GSV's Four 'P's Framework
The most important of the Four Ps, the people running a company represent more than half of its value. When it comes to recognizing tomorrow's big market winners, there's no shortage of interesting ideas, but it's the quality of the leadership team that usually determines the level and pace of success.
Winners find a way to win. The goal is always to find a great leader at the head of a great team. Unfortunately, it's not always easy to tell the exceptional from the mediocre. It takes of lot of leg work. Many well positioned growth companies don't have long histories, but their people usually do.
Over the years, we've compiled a deep arsenal of telltale questions—about experience and reputation, long-term vision, employee turnover and developing talent, hiring and compensation philosophies, management equity, short- versus long-term focus, strategic strength, how the competition is viewed, and so on. A wide range of key considerations combine to form one critical, over-arching indicator.
Once a team establishes that it has the bright future that growth investors seek, evaluating how management executes against its promises and opportunities over time is the biggest key to finding the megawinners.