Q-Sort Research Findings: Summary Findings based on 2004 research

The aggregate data generally shows a favorable picture of the investment management industry leadership teams, and the results suggest that leaders among investment management TMTs:

• Give the interests of the group precedence (rather than personal interests)
• Have confidence in their ability to achieve the organization’s goals
• Work together as a mutually supportive team
• See problems from different angles and are willing to change course given new evidence

Several methods of dividing the sample group of 46 firms were tested to find clear differentiation between the decision processes. Of the various tests that were tried, there were three that showed the clearest differences:

• Age of firm (under 15 years vs. over 30 years)
• Ownership (majority employee owned vs. non-employee owned)
• Assets under management (under $20 billion vs. over $100 billion)

Separately from the pre-determined test groups, a method known as factor analysis was used to identify three other factors that served to differentiate between groups of firms. These were:

• Factor 1: open organizational culture; high confidence and persistence vs. narrow structure; cautious and yielding
• Factor 2: highly formal and rule-driven; low risk taking vs. relaxed with few rules; aggressive pursuit of ambitious goals
• Factor 3: open communication/debate; greater input from senior investment specialists on business decisions vs. controlled information flow and debate; less reliance on senior investment specialists managing the business

Ultimately, if applied broadly across the investment management industry, Q-Sort results may provide benchmarks when comparing individual managers to peer groups, or when observing specific managers over time. The information the Q-Sort provides should enable clients, consultants, and others to initiate more meaningful dialogue with managers and/or make more informed decisions about their managers.

Additional Q-Sort Research:

• To open a pdf of the Q-Sort Team's complete report, click here
• For additional Q-Sort research, click here