Featured Speaker: Wayne Borchardt
Abstract
Empirical evidence for the relationship between decision quality and company performance has been elusive. We now have a robust, statistically significant finding that shows what we all suspected: decision quality does indeed correlate with company performance.
PwC’s 28th annual Global CEO Survey was conducted in 2024 and collected the responses of more than 4,500 CEOs across all major industry sectors and all large countries.
The survey findings yield a strong connection between the profitability of companies and their mindsets and practices for strategic decision making. Specifically, a decision-quality index created from the survey data found that companies who score in the top quintile of the decision quality index have 30 percent higher industry-adjusted profitability than the others.
Although we cannot make a causal claim, these findings have implications for CEOs who are likely unaware of the mindsets and practices that are associated with better performance. Their leadership in instilling decision quality in their organizations might have profound effects.