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Long-Term Survival & Competitiveness – New Research (Part 4)
December 19, 2007

The new research results demonstrate a clear relationship between an organization’s overall Beat the Odds (BTO) score across nine core principles, and key corporate longevity issues such as employee retention, employee morale, industry rank, and financial performance.

In previous postings, I’ve shown the retention and morale graphs. Let’s take a look at how the data plotted for “likely financial performance.” For survey participants who indicated that their organization’s future financial performance was likely to exceed their corporate cost of capital, the BTO scores were significantly better (see Figure below). A similar pattern emerged for “recent financial performance.”



The research white paper has other graphs and analyses. So, if you like data, or graphs, you can download the entire white paper at: www.greybeardadvisors.com

What does it all mean?

Simply put, the survey’s results are a “wake up call” to organization leaders regarding the importance of continual diagnosis and attention to core principles. In the current, dynamic business environment, it is easy to become consumed with daily emergencies and managing complexity. In fact, as the survey’s results suggest (see earlier postings), most organizations are among the “walking wounded” long before their problems manifest themselves in their financial statements.

That is why the senior leadership of organizations must set aside time to focus on periodic and comprehensive health checkups for their organizations, and pay attention to core principles on an ongoing basis.

Posted by Robert A. Rudzki on December 19, 2007 | Comments (0)



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