W h y s o m e c o m p a n I e s m a k e t h e
I n dust r y Performance Analysis
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| I n dust r y Performance Analysis In this analysis, we looked at the performance of the companies versus the performance of the industries. The purpose of the analysis was to determine whether the companies were in attractive industries at the time of the transition. We created spreadsheets that quantified each industry versus the company, to determine the relationship between the two. We compared each good-to-great company's industry relative to all other industries that appeared in the Standard 6 Poor's Analyst's Handbook fora period from the transition year to 1995. We used the following procedure Appendix 243 1. For each good-to-great company, determine all industries that are listed in the Handbook from the year of transition to 1995. 2. For each of these industries, use the total returns from the transition year of the corresponding company to 1995 to determine the percentage change in total returns fora period from the transition year to 1995. 3. Rank the industries according to their percentage returns over this period. ' Executive Churn Analysis This analysis unit looked at the extent to which the executive teams changed in the companies during crucial points in their history. Using Moody's Company Reports, we calculated churn in the good-to-great companies versus comparison companies Average percent of departures over pretransition decade. Average percent of departures over posttransition decade. Average percent of additions over pretransition decade. Average percent of additions over posttransition decade. Average total churn percentage over pretransition decade. Average total churn percentage over posttransition decade. Same analyses repeated out to 1998. Objectives 1. What is the quantitative difference in executive churn continuity, if any, between the pretransition and posttransition eras for the good-to-great companies 2. How do the good-to-great companies differ in executive churn continuity from the direct comparisons 3. How do the good-to-great companies differ in executive churn continuity from the unsustained comparisons C E O Analysis We examined a total of fifty-six For each set of CEOs during the transition era in all three sets of companies (good-to-great, direct comparison, and unsustained comparison, we did a qualitative examination of Appendix 1. Management 2. Executive persona. 3. Personal life. 4. What saw as their top five priorities as CEO. Also, for each good-to-great company, direct comparison, and unsustained comparison, we examined the CEO background and tenure. Beginning within place ten years prior to the transition year through 1997, we determined. Whether the CEO was brought in from the outside directly into the role of CEO hired as CEO. 2. Number of years of employment with the company prior to becoming CEO. 3. Age at the time of becoming CEO. 4. Start year and end year of tenure in CEO role. 5. Number of years CEO position was held. 6. Responsibility held immediately prior to becoming CEO. 7. Factors in selection of that personas CEO (why picked as CEO. 8. Education (especially study law, business-and degrees held. 9. Work experience and other experiences military) prior to joining the company. Download 3.69 Mb. Share with your friends:
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