In today’s fast-paced and highly competitive business world, companies are constantly striving to achieve high-performance levels. However, this is no easy task, and it requires a systematic approach that includes adopting certain principles that help to create a High-Performance Organization (HPO). We define an HPO as one where employees are happier and more productive and the business significantly outperforms the market. More specifically, HPOs rank among the 5% best places to work and are in the top 95th percentile among their industry peers for growth and earnings. In this blog post, we will discuss some of the key principles that companies can adopt to become HPOs.
- Clear Direction for Improvement: A clear Challenge, or direction for improvement, is essential for any organization that wants to achieve high-performance levels. It is important for employees to understand the company’s overall goals and objectives, as well as their unique role in helping to achieving them. This clarity helps to create a sense of purpose, focus, and direction that can lead to high levels of productivity and performance.
- Strong Leadership: Strong leadership is another key principle that is essential for creating an HPO. Leaders need to be able to inspire, motivate, and guide their employees towards achieving the company’s goals. They must be able to provide clear direction, make tough decisions, and foster a culture of accountability and personal responsibility.
- Employee Empowerment: Employee empowerment is another important principle that is critical for creating an HPO. Employees who feel empowered are more engaged, motivated, and committed to their work. They are also more likely to take ownership of their work and be more innovative in finding solutions to problems. As Daniel Pink suggested in his book, Drive, organizations must find ways to remove demotivators and create an environment where intrinsic motivation can flourish. Employees should be equipped with the tools and information to manage their performance autonomously instead of waiting for the opinion of their manager which can be immensely demotivating.
- Continuous Improvement: Continuous improvement is a fundamental principle of HPOs. Companies that embrace a culture of continuous improvement are always looking for ways to improve their processes, products, and services. They are not satisfied with the status quo and are always seeking to find better ways to do things. No one has the power to improve someone else; but everyone has the power to improve themselves. A thriving continuous improvement culture is one where everyone improves something important every day. Strategy should be translated into daily actions for improvement for all. Likewise, employees should be empowered and motivated to take action to achieve strategic goals.
- Data-Driven Decision Making: Data-driven decision making is another important principle that is essential for creating an HPO. Companies that rely on data to make decisions are more likely to be successful than those that rely on intuition or guesswork. Data provides a clear picture of what is happening within the organization and helps leaders make informed decisions. After each action for improvement, data can help validate that progress was made toward the goal, similar to a GPS navigation system. Although data is inherently a reflection of the past, it can also serve as an indicator for what is likely to happen in the future if action is not taken.
Check out this podcast episode on Creating a High-Performance Organization with Dr Martin Witt:
Creating an HPO requires a systematic approach that includes adopting certain principles. These principles include having a clear direction for improvement, strong leadership, employee empowerment, continuous improvement, and data-driven decision making. By adopting these principles, companies can create a culture that fosters high levels of productivity, innovation, and success.
These principles lie at the core of the Impruver High-Performance Organization System. Impruver has incorporated Agile Strategy Execution, which organizes strategic goals in sprints to drive focus and sense of urgency for action. It includes the tools for Autonomous Performance Management, which empowers employees to take initiative to improve their own performance and grow at their own pace. These two pillars are supported by a foundation of Daily Continuous Improvement, which engages everyone in improving something important every day.