The focus on operational improvements has never been sharper. While much of the conversation centers around cost efficiency, growth and digital transformation, one of the most powerful—and often under-leveraged—tools for driving lasting value is governance.
At its core, governance is about decision-making. Who has a seat at the table? How are priorities set? How is accountability enforced? But it’s also about mindset—establishing a culture where truth surfaces fast, incentives are aligned and people are empower to act. For PE firms looking to optimize their portfolio, governance should be viewed not as a check-the-box compliance measure, but as a value creation lever in its own right.
Governance Is Not Just for Risk, It’s for Results
Traditionally, governance has been seen as a necessary (but often passive) part of the investment lifecycle. There’s a board in place, meetings are held and quarterly reports are reviewed. But in high-performing PE-backed companies, governance isn’t just a guardrail. It’s a growth engine.
A well-composed and actively engaged board can:
- Push for clarity on strategic priorities
- Hold leadership accountable to operational milestones
- Identify gaps in capability early
- Mobilize resources quickly during periods of change
- Provide seasoned insight during scaling, M&A or restructuring
We’ve worked with sponsors who’ve restructured a sleepy board and, within months, reenergized the entire organization and catapulted growth. The catalyst wasn’t a new strategy. It was sharper governance.
The Governance-Operations Link
In our experience advising both sponsors and management teams, we’ve seen time and again that strong governance correlates with faster execution and more disciplined scaling. A well-structured board can accelerate decision-making cycles and surface red flags early, before they erode value.
For example, bringing operational experts into the boardroom, especially those with deep functional or sectoral experience, can bridge the gap between strategic vision and on-the-ground execution. These voices can help management sharpen KPIs, challenge assumptions and translate long-range plans into weekly priorities.
Driving Accountability
Governance also plays a critical role by instilling accountability, which ensure the right metrics are being tracked and acted upon. In high-growth or founder-led environments, this governance layer is often the missing link that allows companies to transition from “good ideas” to “repeatable performance.”
When governance frameworks are aligned with the investment strategy, they can help hit operational milestones, ensure the business is evolving to meet the market, and that the organization has the right infrastructure to support the business’ growth.
Enabling Transformation
Finally, governance is a key enabler of transformation. Whether it’s a carve-out, turnaround or buy-and-build strategy, the pace and complexity of change demands a governance model that is agile and decisive. Without it, even the most promising transformation efforts risk stalling out.
At Sapere Advisors, we work closely with investors and leadership teams to design governance structures that do more than monitor. They drive change. That means aligning the board’s structure with the growth strategy, identifying and onboarding directors with real operating experience, and building rhythms of engagement that actually move the needle.
Strong governance isn’t a barrier to autonomy. It’s a catalyst for action. When implemented with intention, governance becomes an engine for strategic clarity, operational excellence and value creation. For private equity sponsors looking to maximize outcomes across the portfolio, governance shouldn’t be an afterthought. It should be a starting point.
