High Performance Organization -
Beyond Performance

High Performance Organization

The capability of a business to repeatedly develop profitable products – that do well in the marketplace – is the most important characteristic looked for by investors.   Most firms fail within 20 years. And, only 1/3rd of “great” companies are able to maintain the greatness that made them successful in the first place.  Up to 80% of the value of a company is based on whether or not investors have confidence that a firm can generate profits in the long-haul.

After surveying 6,800 CEOs and 600,000 people in 500 organizations over a decade, and after reviewing 900 books and journals, McKinsey & Company’s senior partners Scott Keller and Colin Price produced what can be called the “organizational health” framework.  The authors define “organizational health” as the “ability of an organization to align, execute and renew itself faster than the competition so that it can sustain exceptional performance over time.”

It is not enough to focus on short-term financial measures. The ability to adapt to new markets trends is essential.  The authors state that businesses that concentrate on their organization’s health are nearly 3 times more successful than those that just focus on numbers.

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High Performance Organization -
Beyond Performance

Highlights by David Willden