(Click for video linked to a searchable transcript of this Mad Money segment)
Whenever Jim Cramer does homework, he always researches the effectiveness of the management team. The Mad Money host believes the impact on the company and ultimately share price is enormous.
"But it's not easy to quantify, so it often gets short shrift on Wall Street, where the analysts prefer to focus on things they can put a number on," Cramer said.
To illustrate great management and great execution Cramer said look no further than Krispy Kreme and the leadership provided by CEO Jim Morgan.
Before Morgan, Krispy Kreme was struggling with Street skepticism created by accounting issues and commentary in which the company blamed the Atkins diet for turning its customers against donuts.
"Eventually, it became clear that Krispy Kreme had expanded way too rapidly and the stock went into free-fall," Cramer explained.
Then, in January of 2008, Krispy Kreme put Jim Morgan in the corner office.
"Morgan is a guy with extensive experience on Wall Street, including turnaround experience," Cramer said.