Gerick

What Does a Technical Recruiter Do?

A technical recruiter is in charge of finding, interviewing and selecting qualified candidates for technical roles like software engineering, data analysis and technical writing. They seek candidates who have the necessary skills to fill specialized positions in information technology, data science and engineering.

Technical recruiters work for either a company’s human resources department or a technical recruiting agency to fill open positions within a technology-focused company. Oftentimes, an expert technical recruiter who has experience across your industry can be the best way to find an exact-fit candidate, and fast.

“Any specialized recruiter is going to have a better network. They’ll also have a much better idea of ‘what good looks like’ and can help a hiring team calibrate the applicant pool more reliably,” says Houston Slatton, BluWave’s head of technology.

The digital revolution has emphasized the necessity for specialized roles within organizations, bringing to the fore the importance of technical recruiters. They possess an intricate knowledge of the necessary skills and experiences required for these roles and are adept at identifying candidates that align seamlessly with the organization’s unique needs.

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Interim CHRO

Benefits of Technical Recruiters

These recruiters bring a nuanced understanding of the rapidly evolving tech industry and the dynamic skills it demands. This expertise allows them to source candidates who are a perfect fit for both the role and your organization’s culture.

Another substantial benefit of partnering with a technical recruiter is their extensive network within the tech industry. This serves as a rich reservoir for discovering both active and passive talent, often making the difference in finding the ideal candidate.

READ MORE: Hire an Interim CHRO

Moreover, IT-focused recruiters can provide significant time and cost savings. The recruitment process, particularly for specialized roles, can be both time-consuming and expensive. By leveraging their experience, technical recruiters can speed up the hiring process, ensuring you secure the best candidate on the market.

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“We used a recruiter to hire a data engineer, and that recruiter knows the products in our tech stack, so he can better vet the candidates before we talk to them,” Slatton says. “In addition, he knows what the job entails so he can better ascertain up front whether what’s in a resume will actually be a good fit for us because he’s spent so much time in the data space.”

READ MORE: Interim CHRO Interviews

Technical Recruiter vs. Regular Recruiter: Differences

While both technical recruiters and regular recruiters play essential roles in the hiring process, their areas of focus differ significantly. A technical recruiter specializes in filling technical roles such as software development, product management and data science. They hold a comprehensive understanding of the tech industry, with responsibilities including interviewing and assessing candidates for specific technical proficiencies.

CASE STUDY: IT Assessment, Leadership Hire for Business Services

On the other hand, regular recruiters manage the hiring process for a variety of job roles not confined to the tech industry. They may work independently or as part of a company’s talent acquisition department, managing the complete recruitment process for various open roles across different industries.

READ MORE: What is Technical Debt in Due Diligence?

Securing the Right Technical Recruiter

Connecting with the ideal technical recruiter often involves multiple approaches. While you may consider seeking recommendations from trusted industry associates, performing online searches for technical recruiting firms, or even attending industry events to meet technical recruiters, these methods can be time-consuming, costly and don’t always yield the desired results.

READ MORE: Tech Stacks of Companies: How To Choose

The most efficient and effective route is to collaborate with an outside resource that can connect you with a tailor-made third party. BluWave’s invite-only network exists for just that purpose.

We offer a bridge to industry-specific, expertly vetted tech recruiters who can guide your recruitment process. By working with our research and operations team, you can focus on running your business.

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Hire Interim CTO: Benefits, Advantages

May 16, 2023 Brad Gerick

Why should a private equity firm or a private or public business hire an interim chief technology officer?

In today’s fast-paced digital landscape, technology leadership is crucial for businesses seeking to innovate, streamline operations and stay ahead of the competition. But finding the right CTO can be a challenge, particularly for private equity firms managing a portfolio of companies, or private and public companies undergoing significant change. This is why outside resources that are intimately connected to the top temporary tech executives can give you a huge advantage.

“For companies with tech products – internal or external – a good CTO can provide necessary leadership to make sure those products are built on time, at budget and with high quality,” says Houston Slatton, BluWave’s head of technology. “They can also play a role in architecture, validating the tech stack and helping determine the right path forward in growing organizations.

Interim CTOs can serve as a stopgap solution to either turn things around or simply keep the business moving forward while a long-term solution is sought.

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Here are five benefits of hiring a temporary CTO.

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ALSO SEE: Data Consolidation: Benefits, Challenges, Process

1. Improving Technology Operations

An interim CTO can provide a quick but comprehensive assessment of your technology operations. They can identify areas for improvement, streamlining processes, upgrading outdated systems and optimizing technology usage to drive operational efficiency and productivity.

Implementing a new IT asset management system, automating manual processes or transitioning to a cloud-based infrastructure could be part of the transformation. These changes not only free up your team for more strategic work but also enhance your disaster recovery capabilities while reducing IT costs.

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2. Bringing in Best Practices

Interim CTOs, with their vast experience across various industries and companies, can introduce best practices into your organization. They can guide your team in implementing agile development methodologies, which can shorten your product development cycles and accelerate time to market.

Additionally, they can help establish a robust cybersecurity program to safeguard your data from cyber threats and lay out a comprehensive disaster recovery plan, ensuring business continuity in the event of a disaster.

READ MORE: Platform Modernization: App, Software Upgrade

3. Developing a Technology Roadmap

Interim CTOs can craft a strategic technology roadmap that aligns perfectly with your business goals. They can help you identify key technology trends that could impact your industry in the next 5-10 years and develop a plan to adopt these technologies.

This foresight can provide a competitive edge and enable you to prioritize your technology investments effectively based on your business objectives.

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4. Overseeing Technology Projects

Whether it’s a complex digital transformation initiative or a software development project, an interim CTO can provide expert oversight. They can manage the risks associated with these projects, coordinate the efforts of multiple teams and ensure that the project aligns with your business objectives, all while making sure the project is delivered on time and within budget.

READ MORE: How To Extract Data from ERP Systems

5. Providing Strategic Guidance

Strategic guidance from an interim CTO can be invaluable to your executive team. They can help develop a plan to invest in new technologies that will drive business growth, keep you informed about the latest digital trends and advise you on making technology investments that align with your business strategy.

READ MORE: AI Data Analytics: Business Intelligence Tools

Specialized Interim CTOs

There are interim CTOs who specialize in specific technology areas, such as cloud computing, cybersecurity or data analytics. For instance, if you’re considering a cloud migration, an interim CTO with cloud computing experience can assess your needs, develop a migration plan and manage the transition. Or, if cybersecurity is a concern, an interim CTO with cybersecurity expertise can help you assess risks, implement security controls and train your employees on cybersecurity best practices.

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The strategic advantage of hiring an interim CTO is evident. They can provide the expertise and guidance needed to enhance technology operations, drive strategic initiatives and position your business for success in the digital age.

CASE STUDY: Optimizing IT Infrastructure for a Scientific Product Manufacturer

Hiring the right interim CTO can be challenging, which is why engaging a third-party expert in the selection process can be a huge advantage. At BluWave, we excel in presenting tailor-made candidates who align perfectly with your specific requirements. Our deep network of pre-vetted interim CTOs, curated through rigorous evaluation, ensures that you get access to the best of the best. Even better, we can deliver these top-tier candidates within a single business day, enabling you to act quickly and confidently.

Contact our research and operations team to set up a scoping call and leverage the strategic advantages of a temporary chief technology officer.

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