High Performing
Organizations
J. Singh*
A tiny seed has the potential to grow into a mighty oak tree.
But not all seeds actually grow into big trees. Many that fall
on fallow ground wither and die. Even those that fall on fertile
soil are not guaranteed to survive. Many among them may
be ravaged by harsh weather conditions or by innumerable
‘enemies’ lurking around them. Only a few lucky ones take root
and eventually mature into full-grown trees that we so admire.
Organizations are no different. When formed, they possess
the genetic potential to grow into great institutions. There
are enthusiastic founders fired by their grand visions. They
carefully assemble teams of hand-picked experts in various
disciplines. Valuable capital is invested in providing them
with the wherewithal necessary for their work. Yet,only some
organizations manage to emerge as market leaders; others
either struggle to remain in the race or gradually fall by the
wayside.
What makes the difference between a seed that matures
into a mighty oak tree and others that do not? Likewise,
if all organizations have the ‘genetic’ potential to be high-
performing, why do many die an early death while only a few
become enduring, great examples? What accounts for the
eventual differentiation in their performance?
There is no hidden mystery in this question; the answer is
quite commonsensical. While all seeds have the same inherent
potential, it is the one particular seed that is well-nurtured
that is more likely to yield an oak tree. In the same vein, all
organizations may start out with similar genes; but it is the ones
which are managed better—especially the manner in which
people and physical resources are cared for—that emerge as
high-performing industry leaders. On the other hand, those
that are poorly managed waste their potential; they fall behind
and eventually fade away.
L&T | LDA | Journal of Management | Issue 5 | 2012 | 7
 Defining Characteristics of High Performing
Organizations (HPOs)
Each HPO has its own distinctive ‘personality’. Nevertheless, there also are some striking similarities among high performing
organizations. Their ‘common denominators’ include:

1. Consistent track record of superior performance. HPOs outperform their competitors not occasionally, but regularly.
They are like well-oiled machines churning out outstanding results year after year through the ups and downs
of business cycles.

2. Distinctive work cultures that attract the best of professionals to join them for long-term careers. They are
employers of first choice.

3. Ability to fully harness the innate potential that people bring along with them. In essence, HPOs possess the
magic of motivation. All categories of employees in them find their work challenging and meaningful; hence,
they commit their ‘life and soul’ to their work.

4. Extreme customer-friendliness and service-orientation. They recognize that their long-term well-being is directly
linked to customer satisfaction. Therefore, they spare no effort to delight their customers with their products or
services.

5. High agility and adaptability. They sense impending changes in their business environment and take timely
action to retain their competitiveness. They do not allow their success ever to lull them into complacency. They
renew, or re-invent, themselves as often as necessary to remain contemporary—or in tune with the changing
demands of time.

6. Bold enterprise. HPOs are entrepreneurial, innovative companies willing to bet on new ideas and technologies—or
ride new ‘waves’. They see opportunity in disruption.

7. Striving assiduously to develop a lengthy pipeline of leadership. They identify and groom potential leaders at
all levels. They take ample precaution not to become hostage to overbearing, larger-than-life ‘genius’ personalities.
Their performance is not hampered by shortages of leaders at any level.

8. Cultivating and nurturing a culture based on the non-negotiable principles of teamwork, equity, transparency,
justice, and shared leadership. Such a culture is deeply ingrained in their DNA. It is passed on from generation
to generation.

9. HPOs are acutely conscious of their responsibilities towards society. Rather than serve the narrow interests of
any particular group, they take care to conduct themselves in enlightened ways that enrich all stakeholders. They
adopt means that are environmentally sustainable.

10. Guided by an unwavering ‘moral compass’, HPOs stay away from questionable tactics. They adhere to their stated
value system and to generally accepted codes of ethics. Their corporate conduct honors both the letter and spirit
of the law.

How would you rate your company on each of these 10 dimensions?

You may indicate your responses using the following scale:
1 = Poor; 2 = Fair; 3 = Good; 4 = Excellent.
Then add the scores you assigned to the 10 dimensions.
The maximum possible score is 40. How does your score compare with it?

