Smart Organizations Perform Better

Melinda Gurman

Melinda Gurman

02-02-12

Identifying linkages between the use of best practices and overall measures of corporate performance is difficult. Studies of several hundred companies, however, show that underlying cultural and organizational patterns lead to effective implementation of many best practices, which the authors call the “principles” of a smart organization. These patterns, which are measured with an organizational IQ test, correlated positively with overall corporate performance, leading to the conclusion that smart organizations perform better.

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