This article defines high performing operations (HPO) as an organization that continuously, consistently, and proactively solves problems related to execution, cost structure, and operations expertise in order to improve short-term performance while also building and sustaining organizational health over the long term. Research from McKinsey found that healthy companies generated three times higher returns than unhealthy companies from 2003 to 2011. The author asks readers if they agree with this definition of HPO and why building HPO is important for organizational survival and growth.

1. Bharat Desai
CEO & Founder
Shalshiv Associates

2. I will be writing a series of short articles
on how to build high performing
operations. Your comments,
participation in the discussion, and
feedback will be greatly appreciated.
This is the first article in the series.

3. Article # 1
What does High Performing Operations (HPO) mean?
Let’s begin with the definition of HPO:
It means the organization continuously, consistently, and proactively solves its Execution,
Cost Structure, and Operations Expertise problems to improve short term performance and
at the same time to build, monitor, and sustain the health of the organization. This is turn
means, it is creating a well-oiled organization that endures.
Health: The capacity to deliver – over the long term – superior financial and operating
performance.
*******************************************************************************
“Intellectuals solve problems, geniuses prevent them.” - Albert Einstein
*******************************************************************************

4. McKinsey April 2014 research by Aron De Smet, Bill
Schaninger, and Mathew Smith:
We discovered that from 2003 (when we began collecting data
on health) to 2011, healthy companies generated total returns
to shareholders (TRS) three times higher than those of
unhealthy ones.

5. Do you agree with the definition of HPO? If you do, it explains
why you want to build HPO: for your organization’s survival
and profitable growth!
If you don’t agree with the definition, how would describe
HPO?
In the next article, we will discuss the characteristics of HPO.

6. Bharat Desai
CEO & Founder
bharat@shalshiv.com
Shalshiv Associates
Building High Performing Operations
www.shalshiv.com