8 | L&T | LDA | Journal of Management | Issue 5 | 2012

Roadmap for Becoming High voluntarily to leave. Therefore, it must be done on the basis
of a careful analysis of costs, risks, and expected returns.
Performing: The key questions to ask before selecting anyone to join an
organization are:
How can an organization go from being ordinary to high
performing? Though there are countless ways in which • Does the candidate have the requisite academic creden-
improvements may be brought about, there are five ‘elemental’ tials required for the job?
areas that need most attention:
• Does the candidate have relevant work experience?
1. Human resources
• Is the candidate likely to be an effective team member?
2. Strategic choices
• Does the candidate’s personality and value system fit well
3. Efficiency of Implementation with the organization’s culture?

4. Effective leadership • Does the candidate have the potential to learn and grow
into a future leader?
5. Continuous organizational learning and renewal
Organizations typically spend a great deal
HR Initiatives: of time carefully analyzing alternatives
before they make even routine
Mindless repetition may have reduced it to an empty cliché.
investment or purchasing
Nevertheless, people are indeed the most valuable
decisions. Are they equally
resources of an organization. There is no limit to
careful before making
what they can do with their intellect, their skills,
hiring decisions? Or
their motivation, and the synergy among
do they recruit
them when they form a cohesive team.
hurriedly to
To derive maximum advantage out of somehow fill
human resources, organizations must first: v a c a n c i e s ? Ver y of ten,
compromises are made. There
Select well: There are only a limited number of roles in is a tendency to quickly settle
any team. If it is to win, these roles must be assigned to for passable candidates rather
the best (or most suited) candidates available. It can than search for the most
ill afford to carry someone who does not ‘pull his suited ones.
weight’. Therefore, there must be no compromises
with the criterion of merit.If, out of expediency, Socialize well: For
‘square pegs’ are selected to fill ‘round holes’, new recruits, their
the resulting mismatch will weaken the first entry into an
team forever. The qualified, deserving organization
members will be under extra is full of
pressure to compensate for the suspense.
shortcomings of an undeserving
colleague.

Selection is akin to making

a long-term investment.
Once recruited, a
person is likely
to remain until
re t i re m e n t—
unless he is
either dismissed
or chooses

