A new study offers key management lessons for businesses that have just gone public. It suggests ways to help these companies thrive for many years. One main takeaway is the importance of having an HR executive.
Researchers first surveyed executives from 183 companies in 1997. These companies had gone public the year before. Twenty years later, the team checked in with the 93 businesses that were still operating. They wanted to learn what helped these companies succeed.
Balancing Urgency and Employee Value
The study found that two things are crucial for long-term success: keeping the urgency felt during the IPO and valuing employees. However, too much or too little of either can lead to problems. Too much urgency can cause burnout. Too much focus on employees might lead to a lack of drive.
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Start Your News DetoxThis is where an HR executive becomes vital. This person can help leaders find the right balance. They can ensure the company maintains this balance from the IPO onward.
Miranda Welbourne Eleazar, a professor at the Tippie College of Business, noted that a company's values are set during its IPO. How well the company sticks to these values determines its long-term success.
Practical Strategies for Leaders
Valuing employees is a standard HR practice. But knowing how to manage urgency is less clear. The research team focused on practical ways leaders can find this balance to keep their businesses growing.
Here are some strategies:
- Find a good balance between urgency and focusing on employees. Do not overdo either one.
- Hire a strong HR executive. This person can help put strategies in place to meet these goals.
- Think of HR as a strategic tool, not an afterthought. Managers often overlook the human side of the business during an IPO. They should include HR in their plans to manage and reward employees effectively.
- Encourage employees to feel ownership and investment in the company. This pushes performance while making employees feel valued.
Deep Dive & References
Optimizing Human Resource Conditions for 20‐Year Initial Public Offering (IPO) Survival - Personnel Psychology, 2026
