If financial organizations had abided by the HPO Factors, we would not have today's credit crisis
(MMD Newswire) December 19, 2008 -- Five years of scientific and practical research resulted in the formation of the most important HPO guidelines. The objective was to give managers the knowledge and opportunity to implement targeted measures in order to allow their organization to develop into a High Performance Organization.
Professor Andre de Waal will be expanding his in-depth research in Europe, Asia, Africa and South America to the United States. This study provides a new focus for organizations in the current economic situation. If financial organizations had abided by the HPO Factors in De Waal’s study, we would not be experiencing today’s credit crisis.
A brief look at Professor De Waal’s credentials:
• Professor De Waal is affiliated with the Maastricht School of Management, a Business School that focuses on emerging markets, and the Free University of Amsterdam.
• Around the world he is recognized as one of the most influential and innovative thinkers in the field of performance management.
• In 2008 he completed a five year, worldwide study of success factors in a High Performance Organization. This scientific project comprised 289 worldwide studies of excellent performance. Another 2000 profit, non-profit and government organizations throughout the world were also surveyed based on the HPO questionnaire.
• The academic study was reviewed by Cranfield University (UK) and defended at a number of academic meetings, including IMD (Switzerland), European Academy of Management and British Academy of Management.
• The study identified five crucial factors that directly influence an organization’s financial and strategic performance.
• Many prominent organizations are utilizing the results and recommendations of the study, including IKEA International, Air France KLM Cargo, Unilever and Amanco Plastigama.
• In the United States, Professor De Waal will be meeting with organizations including the Umpqua Bank and Microsoft.
• Background information on the High Performance Organization project can be found at: www.hpocenter.com .
Professor De Waal will be visiting the United States in the week from 12 to 16 January. On several occasions he will be available for interviews. If you would like to interview Professor De Waal or would like to receive more information about the HPO study, please notify Marco Schreurs (schreurs@hpocenter.com).
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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!
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