Q&A- Angel Morgan

Any time there is a change in control through a change in ownership structure, there is always a change in firm culture. In this Q&A with Growth Strategies, Angel Morgan, Chief Business Development Officer of Raleigh, North Carolina-based Cherry Bekaert, shares her first-hand experience with culture change since private equity firm Parthenon invested in the firm in 2022.

Leading up to the time of the private equity (PE) investment did your management team target any client-facing strategies they knew they wanted to change that the new investment would allow them to do?

Yes, the PE investment synced with the timing of our targeting strategies. Under the leadership of Michelle Thompson, our Chief Executive Officer, we started an ambitious growth strategy in 2018 which has evolved into our ReimagineX strategy. Parthenon’s investment expedited these plans, which allowed us in the growth function to focus on formalizing sales operations and client experience, as well as enhance marketing automation and sales enablement systems. We also focused on setting up a growth operation more formally, refreshing our brand and streamlining firm communications. We were already leaning in this direction, so the momentum was there when Parthenon invested.

When and how did you bring in your marketing and business development teams into this new strategy and then communicate changes outward to the entire firm?

We have a multi-disciplined growth team that reports to our Chief Revenue Officer, Dawn Patrick. My BD role and the marketing team’s role are closely aligned with the overall firm strategy. Our Chief Marketing Officer, Kathryn DeLia, is the first to know about everything because all firm activity touches marketing in some way. Communications were driven by the executive office and internal communications team and included FAQs, a designated spot on our intranet, as well as talking points for partners, e-mails and town halls.

We always wanted a culture by design, not default, and that strategy remains the same. What has changed is the pace, which has sped up as we can now execute more quickly. We knew we would not get everything right, so we made a pact to fail quickly and learn from our mistakes. For example, at times we had well-intentioned people going into new markets and introducing themselves and their offerings without communicating these efforts to other teams across the firm. To encourage this entrepreneurial spirit, we added some traffic control guidelines to make sure all the necessary support was there to drive optimum success.

Looking at some individual areas, can you talk about how you went about prioritizing investments in operations and the impact this has had on the firm so far?

When it comes to aligned investments, we use a three-pillar approach, one that Parthenon supported from the beginning. First, we aim to inspire our people by prioritizing investment in digitally driven solutions, improved programs and change management. Then, we evolve our business through streamlined project execution and modernized business operations through standardization, automation and offshoring. Lastly, we expand our reach by focusing on organic growth, and by acquiring and integrating firms that strengthen core offerings, add new geographic regions or provide new capabilities.

Can you go more in-depth into the new, or enhanced investments, in marketing technologies?

We are redefining the lead process for alignment and integration with marketing. Robust dashboarding is driving stable forecasting and accountability, and a new website is underway. We continue to fine tune the CRM process with partners training on appropriate use to ensure reliable metrics and clean data. We have also invested in an enhanced targeting tool. We have also invested in new technology for marketing automation and sales enablement.

Have there been changes in business development approaches?

Yes, many changes, and the pace of change has also accelerated. Ideas that used to take a longer time to build consensus around have been fast tracked by building an intentional organizational shift.With increased organizational support, our business development efforts are more effective.

One example is how we align sales team compensation with the behaviors we want to elicit; and we look for ways to make top producers MORE effective by investing in innovative processes. Additionally, we are standing up a new lead management process, which was a technology investment Parthenon was eager to support. We also developed our Ideal Customer Profile. Further, we are investing in national industry alignment and in our digital sales teams. Locking arms more intentionally with the marketing team remains a top priority as well, and I meet frequently with marketing leadership to close gaps and ensure mutual success.

Now let’s talk about changes in sales and marketing budgeting and operations. What were the challenges inherent in this strategy?

We haven’t had a change in our budget process as a result of PE. Sales and marketing have separate budgets but establishing a new service line, or building out a new region, takes a dual commitment in resources. In terms of spending, there must be a business case that makes sense for both industry and service lines – essentially strategic alignment of any investment. We must control cost yet not interfere with the business model that was being used to drive leads. This has been a bit of a firm shift for our partners and more analysis on spend against BD and marketing activities to ensure ROI. Expectations have grown for better tracking, monitoring and reporting for both marketing and sales activity and the ROI.

Looking at Cherry Bekaert today, what stands out to you as the most significant cultural changes that have occurred since the PE investment? How about the most surprising and the most beneficial?

Cherry Bekaert was built on a people first foundation, so we are very intentional about cultural fit when bringing in new firms to preserve that foundation. The biggest cultural change is how we are embracing profitability, not just growth, and giving places for people to participate in that growth in new ways. We are standing up offices and functions and improving efficiencies at Mach speed, and it has been mesmerizing to see this energy in motion. PE has given us the ability to scale quickly and efficiently, with significant investments in technology and people, which is one of the most beneficial changes. Growing at a rapid pace requires an improvement in mind-set and inviting more people to the table, which has wiped out silos in the organization.

I have been most surprised out how much untapped talent we had on the bench. We have given people stretch goals and challenged them to think differently and they have more than stepped up.

Do you have any final thoughts?

I wasn’t prepared for the demands of onboarding and integrating our way of BD and marketing with firms that, in a few instances, had no real experience with formalized sales processes or marketing programs. Separately, discovering internal talent across the firm and watching people develop in new roles has been extraordinarily exciting and fulfilling. Our BD and marketing teams are continuing to evaluate our functions and rise to the new growth of the firm.

Interview by Richard Shippee