The 5 Steps Towards a High Performance Organisation
Each year the Institute for Corporate Productivity publish their Market Performance Index. The index ranks organizations according to their performance in four key areas: market share, revenue growth, profitability and customer satisfaction.
It is inarguable that an organization’s very existence is dependent on consistent, positive, sustained performance that is generated from the collective activities of many individuals. Yet this is not apparent judging by the ways in which many companies execute—or fail to execute—their performance management (PM) processes. In high-performance organizations (HPOs), however, performance management is driven by a strategic purpose: to engage all of the organization’s talent in gathering momentum toward the accomplishment of its mission. This is why firms must use the same broad business lens through which they view the organization to focus in and examine individual performance.
High-performing organizations' leaders take five specific steps to develop those traits and produce outstanding results:
1. Provide direction by fusing strategic and tactical approaches to PM. 47% of HPOs use performance management to tighten strategic alignment between skills and business goals.
2. Encourage dialogue by teaching, facilitating and promoting effective PM communications. More than 2X the number of HPOs provide supervisors with training on giving/receiving feedback.
3. Promote inclusion by applying PM with a broad and inclusive brush. 67% of HPOs include board members in PM.
4. Ensure relevance by aligning and integrating PM with other organizational components. Over 4X the number of HPOs integrate performance management with workforce planning.
5. Tie PM to the mission by having leaders champion and actively participate in PM efforts.71% of HPOs say their leaders consider PM as vital to organizational success.
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