Designing a leadership model for holding companies and their portfolio companies
Do you want to strengthen leadership across your portfolio companies while creating a shared framework for the holding company? We work with holding companies and their portfolio companies to develop a leadership model that sets clear behavioral expectations, clarifies responsibilities and accounts for different levels of autonomy.
In an initial conversation, we assess your starting point: What should the model change? Which leadership levels need to be involved? And how can it be integrated into existing leadership and management processes?
When does a leadership model make sense for your holding company?
A shared leadership model is particularly useful when multiple portfolio companies need to operate independently, while leadership and success must be understood through clear, shared principles. Specific triggers might include existing leadership guidelines that are too abstract, the integration of new portfolio companies or changing responsibilities between the holding company and its portfolio companies.
What will you have at the end?
Depending on your starting point, the outcome may include:
- A shared understanding of leadership agreed across the holding company and participating portfolio companies
- Concrete, observable behavioral anchors rather than abstract statements of values
- A clear approach to participation and decision-making for developing and approving the model
- An approach to embedding the model in relevant leadership and performance processes
- Materials for subsequent reflection and rollout within leadership teams
The right components depend on whether the initial aim is to create a shared framework or further develop an existing model.
What is a leadership model in a holding company context?
A leadership model is a documented, binding framework of leadership principles, related commitments and observable behavioral anchors. It typically covers three levels: leading the organization, leading others and leading self. In holding structures with multiple portfolio companies, it serves as a shared reference point for the holding company and its portfolio companies, despite their differing degrees of operational autonomy.
Unlike a mission statement or values charter, a leadership model focuses on behavior: it specifies what actions are expected in leadership situations rather than expressing abstract values.
Does your holding company need a leadership model, a leadership development program or both?
A leadership model and a leadership development program serve different purposes. The model defines the shared frame of reference: Which leadership principles apply to the holding company and its portfolio companies? Which responsibilities remain decentralized, and which expectations are binding across all entities? What behaviors should be visible in specific leadership situations?
A development program builds on that foundation. It helps leaders apply the agreed principles in practice—for example, when working with management teams, setting priorities and making decisions, conducting feedback conversations or managing change.
For holding companies, a step-by-step approach often makes sense: first, a shared framework is created that can be applied across the portfolio. Selected leadership teams or portfolio companies can then reflect on and develop its application in their respective contexts. Leadership development is thus not treated as an isolated initiative, but consistently linked to the holding company’s leadership and management approach.
When does a holding company need a shared leadership model?
The need typically arises when two developments coincide: portfolio companies are given greater entrepreneurial autonomy, while the holding company must ensure that leadership and success are understood consistently across all entities. In family-owned holding companies and private equity structures, this need is heightened by the large number of stakeholders who have their own decision-making authority.
Another common trigger is a preceding period of financial or organizational underperformance. This creates pressure to redefine leadership responsibilities and success criteria consistently before granting further autonomy. Comparable transformation projects show that a clear leadership model is a prerequisite for enabling decentralization without losing control.
How is a leadership model developed?
Development follows a clear approach with four phases:
1. Kickoff and assessment
A workshop with the leadership team (Direct Team) sets the direction. Structured interviews with stakeholders from the holding company and portfolio companies then capture their perspectives on leadership, success and collaboration.
2. Analysis and synthesis
The interview findings are analyzed and distilled into initial hypotheses for the model.
3. Joint development
The model is developed and refined collaboratively through working sessions with the steering committee and feedback workshops with HR leaders, management teams and finance leaders from the holding company and its portfolio companies.
4. Finalization and implementation
After the feedback has been consolidated, the final framework is developed, including an approach to implementation and workshop materials for reflection and information sessions.
What conditions help embed the model?
Three questions need to be clarified to embed the model:
- Who will be involved, and who will make decisions?
- Which expectations and conflicting priorities need to be considered?
- In which leadership, feedback or performance processes will the model be used?
These questions should be addressed early and revisited throughout the process. They provide a clear foundation for the work, but do not on their own guarantee that the model will be effective in practice.
How can holding companies identify the right partner to develop a leadership model?
Developing a shared leadership model is more than creating a mission statement. It touches on the division of responsibilities between the holding company and its portfolio companies, expectations of management teams and leaders, and how shared principles can be applied effectively across different business contexts.
When selecting a consulting partner, owners, supervisory bodies and holding company leadership teams should pay particular attention to whether the partner can:
- Consider both the strategic role of the holding company and the entrepreneurial autonomy of its portfolio companies
- Connect leadership, governance and existing management processes
- Develop concrete, observable behavioral expectations rather than general statements of values
- Bring together the sensitive interests of different stakeholders in a structured way
- Develop a realistic approach to embedding the model that goes beyond simply publishing it
undconsorten develops leadership models in co-production with relevant leaders from the holding company and its portfolio companies. Rather than centrally imposed rules disconnected from practice, the result is a shared framework that provides direction and deliberately accounts for different levels of autonomy.
The next step: Assessing your starting point together
In an initial conversation, we explore together which leadership questions the model should answer, who needs to help develop it, who needs to make decisions and how you will know whether it is being applied in day-to-day work. This creates a sound basis for defining the scope, participation and approach to embedding the model.