L&T | LDA | Journal of Management | Issue 5 | 2012 | 9

It is akin to visiting an alien country. Everything appears strange.
There are new people in a new setting following their own
values, culture, policies and practices; there is a new job with
new expectations and responsibilities. All of these require
gradual familiarization. Until then, newcomers experience
psychological stress. They wonder if they are truly welcome
in the organization.
It is therefore essential that HPOs first make their new recruits
feel welcome and wanted. There must be well planned
programs to induct (or socialize) them into the organization:
giving them all the information they may need to feel more at
ease in their new environment; introducing them to the people
they will have to deal with most often; explaining the nature
of their tasks and responsibilities; imparting vital task-related
knowledge and skills; and, perhaps most important of all,
emphasizing that they are most welcome to approach senior
management for help whenever necessary.
When one is welcomed warmly, one feels less threatened;
one then tends to settle down with greater ease. Thereafter,
we can expect more out of newly recruited professionals.
Unfortunately, myopic management has little patience for an
elaborate socialization process. It is more eager to get work
out of them as quickly as possible. As a result, they are thrown
into their alien environment with little preparation. Only those
who are strong enough to fend for themselves survive; others
traumatized by the experience seek a quick way out.
Train well: This is the era of knowledge. As its frontiers are
pushed back by new discoveries, professionals run the risk
of being stranded with their outdated know-how and skills.
To remain competitive, they need to stay abreast with the
advances in knowledge—and acquire related skills.
While part of the responsibility for learning rests with individuals
themselves, organizations too must assume some of it. After
all, employees spend much of their adult life working in them.
This responsibility is fulfilled through continuous training and
development opportunities.
For HPOs, training is an act of faith. They are convinced that, over
a period of time, it sharpens the abilities of their employees,
makes them more capable of dealing with emerging challenges,
and enhances their productivity. Therefore, they invest in
continuous training even in tough times. Realizing that this
investment has a long gestation period, they are not impatient
for immediate returns. They are sure the rich dividends from
it will follow eventually.
Training in HPOs is systematic. They go through great pains to
provide the right training in the right way to the right person
at the right time. It takes a miracle to get four rights together!
10 | L&T | LDA | Journal of Management | Issue 5 | 2012
But they succeed because all levels of management—especially
the topmost layer—is deeply committed to training. Their
commitment goes beyond simply sanctioning money for it.
They invest their personal time in training and coaching their
juniors.
By contrast, run-of-the-mill organizations do not have the same
faith in training. If they spend on it at all, they do so only to
maintain a façade of being learning-oriented organizations.
Therefore, they spend on it only when there is surplus money
around. At the first sign of trouble, however, they pull back.
The only inference one can draw from their actions is that
they view training as an expenditure—not investment—with
uncertain returns.
Compensate well: The excellence of HPOs is dependent on
the contributions of talented professionals. To attract and retain
them so that they may lay the foundations of high performance,
it is essential to first offer them a competitive compensation
package. Being miserly in this regard is counterproductive. As
the tongue-in-cheek adage suggests, when you pay peanuts,
you only attract monkeys.
Compensating well does not automatically imply going
overboard to become the highest paymaster; that maybe
ruinous. What it does imply is that there ought to be some
parity in the earnings of similarly qualified professionals in an
industry or in a geographical region. It is a matter of strategic
choice what percentile of the comparative compensation range
to aim at. However, the attempt should be to compensate
well enough to be counted among the preferred employers.
Reward well: Rewards are the breakfast of champions.
They are great motivators. When one does well, one looks for
immediate recognition—and even tangible rewards. This is
basic human nature. To ignore it is fraught with danger.
Leaders in HPOs are fully conscious of the power of recognition
and rewards. They are quick to spot exceptional contributions
and express their appreciation. Such spontaneous recognition,
which costs nothing, is itself a very potent motivator. When,
over a period of time, consistently outstanding performers
are also rewarded in tangible ways, we derive the combined
effect of both psychological recognition and material rewards.
For recognition and rewards to have their desired motivational
effect, it is essential to take some precautions. Most important
of all, they must appear to be given fairly. The recipients must
be widely recognized as truly deserving candidates. If there is
any hint of subjectivity or discrimination, the rewards will lose
their impact; what is worse, they will provoke disappointment,
anger and envy among other employees. It also pays to be
consistent in the choice of achievements to recognize and
reward, and the quantum of rewards. Therefore, there ought
to be a clear policy for recognition and rewards.
Communicate well: Notwithstanding the high volume
of communication that seems to take place in organizations,
there is an intriguing ‘disconnect’ between management and
