The evidence consistently shows that High Performance Organizations (HPOs) are significantly more efficient than non-HPOs.
Why is that so?
Many organizations are operated via a top down strategic framework, such as the Balanced Scorecard. This is, however, nothing more than a 180 degree view of the company’s strategic framework where business activities are prescribed by, and are in support of, the top down strategic perspective. We know from performance appraisal systems that a 360 degree approach is far more effective and informative than a 180 degree perspective. So, why not apply the same principles throughout the whole company/corporation in the strategy creation, development and implementation process?
The HPO framework is not singularly driven from the top down, it is driven by a 360 degree perspective where the most pressing questions often emerge from the market or community being served, that is, a bottom up perspective; needless to say, strategic decision making is heavily influenced by the top echelons of management who are the final arbiters of strategic priorities. Furthermore, departments, divisions and strategic partners/alliances must be on the same page in regards the strategic vision, strategic intent and achievement of strategically important outcomes. It must also be remembered that strategy implementation is influenced by the strategic alignment of supply and demand chain logistics all of which impact the capacity to deliver on the corporate promise.
Here are some of the elements an HPO:
- Focused and engaging corporate strategic intent (which is much more than just Vision, Mission, Goals and Objectives);
- Strategic leadership/followership (360 degree engagement);
- Evidenced-based decision-making;
- Attraction, recruitment, deployment and retention of high performance talent;
- Total quality orientation throughout the corporation;
- Dynamic-driven organization-wide learning culture;
- Engaged and committed supplier-employee-client community; and
- Key Performance Outcomes-driven individual HR responsibilities and corporate practices (Key Performance Outcomes as distinct from KPIs).
The most important component in achieving HPO status is alignment of the above elements into a coherent whole.
Strategic Outcomes Group (SOG) recently provided a Strategic HR/OD Advisory service to the Tax Department of a large South East Asian Government. That assignment focused on the transformation of a 33,000 population public corporation into a HPO.
What was most unique and effective about this assignment is the reformulation and integration of the in-place Balanced Scorecard metrics into the HPO-KPO framework. Proxy metrics from the BSC do not provide all that is necessary to drive a HPO. The KPIs need to be re-framed into KPOs and complemented by additional metrics that inform evidence-based decision-making with the 360 degree HPO framework. As a consequence, the HPO strategic model becomes highly effective in driving corporate efficiency and the delivery of profitable strategic outcomes.
The HPO framework is equally relevant and effective in either a Public or Private sector in the transformation of the corporation into a more efficient and effective organization.
Furthermore, research tells us that HPO organisations enjoy enhanced earnings and growth through more efficient use of capital (including human capital) and, most importantly, HPOs attract enhanced market support because they serve the market place in a far more engaged and engaging way over the longer term.
Are these the outcomes your corporation would benefit from and the community you serve value greatly?