Eliminating misfits in an organization has been shown to improve the return on assets (ROA).

The analysis by Burton and Obel demonstrates that situation misfits affect the economic result of a company negatively, meaning that companies with situation misfits will have a significantly lower increase in performance compared to companies with no situation misfits.

The research of Burton and Obel shows the following increases on assets return when misfits revealed by OrgCon are removed:

• Strategic fit - 3.3 %
• Contingency fit - 4.7%
• Total design fit - 10%

The economic effect of misfits was illustrated by a specific calculation made in one of the five companies analyzed with OrgCon. With a surplus before interest of more than DDK 39 m., the removal of the misfits would improve results by DDK 10 to 30 m. provided that a holistic approach is used to remove the misfits.

Source:
OrgCon - how to learn more about your company. March 2000. Dorthe Døjbak, Tanja Nissen and Børge Obel. Institute of Organization and Management. University of Southern Denmark, Odense University.