employees. Neither side is fully aware of the other’s goals, views,
or problems. So wide is the chasm that they often appear to
be from different planets. The primary reason for this malaise
is the poor quality of communication in every direction about
almost all important matters.
The hallmark of HPOs, on the other hand, is clarity about
important issues. This clarity is achieved through continuous,
relentless communication in all directions to ensure that there
is a common understanding of all issues by all who are involved.
With everyone on the same wavelength, united action becomes
so much easier.
Much of organizational communication tends to be top down
in direction. As a result, people lower in the hierarchy are
generally bombarded with official messages from the top; but
they are seldom allowed a voice of their own. Seniors either
do not consider it important enough to solicit their views, or
claim not to have enough time for doing so. In effect, juniors
are shut out.
A distinctive feature of HPOs is their genuine concern for the
feelings and opinions of all categories of employees. Not only
do they engage in official top down communication, they spend
a great deal of time and effort in listening to what people have
to say in return. This listening part of their communication
system plays a crucial role in shaping their organizational
strategy and policies. It also results in greater unity of purpose
and action.
Groom talent well: Employee attrition appears to have
assumed epidemic proportions universally. Blame for it is often
fixed on the fickleness of the new generation of professionals.
They are presumed to be unstable almost by nature.
The truth, however, is that the roots of high attrition can be
traced all the way to uncaring organizational practices. People
leave either because they are not treated well enough or
because they do not see a bright future for themselves.
HPOs recognize the importance of talent and, therefore, they
go the extra mile to nurture it. They spot individuals with
leadership potential early in their careers. Thereafter, they guide
them carefully through well-designed development plans. The
attention high-potential professionals receive in the process,
and the career progression that follows as a result, leaves them
feeling both wanted and as making satisfactory progress.
Grooming talented individuals to assume greater
responsibility is among the key requirements of
senior-level leaders in HPOs. Their own growth is closely and
directly linked to how well they groom the next generation
of leaders.
HPOs become employers of choice largely because
of their success in, and reputation for, continually
grooming the leaders of tomorrow.
There is no room in HPOs for so-called leaders
who deliberately abuse—and thereby
eliminate—promising professionals
who they perceive as threats to their
own power and control.
Build teams well: Synergy has a
multiplier effect. When capable individuals come together
and bond into cohesive teams, a magical process occurs;
their combined strength exceeds the sum total of what they
contributed individually.
The success of HPOs is founded on teamwork among their
members. They are astute enough to select qualified members
with complementary skills; they then focus on ways of creating
the psychological bonding characteristic of winning teams. In
order to do so, they emphasize the primacy of team identity
and goals over personal objectives, and establish processes
for working together effectively. To reinforce teamwork, they
reward members not only for their individual contributions
but also for their teamwork.
If, on the other hand, management attaches greater value
to individual excellence, we are more likely to see ambitious
individuals competing viciously with their own colleagues in
order to get ahead. Such internal competition stands the risk
of spinning out of control. When members of the same team
are encouraged to engage in cut-throat competition with each
other, the team is the biggest loser.
Strategic Initiatives:
Coupled with the appropriate set of HR initiatives, HPOs are
distinguished by their cogent business strategy. They take
stock of their internal strengths and shortcomings. They
scan the environment minutely to spot emerging business
opportunities and threats. They are fully aware of the various
interdependencies among their stakeholders. They keep a
keen eye on the moves of their competitors. At the end, they
visualize their desired future and then formulate an elaborate
action plan for getting there successfully.
Strategy formulation for HPOs is not a one-time academic
exercise. It is an ongoing process in step with the independent-
L&T | LDA | Journal of Management | Issue 5 | 2012 | 11
minded, erratic swings in their business environment. It entails
a host of decisions: choice of business, products or services,
technology, finance, markets, promotion, growth, human
resources, profits, and much more.
The acid test of the strategic choices that an organization makes
lies in the results that follow. They must enable it to ride the
next wave emerging out of the business environment. They
are wise choices when they take the organization from one
crest to another.
High corporate ambition marks the strategy of HPOs. They are
not content with mere survival, or with modest incremental
growth. Instead, they want to leave behind a clear imprint with
their achievements. They aim for leadership in whatever they
choose to do. This high aim is not born out of false bravado.
They back their ambitions with hard work and, more often
than not, prevail.
The real danger for organizations begins when they reach a
sought after strategic goal. The mood of celebration on their
success intoxicates them into complacency. Their thinking is
clouded by the illusion that their success is their birth right—
and hence their entitlement for life. Therefore, there is no need
