Top teams and organisational performance

Research into organisational performance suggests that the top team has a significant impact.

The composition and functioning of the Top Team has been shown to account for up to 43% of the variation in profitability between companies. (1)

The Top Team is a better predictor of an organisation’s fate than the CEO alone. (2)

90 percent of investors think the quality of the management team is the single most important non-
financial factor when evaluating an initial public offering. There is a 1.9 times increased likelihood of having above-median financial performance when the top team is working together toward a common vision. (3)

References: 

1. Shipton, H., & West, M. A., Dawson, J., Birdi, K., & Patterson, M. (2006). HRM as a Predictor of Innovation. Human Resource Management Journal, 16. (1) 3 – 27.
2. Finklestein, S., & Hambrick, D. (1996). Strategic leadership – top executives and their
   effects on organizations. New York: West Publishing Company.
3. Keller, S., & Meaney, M. (2017, June). High-performing teams: A timeless leadership topic. McKinsey Quarterly.