I just read a paper that attempted to determine the factors that create a high performance organization. They author's definition of high performance organization is 'an organization that achieves financial and non-financial results that are exceedingly better that those of its peer group over a period of time of five years or more, by focusing in a disciplined way on that what really matters to the organization'.
Based on the literature review of over 200 articles, the author categorized the factors that influenced success. Those organizations that were high performing had the following characteristics in common:
Autonomy
1. The organisation has a flat structure: there are few hierarchical layers.
2. In the organisation people of different organisational units can easily cooperate.
3. The management of the organisation allows experiments.
4. The organisation has an open culture.
5. In the organisation organisational members have the freedom to decide and act.
Continuous Improvement and Renewal
6. The organisation has adopted a strategy that clearly sets it apart from other organisations.
7. In the organisation processes are continuously improved.
8. In the organisation processes are continuously simplified.
9. In the organisation processes are continuously aligned.
10. In the organisation what matters to the organisation's performance is explicitly reported.
11. In the organisation both financial and non-financial information is reported to organisational members.
36. The organisation continuously innovates its core competencies.
37. The organisation continuously innovates its products, processes and services.
Openness and Action Orientation
12. Management of the organisation frequently engages in a dialogue with employees.
13. Organisational members spend much time on communication, knowledge exchange and learning.
14. Organisational members are involved in important processes. 26. Management of the organisation allows mistakes to be made.
29. Management of the organisation welcomes change.
30. The organisation is performance driven.
Management Quality
15. Management of the organisation is trusted by organisational members.
16. Management of the organisation has integrity.
17. Management of the organisation is a role model for organisational members.
18. Management of the organisation applies fast decision making.
19. Management of the organisation applies fast action taking.
20. Management of the organisation coaches organisational members to achieve better results.
21. Management of the organisation focuses on achieving results.
22. Management of the organisation is very effective.
23. Management of the organisation applies strong leadership.
24. Management of the organisation is confident.
25. Management of the organisation is decisive with regard to non-performers.
31. The management of the organisation always holds organisational members responsible for their results.
Workforce Quality
27. The management of the organisation inspires organisational members to accomplish extraordinary results.
28. Organisational members are trained to be resilient and flexible.
31. The management of the organisation always holds organisational members responsible for their results.
34. The organisation has a diverse and complementary workforce.
41. The organisation grows through partnerships with suppliers and/or customers.
Long-Term Orientation
38. The organisation maintains good and long-term relationships with all stakeholders.
39. The organisation is aimed at servicing the customers as best as possible.
41. The organisation grows through partnerships with suppliers and/or customers.
42. Management of the organisation has been with the company for a long time.
43. New management is promoted from within the organisation.
44. The organisation is a secure workplace for organisational members.
By learning and implementing these characteristics into your own organization you can improve your processes, leadership, employee engagement and customer satisfaction and become high performing.
To read the complete article:
deWaal, A. (2012). Characteristics of high performance organizations.
Journal of Management Research (4) 4, 39-71.