Virtually all human endeavors involve team work to some extent. In sports, the application to team sports is obvious. Even in sports where the individual appears to be crucial, a team is still a major factor. For example, NASCAR drivers, no matter how talented, depend on the mechanics who set up their cars and the pit crews that get them back onto the track as quickly as possible. At the Iditarod, you can be the best musher in world, but you are literally dependent on your team.
Local sports fans may wonder why the Lions are contemplating making their quarterback the highest paid player in the NFL while the team continues to find new ways to disappoint their fans.
Team work is also essential for business. While the CEO may get the most credit and money, the success of the enterprise is, to a considerable degree, a function of the commitment and competence of the rest of the workforce. By the same token, a solid workforce benefits from a talented and charismatic leader.
Investors should carefully consider the potential impact of a material senior management changes. Well run, financially successful companies often have a CEO who has been in charge for a number of years and has established an effective relationship with the rest of the team.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA®