“Why are so many B2B CMOs miserable at PE-backed companies?” I asked plaintively. The room went silent, awaiting the response from Darren Herman, Managing Director, Bain Capital, at the Imaginarium Summit. His answer was important, and I’ll get to it. But first, the sources of my question.

Misery Source #1: Time Sucks

“I spend 70% of my time prepping for or following up on meetings with our PE firm,” shared a CMO from a $600mil PE-backed tech firm. Pressing for details, the CMO explained that they had to prepare a 200-page document for every board meeting that goes through every available data point. “I don’t have time to think, plan, or lead – instead, I’m buried in the minutia.”

Misery Source #2: Micromanagement

“I have junior analysts going through our Google ad word buys by keyword by bid and asking me questions about them,” explained a CMO from a $300mil SaaS company. Admittedly, this is a subset of Misery Source #1, but it speaks to the hope of the PE firm that they could optimize (via micromanagement) their way to an EBITDA target.

Misery Source #3: Budget Allocations

“When the PE firm merged us with another company, I was told Marketing would be 7% of ARR and Sales would be 18% without any historical data or justification,” noted the former CMO of a $1B cybersecurity firm that had been growing 15-20% per year. The understanding that Marketing is an investment versus a cost seems to be rare among PE-backed companies.

Misery Source #4: Magical Thinking

“Our budget was cut 40% while our growth target was increased by 25%” added the CMO from the $1B cybersecurity firm. “The targets seemed arbitrary without any explanation for how they could be achieved – the pressure was literally killing me,” the CMO shared after leaving the job.

Rant over (for now). On to Darren’s important counsel.

Understand the Investment Thesis

Knowing why the PE firm bought the company and why they believe they can help it grow should help CMOs align their marketing efforts. Fair enough. I want to believe it would make a difference, but I need to check back with a few CMOs who’ve been there and done that.

Prepare to Work Fast

Ubiquitous sneaker wearing is emblematic of Bain Capital’s expectation of performance speed. Got it. Get it. As should any CMO taking a job for a PE-backed company. That’s why we give our "Huddlers" access to a First 90-Days Quick Wins Cheat Sheet.

Unfortunately, not every potent marketing lever responds instantly. For example, improving your ratings with key industry analysts takes time (6-18 months) but can have a huge impact on consideration and close rates. Similarly, building out a new partner channel takes time but can bring significant growth, especially during economic downturns. The same is true for becoming a community-led growth company.

In fairness to Darren, not all PE firms are the same. Some add value. Or at least try. [Link to Darren's thoughtful advice.]

Written by Drew Neisser