Public Company Pressure for Results

This numbers-driven public company had had a good ride. Year after year they had beat their budget and delivered growth to their shareholders. But they were seeing more and more competition from Asia. They felt they needed to dig a little deeper to stay on top of their game. And the numbers weren’t telling them the full story about how to sustain and continue to build earnings.

They commissioned an IC Rating™ to get behind the numbers. The overall findings were good. What was striking, however, were the variations in the ratings by different groups. Some top managers had a very clear idea of where they were going, but others in the top team as well as the rank and file didn’t feel that there was a strong vision or mission. Human capital development and management were also seen as very inconsistent. Finally, significant weaknesses were seen in the company’s external networks—they weren’t taking advantage of clear opportunities with potential partners in areas such as innovation, supply and sourcing. These findings showed that there was, indeed, risk that hadn’t yet shown up in the numbers.

Bottom line: intangible assessment can be a leading indicator that helps address problems before they affect the financial performance of a company. In this case, management has worked to tune their big picture message—and made sure it gets shared throughout the whole company. They have also taken steps to shore up their human resources management. The network weaknesses will take a little longer to address—but offer the kind of upside that a public company needs. The pieces are in place to continue their journey from “good to great.”

ICM Concept


IC Rating

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