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Synesis Research Results
The study has shown that:
- A company's profitability and growth depend heavily on its
Organizational IQ. The top 33% IQ companies on average achieved
Returns on Assets that were about ten percentage points higher
than those of their low-IQ peers. Similarly, top 33% IQ companies
grew revenues at double-digit annual rates while the average
growth rates of companies in the bottom 33% IQ rating were
stagnant or even shrinking.
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- The more dynamic the business environment of a company, the greater the importance of a high IQ. For example, as companies face shrinking product life cycles, the relevance of an effective decision architecture that enables fast decision-making processes increases sharply.
- The impact of a company's IQ on the company's overall financial performance increases as the company grows in size.
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