If you want to be successful, you have to harness the talent. The top private equity firms have a genius for hiring superior talent. All organizations need great people, but PE measures talent with one test only: performance. It’s not that private equity firms are heartless. Rather, their three- to five-year time horizon doesn’t allow for misfires. They are hardheaded—it’s all about what they need, what they’ve got, and where to fill the gaps. And they act quickly to replace senior managers who fail to deliver.