The HPO Knowledge Center
For five years Dr. André de Waal MBA researched the factors that allow an organization to perform better.
In this section we describe the results of the five-year academic and practical study conducted by Dr. André de Waal, the difference between the HPO study and other methods of quality management, performance per branch and strategic improvement methods that are not distinguishing.
But when exactly is an organization high performing?
André de Waal’s definition based on the study is as follows:
"A High Performance Organization (HPO) is an organization that achieves better results than comparable organizations over a period of at least five to 10 years."
Copyright © Dr. André de Waal MBA, based on a study of 290+ studies and a worldwide survey among more than 2,000 organizations.
What does HPO status give for-profit and non-profit organizations?
The Center for Organizational Performance has discovered that “HPO status” is quite advantageous for organizations.
- The revenue of HPOs grows 4 to 16 percent (depending on the industry and the size of the organization) faster than that of non-HPOs
- The profitability is 14 to 44 percent higher than that of non-HPOs
- The ROA (Return on Assets) of HPOs is 1 to 12 percent higher than that of non-HPOs
- The ROE (Return on Equity) 9 to 25 percent higher than that of non-HPOs
- The ROI (Return on Investment) 15 to 26 percent higher than that of non-HPOs
- The ROS (Return on Sales) 2 to 18 percent higher than that of non-HPOs
- The TSR (Total Shareholder Return) 4 to 42 percent higher than that of non-HPOs
But HPO status is not only interesting to for-profit organizations. High Performing Organizations in the non-profit and government sector appear to be able to do more essential things with the same financial resources.
And it is not only the financial performance that appears to be continuously better than comparable organizations in the same sector over a period of five to 10 years. The study shows that the strategic performance of an HPO is significantly better than that of a non-HPO.
These organizations also appear to score higher as regards:
- Customer satisfaction
- Customer loyalty
- Employee satisfaction
- Quality + renewal of services/products (innovation!)
- Complaint handling
It pays to be an HPO!