to revise their strategy.
History, however, is replete with countless examples of highly
successful institutions coming to grief because the sand
underneath them slipped away. The tenure of leaders at the
pinnacle is slippery and tenuous. Therefore, they must be
alert enough to the ‘tectonic’ changes taking place and revise
their business strategies. It is only the nimble-footed, agile,
adaptive organizations that survive and retain their leadership
over long durations. They must keep their ‘radar’ switched
on at all times, and take appropriate action to defend
themselves as quickly as possible.
Effective Implementation:
It is not enough to dream and strategize. Steps must also be
taken to translate strategies into reality. While it would be safe
to assume that all organizations have good strategies to
begin with at least on paper, HPOs stand apart from their
more ordinary competitors because of their efficiency
in implementing what they set out to do. From the
outset, there is clockwork efficiency. Every team
has a clear idea of what is expected. They go
about fulfilling their responsibilities in the
prescribed time, within budgeted costs,
and meeting all performance standards.
There is high degree of coordination
among teams so that there are no
bottlenecks and costly delays
12 | L&T | LDA | Journal of Management | Issue 5 | 2012
anywhere. Their overall efficiency in implementing their plans
is the source of their superior results.
Contrast that with what typically happens in many organizations.
The strategy is not communicated well and, therefore not
understood well enough by those who have to translate it into
action. There is little follow-up and coordination. Haphazard
action dissipates organizational energy and resources. Poor
coordination creates bottlenecks that result in costly delays.
People commit errors that require rectification. Quality of
workmanship is below par. Such general inefficiency drags
overall organizational performance down.
Organizations that aspire to become HPOs must, therefore,
go a step beyond fancy strategy formulation. They must also
master the art of efficient implementation of their plans.
Effective leadership:
That leadership makes a great difference is a self-evident truth.
What is dismaying is the mounting evidence about the poor
quality of leadership to be seen in organizations, and in society
in general, these days.
HPOs are in a select class of their own because they understand
the importance of effective leadership. Therefore, they nurture
it with extreme care.
What is unique about their approach to leadership? They pay
special attention to:
Leader selection: The choice of who to designate as a leader
at any level is a critical decision. There is very little room for
making a mistake. If, by chance, a wrong person is chosen, he
will have a damaging effect on all who have to follow him for
as long as he remains in the role.
Leadership is first and foremost a matter of character. Only
those who view it more as a responsibility to shoulder than
a privilege to enjoy should be entrusted with it. People of
weak character are more interested in self-aggrandizement
and self-gratification.
In addition to personal integrity, potential leaders also
ought to possess:
a: Stamina and energy to drive the organization
even in tough times and against all odds. Those who
lack self-confidence and the perseverance to take on
daunting challenges head on can do very little to inspire
their followers.
b: Professional competence: Leaders should know enough
about the business to command the respect of their
 followers. They should have a consistent track record
of high personal performance.
c: People skills: Since leadership is all about inspiring
and taking followers along, it is imperative that potential
leaders should have high expertise in dealing with
people. Through their behavior, they should be able to
derive maximum advantage of the unlimited potential
that their team members possess.
Apart from these elemental requirements, there are many other
desirable leadership traits. The more such virtues one has, the
better. But even if some are missing, the damage is limited. By
contrast, however, if any of the elemental qualities described
above are absent, leadership is severely dented.
With genuine leaders at all levels, high organizational
performance is virtually assured.
Leadership philosophy: HPOs also share an overall
philosophy of leadership. All their individual leaders, regardless
of their position in the hierarchy, subscribe to the same
philosophy. The essential features of this philosophy are:
a: Inclusiveness and participation: Leaders in HPOs foster
a sense of belonging by including everyone, to the
extent possible, in decision-making. This is contrary to
the more normal practice where leaders decide and
expect their followers merely to carry out their decisions.
When team members are involved in decision-
making, they develop a sense of ownership. As a result,
they are significantly more committed to carrying out
decisions successfully.
b: Empowerment: Employees in ordinary organizations
experience debilitating control. They have little authority
and autonomy. HPOs, on the other hand, empower
their employees to decide for themselves how to do
their work to the best of their abilities. They are
given authority and freedom along with responsibility.
Such empowerment energizes them to deliver much
higher performance than is possible with control-
oriented top down micro-management
c: Equity and fairness: It is basic human nature to compare
the treatment one receives with the treatment meted
out to others. Therefore, in dealings with a group, it is
essential to maintain equity. In other words, parity must
be maintained between the contributions one makes
and the consequences one receives in return. No room
