London, UK, June 2018: Atlas Copco and Volvo Group are the world’s best corporate decision-makers, according to the Crowe 100 Decision-Making Index and Report 2018.
The new research from international accounting network Crowe is the
first of its kind to assess strong, effective decision-making in
corporate leadership. By using objective indicators and subjective
analysis, it ranks decision-making at the 100 most profitable companies
globally according to four components, Growth, Diversity, Boldness and
Innovation, over a five-year period (2013 to 2017).
Volvo Group, which manufactures heavy equipment including trucks,
buses and construction vehicles, tied for highest overall place. Volvo’s
score is attributable to high scores across all four decision-making
categories, with increased market capitalisation and diversity in all
but one of the five years. Atlas Copco, which produces industrial
equipment, and is also based in Sweden, similarly scored highly in all
"One of the top challenges of
corporate leadership is strong and effective decision-making. More than
any other factor, it remains the key component to determining successful
companies and predicting future success.
"In making any significant decision,
all companies face a range of variables and carry a host of unforeseen
biases. By learning more about the process of decision-making, companies
can make smarter decisions and create lasting value.
"This report is an attempt to quantify the traits of quality decision-making in the context of corporate success."
David Mellor, CEO of Crowe Global
The report’s analysis of governing boards and C-suite executives
highlights the powerful decision-making advantages of a diverse
French real estate investment trust and Europe’s second-biggest
publicly traded mall operator Klepierre (ranked No. 8) was found to be
the most diverse company, with female executives and non-French
nationals occupying more than 36% and 80%, respectively, of the board
and C-suite in 2017.
French automaker Peugeot (15) also scored in the top range for
Diversity and Growth. Having increased the gender and general diversity
of its board each year, it also had the largest growth in market
capitalisation over the five-year period among all consumer automakers
in the index.
High-ranking General Motors (39), BMW Group (52), UnitedHealth Group
(36) and Johnson & Johnson (39) were also found to have high
diversity percentages owing to a large presence of female members on
Overall, the Crowe 100 found that many companies increased the
diversity of their boards and C-suites over the five-year period
studied. Diversity initiatives aimed at increasing female representation
in corporate boards and C-suites may have been successful in
instituting boardroom representation but have not balanced the scales,
as women comprised an average of 17% of these positions at the end of
“Business leaders are required to make
decisions on a daily basis but really understanding the process and the
variables of significant decision making can differentiate its
effectiveness. This report looks at the art of making such decisions and
companies that have done just that.
“In the UK, Crowe celebrates its 175th
anniversary this year and over the decades our readiness to help people
and businesses to make smart decisions to realise their success and
create lasting value has always been at the heart of what we do.
Nigel Bostock, Chief Executive of Crowe UK
The 10 largest companies on the Crowe 100 by 2017 market
capitalisation, Apple (3), Toyota Motor (52), Johnson & Johnson
(39), UnitedHealth Group (36), Cisco Systems (5), Boeing (39), Medtronic
(3), Lockheed Martin (15), Daimler (45) and Airbus (77), averaged one
and a half points higher in Boldness and almost two points higher in
Innovation than the smallest 10 companies by market capitalisation in
the index. These largest companies also scored higher on average than
the top 100 as a whole.
This correlation highlights the important relationship between size
and manoeuvrability, as the largest companies often benefit from
economies of scale and their roles as trendsetters but must also
maintain increasingly bold and innovative actions to sustain their
places in the pack. In many industries, this has resulted in a flurry of
acquisitions or the purchase of leading properties.
The Crowe 100 has a wide geographic distribution, with 33 of the top
100 companies headquartered in the United States, 16 in Japan and 13 in
China. Other locations home to strong decision-makers were Hong Kong,
France and Germany, with 8, 7 and 4, respectively.
Geographic trends in the Crowe 100 highlighted regional variances,
with Chinese companies scoring higher on average for market
capitalization growth compared to American or Japanese companies.