High Performance Indicators


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High Performance Indicators

  1. 1. High-Performance Organizations <ul><li>Key Indicators </li></ul><ul><ul><li>LECTURE 2 (Supplement) </li></ul></ul>
  2. 2. Financial Performance & Shareholder Value Creation <ul><li>Achieves and sustains 25% plus growth in revenue and/or profits over a 5 year-period . </li></ul><ul><li>On the average, generates and sustains an annual return for shareholders of 2.0 times greater than the overall S&P 500 as a benchmark . </li></ul><ul><li>Consistently meets official revenue and earnings forecasts and estimates with minimal surprises and variances . </li></ul><ul><li>Effectively manages investor relations and communications . </li></ul><ul><li>Assets are fully deployed in a manner that optimizes their use and return to shareholders . </li></ul><ul><li>Consistently demonstrates that asset allocation and investment decisions are made with a clear purpose, distinct economic value proposition and with the best interests of shareholders in mind . </li></ul>
  3. 3. Strategic Positioning <ul><li>Demonstrates a commitment driven by a single or integrated set of strategic visions, focus or imperatives . </li></ul><ul><li>Achieves and sustains superior global market penetration and representation . </li></ul><ul><li>Extends and expands the enterprise through the selective and effective use of alliances . </li></ul><ul><li>Leverages information technology to increase market presence, customer reach and vendor relations . </li></ul><ul><li>Consistently creates new “markets” and opportunities through new business venues, products and organizational designs . </li></ul><ul><li>Consistently sets the standard and rules so other competitors must react, expend resources and counter . </li></ul>
  4. 4. Leadership and Innovativeness <ul><li>Actively demonstrates and exemplifies leadership characteristics . </li></ul><ul><li>Aggressively cultivates pluralism as a source of leadership and competitive advantage . </li></ul><ul><li>Creates leadership development opportunities through job rotation, enrichment and investment programs . </li></ul><ul><li>Demonstrates and promotes a culture of customer/client focus and service . </li></ul><ul><li>Practices long term succession planning and development for next generation leaders . </li></ul><ul><li>Consistently cultivates an environment of creativity and innovation . </li></ul><ul><li>Actively manages knowledge through the use of a knowledge architecture and KMP . </li></ul><ul><li>Fosters and encourages learning, probing, discovery and is tolerant of mistakes and setbacks . </li></ul><ul><li>Hires and nurtures highly talented employees . </li></ul><ul><li>Generates 30% of revenues from new product introductions . </li></ul><ul><li>Creates and sustains a collaborative working environment . </li></ul>
  5. 5. Governance and Social Responsibility <ul><li>Cultivates active and engaged board involvement. </li></ul><ul><li>Board has a vested economic and moral interest in the financial and social behavior of the organization. </li></ul><ul><li>Board demonstrates a commitment to strategic positioning and long-term competitive advantage. </li></ul><ul><li>Board governance is relatively open; board members are accessible to shareholders. </li></ul><ul><li>CEO reports to the board and board actively manages and evaluates CEO performance against strategic objectives and predefined operating results. </li></ul><ul><li>Board actively participates in setting the strategic direction of the organization. </li></ul><ul><li>Board aggressively acts on behalf of the shareholders as opposed to the CEO. </li></ul><ul><li>Demonstrates a significant financial commitment to the local economies and environments in which it does business. </li></ul><ul><li>Invests in the social structure of the local communities. </li></ul><ul><li>Actively manages its relationships with the local communities. </li></ul><ul><li>Sets and sustains a higher level of ethical and moral behavior. </li></ul><ul><li>Sets a standard for communicating with customers and the community on important matters. </li></ul><ul><li>Compensation practices and programs accurately reflect organizational performance and financial results . </li></ul>
  6. 6. Brand Recognition and Quality of Products <ul><li>Has a preeminent brand name and image. </li></ul><ul><li>Has rationalized its brand identity and image at the enterprise level. </li></ul><ul><li>Generates high consumer confidence from the brand. </li></ul><ul><li>Generates high consumer interest in the brand. </li></ul><ul><li>Consistently sets the highest quality benchmarks and standards relative to its competitors. </li></ul><ul><li>Consistently creates/generates a high-value image and acceptance among consumers relative to price and performance. </li></ul><ul><li>Practices successful TQM methods designed to continuously improve value, quality and performance . </li></ul>
  7. 7. High-Performance Companies… As They Compare…