The Link Between Profits And Organizational Performance
Source: McKinsey & Company
To be sure, many factors drive financial performance, and evidence of correlation is not evidence of causality. Therefore we have intentionally declined to isolate the financial impact of organizational performance on individual companies. Still, the correlations we identified are striking, as they strongly suggest that companies pay a financial penalty for weak organizational performance and that strong organizational performance reaps financial dividends. Improving a company's organizational capabilities is a complex challenge.