High-Performing Organizations

The Institute for Corporate Productivity (i4cp) has a nice article on what separates high performing organizations from low performing ones. i4cp’s research consistently indicates that companies that excel in the following five domains are typically high performers:

Note: Each point starts with i4cp’s research & wording, followed by my comments & analysis in italics.

1. Strategy

High-performing organizations have strategies that are more consistent, clearly communicated and well thought out. They are more likely than other companies to say that their philosophies are consistent with their strategies and their performance measurements mirror their strategies.

I’ve discussed before about John Kotter’s 8-Stage Change Process, one of which is developing a vision and strategy for your organization.

2. Leadership

High-performing organizations have leadership that is clear, fair and talent-oriented. Those leaders are more likely to promote the best people for the job, to make sure performance expectations are well known and consistent with the strategy, and to be committed to developing their people.

Gary Yukl (2010) in “Leadership in Organizations” shares 10 essences of effective leadership. Among these, Dr. Yukl says some effective leadership functions include developing and empowering people, promoting social justice and morality (the idea of fairness & compassion), and creating alignment on objectives and strategies.

3. Talent

There is a commitment to the right talent within the organization, and while employees are treated as unique individuals, the organization takes a holistic approach to managing and making decisions based on data-driven information. This begins with a strategic approach to workforce planning. It entails looking at the organization from an outside-in perspective that identifies the business model components and areas that drive value and then determines what the organization needs.

It’s not surprising research has found that staffing practices are related to organizational performance (Landy & Conte, 2007).

4. Culture

The culture is strong in all the right ways, and employees are more likely to think the organization is a good place to work. Employees not only adapt well to change, they embrace it. High performers also emphasize a readiness to meet new challenges and are committed to innovation.

In “Implementing Change and Overcoming Resistance,” I talked about the culture within an organization. Organizational culture has a strong impact on employees, and in some cases the leaders.

In fact, with older, more established organizations, the organizational culture affects the leadership team rather than the other way around (Yukl, 2010).

5. Market

High-performing organizations have a strong market focus and go above and beyond for their customers. They are organized internally around what’s best for the customer, they think hard about customers’ future and long-term needs, and their strategy is based on customer data. And they are more likely to see customer information as the most important factor for developing new products and services.

In an earlier post titled “3 Tips on Leadership,” I shared sage advice from leadership expert, Warren Bennis. Dr. Bennis says that leaders need to have contextual intelligence. That is, they need to understand their own organization (from the inside out) as well as the larger business industry.

References

Bielaszka-DuVernay, C. (2009, April 13). Avoid mistakes that plague new leaders: An interview with Warren Bennis. Harvard Business Review. Retrieved from http://hbr.org

Institute for Corporate Productivity (i4cp). New i4cp Study: The Five Domains of High-Performance Organizations. Retrieved from http://www.pr.com/press-release/206443

Landy, F. J. & Conte, J. M. (2007). Work in the 21st Century: An Introduction to Industrial and Organizational Psychology (2nd Ed.). Malden, MA: Blackwell Publishing.

Oakes, K. (2010, January 29). The Five Domains of High Performance. Retrieved from http://www.totalpicture.com/shows/trendwatcher/kevin-oakes-high-performance.html

Yukl, G. (2010). Leadership in organizations (7th Ed.). Upper Saddle River, NJ:
Prentice Hall.

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