HPO Framework
- Are the HPO factors in fact nothing more than open doors?
- The 5 HPO Success Factors
- Management Tools that will not improve your long-term performance
- Differences between HPO and Good to Great, Six Sigma, Balanced Scorecard, GPTW and EFQM model
- The added value of the HPO framework
- Academic Responsibility
- High Performance Partnership Research
What is the HPO Framework?
The HPO Framework is a conceptual, scientifically validated structure which managers can use for deciding what to do to improve their organizational performance and make it sustainable. It isn’t just a set of instructions or a recipe which can be followed blindly. Rather it is a framework that has to be translated by managers to their specific organizational situation in their current time, by designing a specific variant of the framework fit for the organization. This is bad news for bad managers, as the HPO Framework doesn’t provide a blueprint. It is however good news for good managers, as they can put in their own experience, expertise and creativity while transforming their organizations into HPOs.
What are the most important success factors to ensure better long-term performance?
There are organizations in every sector that perform better than others, organizations where you would work without hesitation and that are at the forefront in innovation. These organizations do not perform better because they invest more than other organizations in the sector or because they have implemented a new software system. Nor do these organizations owe their success to reorganizations or cleaner bathrooms. Our endless curiosity is focused on those elements that contribute to long-term excellent performance. This curiosity was the reason we embarked on a five-year scientific and practical study into High Performance Organizations (HPOs).
To determine what makes an organization a High Performance Organization, 290 international studies were examined that were conducted over the past 30 years in this area. The most common results were then tested in a global study (50 countries) among 1,470 profit, non-profit and government organizations to determine the most important factors. The results were obtained in June 2007. There are five success factors (divided into 35 HPO aspects) that have a direct link to the long-term success of an organization.
These five HPO factors give organizations in all sectors a focus for improving their performance.
Definition of a High Performance Organization (HPO):
"A High Performance Organization is an organization that achieves financial and non-financial results that are exceedingly better than 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."
Source: Dr. André de Waal MBA - HPO Center
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.
|
Performance |
HPOs versus non-HPOs (in %) |
|
Revenue growth |
+ 4 to 16 |
|
Profitability |
+1 4to 44 |
|
Return On Assets (ROA) |
+1 to 12 |
|
Return On Equity (ROE) |
+ 9 to 25 |
|
Return On Investment (ROI) |
+ 15 to 26 |
|
Return On Sales (ROS) |
+ 2 to 18 |
|
Total Shareholder Return |
+ 4 to 42 |
In the area of non-financial performance HPOs repeat this feat, they achieve much higher customer satisfaction, customer loyalty, employee loyalty, and quality of products and services than their less able counterparts.
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!
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