Redefining Executive Competence in Grid-Adjacent Manufacturing

From Uptime to EBITDA: Redefining Executive Competence in Grid-Adjacent Manufacturing

In PE-backed manufacturing, yesterday’s operational playbook is no longer enough.

For decades, executive competence in grid-adjacent manufacturing was defined by one primary metric: uptime. The ability to keep production running—reliably, consistently, and without disruption—was the ultimate test of leadership capability.

But the market has shifted, and this shift has ramifications for manufacturers who haven’t kept apace with new expectations. In a post-pandemic, supply-constrained, electrification-driven economy, uptime is only part of the equation. For private equity investors, the real measure of leadership is how effectively executives can convert operational stability into scalable, EBITDA-driven value creation without losing the cultural and operational integrity that made the platform worth acquiring in the first place.

This is the new standard for C-suite recruiting in manufacturing, and it demands a different kind of leader.

Why the Old Definition of Competence Falls Short

For most of the last century, grid-adjacent manufacturing executives were evaluated on operational mastery:

• Maintaining production output despite workforce turnover, supply interruptions, or maintenance cycles
• Delivering on-time orders at competitive cost
• Reducing downtime to preserve customer relationships and market share

While these skills remain necessary, they’re no longer sufficient. PE-backed companies face challenges that can’t be solved by operational know-how alone:

• Compressed value creation timelines: PE owners expect measurable performance gains within 24–36 months of acquisition, not five to seven years.
• CapEx prioritization in a constrained environment: Grid modernization, EV charging buildouts, and electrification projects are absorbing resources.
• Volatility in supply and demand: Transformer shortages, tariffs, and policy shifts create planning uncertainty.
• Integration complexity: Roll-ups demand leaders who can unify systems, teams, and brands without slowing execution.

In this context, competence is not simply “can you run the plant?” It’s “can you run the plant, integrate a new acquisition, present a growth plan to the board, and hit EBITDA targets on a PE clock.”

In order to identify the leaders who are suited for these new standards (or have the ability to rise to meet them) executive recruiting for these organizations has to evolve.

From the Shop Floor to the Boardroom: Expanding the Competence Map

To thrive in this environment, manufacturing executives must bridge two very different spheres:

1. Operational Excellence: Maintaining reliability, quality, and efficiency on the shop floor.

2. Strategic Translation: Converting operational stability into measurable, sustainable EBITDA growth that aligns with the deal thesis.

The gap between these spheres is where many promising leaders falter. A CEO recruited for their operational skill may be exceptional at managing production flow, yet struggle to:

• Model the EBITDA impact of a new CapEx deployment
• Reallocate resources in response to regulatory delays
• Articulate operational constraints in investor language
• Build cross-functional strategies that integrate sales, operations, and finance

Similarly, an executive whose strengths lie predominantly in providing boardroom-suitable messaging but who lacks an understanding of the nuts and bolts beneath the figures they’re presenting is also likely to falter.

That’s why you need an executive search firm with deep PE-manufacturing expertise that knows how to identify candidates who excel in both arenas, and won’t simply mark the search as done when they find someone who is good at just one.

The PE-Ready Competence Framework

At Kersten Talent Capital, we’ve identified five core competencies that separate high-performing leaders in grid-adjacent, PE-owned manufacturing from those who merely maintain status quo:

1. Financial Fluency Beyond the P&L

• Ability to connect operational changes to EBITDA, cash flow, and exit valuation.
• Comfort with scenario modeling and sensitivity analysis for strategic decisions.

2. Integration Acumen

• Skilled in blending legacy operations with newly acquired entities.
• Maintains productivity and morale during system and process transitions.

3. Market & Policy Intelligence

• Stays ahead of tariff changes, regulatory requirements, and infrastructure policy shifts.
• Builds contingency plans that protect both production and margins.

4. Investor Communication

• Speaks in terms that build board confidence and align expectations.
• Translates technical challenges into actionable, financially relevant decisions.

5. Resilience Leadership

• Leads through volatility without reactive overcorrection.
• Builds adaptable teams that can pivot with market conditions.

These aren’t traits you can train into a leader under pressure. They need to be a central facet of your CEO recruitment process from day one.

The Danger of Hiring for Yesterday’s Competence

One of the most common mistakes we see in C-suite recruiting is hiring executives who were highly successful in stable, legacy manufacturing environments then expecting them to adapt overnight to the high-velocity, high-visibility demands of PE ownership.

The signs of mismatch show up quickly:

• Operational decisions made without financial alignment
• Integration fatigue among middle management
• Slow response to supply shocks or policy changes
• Defensive posture in board discussions

When this happens, PE partners often spend months trying to “coach up” the executive; time that erodes the hold period and reduces the likelihood of hitting return targets.

An experienced executive search firm mitigates this risk by vetting candidates not only for operational excellence, but for deal-stage readiness.

Redefining the Search Process

Avoiding mismatch starts at the search stage. Instead of prioritizing purely operational track records, the CEO recruitment process for PE-owned manufacturing should assess candidates through the lens of the PE-ready competence framework:

• Can they speak fluently about EBITDA impact?
• Have they led integrations, not just plant operations?
• How do they process and respond to external volatility?
• What’s their track record for aligning operational teams with financial goals?

This isn’t about replacing operators with financiers. It’s about finding operators who can operate like investors.

From Competence to Competitive Advantage

In grid-adjacent manufacturing, the right executive hire maintains uptime and turns it into scalable profit. They can take a plant that’s running smoothly and strategically deploy its stability to fuel expansion, capture market share, and position the platform for a stronger multiple at exit.

This is where targeted executive recruiting becomes a competitive advantage. The firms that understand this will not only hire better leaders, but build platforms that are inherently more resilient, more agile, and more valuable in a market where both the grid and the capital stack are under constant pressure.

If you’re ready to align your next CEO or C-suite recruitment with your value creation strategy, contact Kersten Talent Capital today.