Does the top management team make a difference to the performance of a company?
Our first reaction would instinctively be – YES.
But then – why do we become so focused on the numbers and the short term returns?
The FRC in the UK Corporate Governance Code has included the need for the Board to look to the sustainable businesses and the focus on the longer term as the objective.
Some “balance sheet investors” look only to the numbers which has its risks and creates a short term focus within the company.
The attached article covers the key components of a valuable management team :-
- People orientation
All the above are values a Board should have as the unit that leads an organisation. Investors should consider these qualities and look to see aspects being present within a Board which will support its strive for continuous improvement.
A strong cohesive Board that can drive forward and handle crises will add value for investors.