TriNet and General Atlantic: Building America's Largest Independent HR Provider

05.04.10

General Atlantic invested in TriNet, a leading human resources provider for small and mid-size companies,  in 2005, attracted by the company's innovative IT platform.  TriNet was one of the largest privately-held HR providers in the U.S. with a strong presence on the West Coast.

Over the past five years, GA has worked closely with TriNet to supplement the management team, ultimately recruiting Burton Goldfield as CEO when Martin Babinec, the company's founder, transitioned to the role of chairman and then director.  GA also helped TriNet assemble a world-class board, accelerate sales, and execute four M&A events including the acquisition of Gevity.  TriNet continues to be the largest independent HR provider in the US with strong presence in multiple verticals, and is seen as a vital partner to the basic operations of small to mid-size businesses.

In April, GA sat down with TriNet's CEO Burton Goldfield to discuss his experience with GA as a strategic partner as the company achieves new peaks of growth.

GA:  You joined TriNet as CEO at a very interesting time.  What were the biggest successes and the most challenging aspects that you experienced?

Burton Goldfield:   It's been an incredible two years, obviously highlighted by TriNet's acquisition of Gevity, a public company that we took private and integrated into TriNet.  We closed it in June of 2009, and it has been a terrific acquisition both from a financial standpoint and a cultural standpoint, as well as giving us a much broader market reach.  I have had tremendous support from the GA team, our board members and our founders as we have expanded and evolved the vision of TriNet, and it bodes well for the future of building the enduring the company that I came to TriNet to do. 

Regarding challenges, it was very significant to step into the role of CEO that Martin Babinec, TriNet's founder, held for the last 20 years.  We were working to get the company to a new and dramatic level of growth, to be a billion dollar company and a true industry leader.  And the challenge was to map out what that means in terms of hiring, mentoring and growing the right people;  formalizing processes such as procurement, hiring, cash management and reporting; and then building those processes to scale for a billion dollar company.  And while TriNet carried an excellent reputation, we were more of a regional player as opposed to national or even global, so our management and the GA team really worked to hone the proper strategy for that stage of growth.

GA:  Specifically, how has GA been most helpful to you as TriNet pursues its strategic vision?

Burton Goldfield:  The most prominent role that GA played recently was helping us successfully acquire Gevity.  The fact that last year was the tightest financial market in a lifetime made pitching the acquisition very difficult, but GA was at my side as a true partner, providing me a large number of world class resources in terms of legal, accounting and business strategy.  In addition, GA was great as an ongoing sounding board as challenges and opportunities arose related to integrating Gevity.  We had a large, significant vision, so having access to GA people who had great knowledge of the market was very valuable.

One thing that I think is different about General Atlantic is how they prepare companies for corporate governance and  provide support in growing market share through organic and inorganic growth.  GA continues to be a phenomenal resource with a shared vision for our continued growth and success.

GA:  As CEO, how do you make sure your organization is well-aligned with management's goals and the opportunities in the market?

Burton Goldfield:  Well, it all falls under the category of constant communications within the company.  I do a 10-15 minute podcast every week that is available to everyone in the company so that I can consistently express TriNet's vision.  I decide on a topic, and whether it has to do with clients, product releases, rebranding, or challenges in the market, the podcast goes out every week for everyone to hear.  In addition, I have an open door policy in which team members can come in and discuss ideas, concerns or successes any time they want.  Lastly, I hold small sessions with 20 or fewer members of management so that I can get direct feedback.  It's about harnessing ideas of the team, our clients, etc.

I really look at it two ways:  we have to capture the market today with a very tight focus on specific customer segments; but we also have to think about where we need to be three years from now.  I have to be able to process and articulate this vision on any given day, so making sure the free flow of ideas bubble up to me is crucial.

GA:  Acquiring Gevity, a public company, was a major step in your growth strategy. Not only did you have to integrate the firm but you went through a major rebranding too. What do you think was key to successfully handling so much change and growth at one time?

Burton Goldfield:  Yes, and at the same time, we completely restructured our go-to-market strategy, our field model and our organizational structure; and you are right, it is a lot to take on.  The reason we did that is simply that we believed there was a small window of opportunity to become a true market leader.  Each of those things was absolutely critical to becoming the company that we knew we should be.

Obviously, it starts with having the right people.  There's just no substitute for that.  But another part of it is focus.  What I do is make it clear to my executive team that I want to emulate, for example, the consumer successes of Apple and the customer interaction models of Amazon.  Let's analyze every possible aspect of customer interaction through all 121,000 employees of our clients, whether it's over the phone, the web, or through email, and if something isn't right then we need to figure out what it is and how to fix it.  We now get hourly feedback from our clients, so the feedback is immediate and there's just no hiding anymore. 

We also have a great set of business partners, and having their resources to help foster revisions for the future is invaluable.     

GA:  Could you talk a little bit about developing the TriNet team?

Burton Goldfield:  GA has been instrumental in helping us build our board and management team.  GA helped us to attract Wayne Lowell and Ken Goldman, who have been key assets to our board.  And of course GA's Dave Hodgson and Ray Bingham, who is now chairman, have been valuable voices on the TriNet board.  The key to our overall growth is the evolution and development of our leadership team, and the GA association continues to help us attract highly creative and focused executives.

TriNet has to consistently stay on top of all of the heavy lifting behind our client services, whether the focus is hardware, the internet, or telephone systems.  So GA also helped us hire Carlos Galarce as Chief Operating Officer, who has the large-scale experience to help integrate and reconfigure our infrastructure.  Attracting the right talent who can help us scale will continue to be a top priority for us.

GA:  If you were to advise another CEO in looking for an equity investor and partner, what would you say?

Burton Goldfield:  Number one is to make sure they understand your business.  GA knew the TriNet business inside and out, and that has been invaluable.  Number two is to understand the specific resources that an investor provides.  Is it merely financial, or can they provide industry, legal and accounting advice?  Can they help build your team?  And number three is to come to a common understanding about the ultimate objectives and time frames associated with your business.  For close to five years now, GA has been a strong partner in all of those respects.