Casual Friday

High Performance

What makes a high performance organization?

According to Coffman and Gonzalez-Molina (2002), the hope of sustained growth and real profit increase is in developing an engaged employee (p.14). This has been built on the Harvard's research into the customer service profit chain, where focus on the internal customer is demonstrating long term gain and exponential business growth. This contrasts the focus on external marketing and hones in on bringing out the best in employees. The result is higher energy, lower turn-over and a higher retention rate with customers. This connects with Schermerhorn et al (2003) who classify high performance organizations (HPO) as those that are "intentionally designed to bring out the best in people and create an extraordinary organizational capability that delivers sustainable high performance results." (p.22).

HPO’s have a well developed feedback loop and could be viewed as working well as an open system. Businesses like these have flexibility and an agility to be able to move with what the customer wants based on a good understanding of what their employees can offer. The emphasis on quality has gained quantity for many organizations like Nokia an INTEL who have been able to deliver excellent products that are relevant to the market while enhancing the performance and work life of employees. HPO's are moving beyond tradition and are experimenting with new ways by listening to their staff and customers. They are pioneering in the 21st century and leaving many traditional companies in their wake. The main components of a HPO according to Schermerhorn et al (2003) are: employee involvement, self-directed work teams, integrated production technology, total quality management and organizational learning (p.27). One of the obvious marks of an HPO is value of the environment and contribution to society as a whole.


References:

Coffman, C. & Gonzalez-Molina, G. (2002). Follow This Path: How the world’s greatest organizations drive growth by unleashing human potential. New York, NY: Warner Books, Inc.

Heskett, J.L., Jones, T.O., Loveman, G., Sasser Jr., W.E. & Schlesinger, L.A. (1994). Putting the Service-Profit Chain to Work. Harvard Business Review Article.

Schermerhorn, J.R., Jr., Hunt, J.G. & Osborn. R.N. (2003). Organizational Behavior (8th ed.). New York, NY: John Wiley & Sons, Inc.

posted by Mark Dowds @ Sunday, January 09, 2005