Corporate IQ Optimization as a Mitigation Strategy Against Enterprise Disconnect Case Studies from the Energy Business

Ruud Weijermars
A high Corporate Intelligence Quotient (IQ) is crucial for survival in any business. In this study, the Corporate IQ concept has been applied to assess the specific cognitive abilities of energy organizations. The IQ test results confirm that international oil companies (IOCs) lead the industry with best practice as reflected in high Corporate IQs. It takes genius to win the race for access to ever more complex oil and gas prospects. However, the building of enhanced Corporate IQ by organizational learning has now also been taken up successfully by several former national oil companies. Getting to the best oil and gas prospects first and developing these with positive margins means a company must outsmart its oil and gas rivals. If such industry leaders succeed, other companies run a risk of lagging behind. Locally operating oil and gas companies typically lag behind and run a high risk of enterprise disconnect. A deterioration of cash flow is a tell-tale sign of enterprise disconnect from its business environment. What hallmarks the top management of failing companies is a persistent neglect of warning signs and undue risk taking. In contrast, the common denominator of those firms who timely recognize and avoid such mishaps is adeptness to change and rapid organizational learning.
Energy Business; Corporate IQ; Organizational Learning; Competition; Corporate Governance; Change Management
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