is allowed for favoritism or subjectivity of any kind.
d: Transparency: The work culture of many organizations
is clouded by a veil of secrecy around important events
and decisions. This heightens suspicion and
misunderstanding. Rather than allow such negative
feelings to arise, HPOs are far more open and transparent
in all that they do. They share as much information
as possible about all matters of general concern. When
people have the information they require, they have a
better appreciation of the actions of management.
e: Leader as catalyst: Leaders have a choice of strategies:
either use their official authority to push their followers
towards their goals, or pull them through inspirational
methods. The latter approach is similar to the effect
of a catalyst in a chemical reaction. It encourages
superior performance through inspirational presence—
rather than furious huffing and puffing, and screaming
at people.
In his best-selling Good To Great, Jim Collins has given
strong empirical evidence to support the catalytic
approach to leadership. The eleven great companies in
his study achieved their consistently outstanding
performance through systemic Level-5 leadership—
which is based on modest, self-effacing leaders
encouraging others to give off their best. Therefore, it
is really effective; it is not just empty preaching.
f: Ethics: Leadership in HPOs is not guided by expediency.
Instead, it follows unflinchingly its moral compass. All
actions have to conform to an acceptable code of
conduct—and must result in positive outcomes for all
stakeholders. Cutting corners is not allowed. In the
short-run, it may appear as if the organization is paying
a heavy price for its ethical behavior; but such losses
are more than compensated for in the long run.
Ethical behavior adds greatly to the image and credibility
of organizations. It also serves as an inducement to various
stakeholders to seal a lasting association with them. The value
of such lasting partnerships should not be underestimated.
Organizational Learning & Renewal:
One reason why experience is so highly valued in society
is that it results in new insights and learning which can be
applied subsequently to better cope with situations. If one
does not distil learning from past experiences, one is likely to
repeat the same mistakes one committed earlier. There would
be no progress.
The challenge for organizations is to consolidate the learning
of individuals into collective learning. A host of knowledge
management techniques have been developed in recent years
L&T | LDA | Journal of Management | Issue 5 | 2012 | 13
to facilitate this collective learning process. Assessing Organizational Preparedness
Given the turbulence in the business environment, What is your assessment of the way your organization handles
organizations are confronted with new challenges continually. the key requirements for becoming an HPO?
They may range from sudden changes in technology, customer
preferences, government policies, macro-economic trends, Please indicate your responses to the items below using the
competitor behavior, and political instability. They may require following scale:
novel approaches to overcome them.
1 = Poor; 2 = Fair; 3 = Good; 4 = Excellent
Organizations that close their eyes to such changes in effect
commit suicide. The external changes cannot be denied or Your
Item
reversed. They can only be adapted to. response
Employee selection
The longevity of organizations is directly related to how keenly
they learn from their experiences and from their observations Employee socialization
of the world around them. If, in addition, they are in the regular Employee training
habit of introspecting and questioning the continued relevance
Compensation
of old shibboleths, they are likely to apply their new learning
to discover new solutions to the challenges facing them. Rewards & recognition
Communication (including listening)
Long-living HPOs have been singularly adept at re-inventing
and renewing themselves periodically to be in better shape Grooming talent
to meet the challenges posed by the business environment Teambuilding
after a ‘storm’. They adopt new technologies and practices; they
Overall business / competitive strategy
enter new businesses; they experiment with new structures.
But they refuse to remain rooted to their past. Efficiency of implementation
Selection of leaders
Conclusion:
Inclusiveness & participation
King Solomon, considered the epitome of wisdom, reportedly
Empowerment
observed that there is nothing new under the sun. Everything
in the universe has always been around. All that changes is our Equity & fairness
awareness of them from time to time.
Transparency
Therefore, there is nothing new about HPOs. We may have just Leader as catalyst
lost our focus on them. All that is needed now is to rediscover
Ethics of leaders
the old principles and practices.
Organizational learning & renewal
All organizations aspire to become high performing
organizations. Unfortunately, they lack the discipline to Now please add all your responses.
succeed. They fritter their resources and potential away.
How does your total compare with the maximum possible
To go from being merely ordinary to being an HPO, management total of 72?
has to focus on a few selected areas that are commonsensical.
The gap between your score and the maximum possible total
There are no secret formulae.
indicates the scope for improvement.
This paper urges readers to assess their organizations against
What is your action plan for making this improvement?
the typical profile of HPOs—and critically review their key
processes. If they follow the suggested roadmap, they are *J. Singh is Professor of Organizational Behavior at XLRI Jamshedpur.
certain to be transformed into high performing organizations. Contact: jittusingh@xlri.ac.in

14 | L&T | LDA | Journal of Management | Issue 5 | 2012