Identifying linkages between the use of best practices and overall measures
of corporate performance is difficult. Studies of several hundred companie
s, 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 measure
d with an organizational IQ test, correlated positively with overall corpor
ate performance, leading to the conclusion that smart organizations perform
better.