Unlock your business’s full potential: how RMB Ventures maximises value creation

In the context of private equity, value creation generally centres on maximising returns for shareholders. However, RMB Ventures believes that value should be created for all stakeholders and society at large. This approach empowers businesses to reach their full potential across a broader spectrum of metrics than simply how much profit they generate.

In the words of expert mentalist and best-selling author Gilan Gork: “Significance is attained when a company generates purpose-led influence, operates in a consciously congruent way with its purpose, and develops responsive leaders who are able to influence themselves and the organisation in new directions.”

The RMB Ventures team believe their journey and purpose is to empower people, teams and businesses to unlock their full potential. As such, they've developed a structured way in which to approach value creation, which starts with an in-depth and honest analysis of the full potential of the business.

They believe if they can help businesses create the right internal conditions for success, work with them to allocate capital to the right initiatives, create the right incentives and, if possible, adopt a shared value approach in their strategy, the outcome will be a business that is positioned to achieve its full potential.

There are four key considerations when unlocking value:

1. A clearly defined purpose

RMB Ventures' goal is to become an enabler of successful management teams to help them grow not only their own business, but the economy as a whole.

Every business is unique, and understanding why you exist as a business by defining your purpose not only cements your conviction in a strategy, but motivates your employees to deliver discretionary energy.

This purpose then guides RMB Venture's business and operating model. The insights uncovered by the RMB Ventures team help them to identify themes and problem statements they need to solve, and they manage their portfolios based on this.

2. Understanding full potential and diagnosing where the “unlock” might lie

Next, the RMB Ventures team diagnoses where the “unlocks” and transformative opportunities for full potential are across four categories: environment, strategy, leadership and organisation, with digital being the enabler in most cases.

Using this framework and working alongside management, the RMB Ventures team prepares a “Full Potential Roadmap”. In all these discussions, they ensure that management are building capabilities internally that will be retained long after RMB Ventures have exited as shareholders.

3. Possibility vs constrained thinking

Organisations are living, breathing beings with intertwined ecosystems. Making changes in one area can have significant impact in others. The challenge is that many people and businesses become constrained in their thinking and thus in their approach, but many constraints are self-imposed.

The RMB Ventures team encourages a growth mindset, asking management teams to explore possibilities without being tethered to this harness. 

Bold steps must be taken to explore new ideas, embrace uncharted territory and suspend judgment. Disruption happens when people can contemplate things that are not completely within their current view, so management is asked to consider: “What could our business truly accomplish if we unlocked its full potential?”

RMB Ventures can then find other people who can solve for how to make it happen, if they don't have the expertise themselves.

4. Increasing the cadence of decision-making — changing team behaviour

How does the RMB Ventures team shift mindsets to catalyse full potential? Ultimately, your only sustainable competitive advantage is your people and the magic they create when they work together. Identifying the right people to champion the journey of value creation and leveraging their strengths is key to creating the agility needed to maximise potential.

There needs to be a relentless focus on agility and the speed and clarity of decision-making and execution. Adopting a mindset of openness and willingness equally creates a cadence that accelerates the process of constant adaptation. In time this culture and biomimicry permeates the organisation.

The results

The key to achieving full potential lies in finding areas of limitation that can be unlocked with motivation, incentive and strategy. The RMB Ventures team has spent significant time on this topic internally, as well as helping many businesses achieve success and create value. Having the right partner on this journey is invaluable to removing friction points and ensuring that the entire team is on the same page.

From understanding purpose, to developing the right leadership skills, to finding the right incentives, to changing mindsets and ultimately embracing possibility — RMB Ventures walks with management teams and fellow shareholders every step of the way as a partner for the long term.

RMB Ventures believes in patient capital and will not chase immediate gains at the expense of sustainable value. Its goal is to create a perpetual cycle of growth and value creation. The output will be value for all stakeholders. 

• About the authors: Andrew Aitken is head of RMB Ventures and Sally Jansen spearheads the RMB Ventures value creation strategy.

This article was sponsored by RMB Ventures.