At the core of Mekong Capital’s vision is a commitment to reinvent Private Equity in the domain of value creation. In our early days, especially 2001 to 2007, we tried to add value by sharing our useful ideas, providing solutions, and sometimes doing work for the investee companies. We even hired experts in Six Sigma and Lean Manufacturing to show the companies how to improve their operations, but it just wasn’t working. No matter how great our ideas were, this just had little or no impact.
Starting in December 2007, we embarked on a 3 year transformation journey, in which we started from nothing and invented a new approach to adding value which is grounded in who people are being and how situations occur to them. This started with who we are being, our core values, our commitments for the future, how we communicate, what kind of leadership and coaching we are providing.
Our partnership with each investee company starts with our shared vision for the future of that company, not an aspirational vision but a committed vision, and they can rely on us to be their partner in achieving that vision. We encourage them to create a bold, breakthrough vision for their future, and transform who they are being and how they see things such that they will reliably fulfill that vision. Another way of saying this is that we are transforming how situations occur for us and our investee companies in ways that lead to new actions, breakthroughs, velocity of action, and ultimately the achievement of the committed vision. We call this approach Ontological Private Equity.
We utilize a framework called Vision Driven Investing, which was originally launched in 2009. The Vision Driven Investing framework is regularly reviewed and refined, at least quarterly but normally more frequently based on careful analysis and insights about what’s working best. The framework is carefully back-tested against our past 40 investments since 2001 to ensure it is strongly correlated with what has led to the best performance among our investments until now.
Vision Driven Investing is an ontological framework meaning it is the domain of occurring and being, not knowledge. We assert that when people create new ways of occurring and new ways of being, new actions will naturally arise and new breakthrough results will be delivered. The 15 elements of Vision Driven Investing could be thought of as 15 perspectives, like places to look from and ask questions from. These 15 worlds can provide a vivid and compete view of what it takes for a company to reliably achieve its vision, and also provides access to the transformation necessary to do so. Vision Driven Investing is NOT a set of best practices or solutions. It is not something that we can give or force onto a company, rather it is spaces in which our investee companies discover and create for themselves, always towards the fulfillment of their Vision. For example, reading a book about leadership is just not the same thing as being a leader and taking actions consistent with those ways of being.
The 15 elements of Vision Driven Investing include:
- Optimal Pathway (strategy)
- Business Intelligence Treasure Maps
- Generating Breakthroughs
- Management Team / HR Capability
- Organizational Beingness
- Employee Performance
- Corporate Governance
- Outside Experts
- Customer Experience
- Digital Transformation
- Delegation & Accountability
We believe that our ontological approach and the Vision Driven Investing framework is at the core of the breakthroughs in performance our investee companies have achieved since 2009. Furthermore, we’ve delivered this with increasing consistency as we continue to transform ourselves and refine this approach on our journey of reinventing Private Equity