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- The building blocks of Outperformance. Three principles are all you need.
The building blocks of Outperformance. Three principles are all you need.
Have you noticed how some organisations do better by every measure? How they can offer great products or services, inspire fantastic loyalty from staff and customers and deliver impressive results?
At Investors in People, we call these organisations the Outperformers. When we redesigned our framework for 2015, we decided to focus on them. What makes them tick? And how can others become Outperformers themselves? In essence, we wanted to find out what lies behind their success and if it’s a magic formula, how can we bottle it? We decided to test the hypothesis that success isn’t a secret shared by an elite few – it’s a science. And now we've found the formula.
What’s behind success: Secrets vs Science
We tested a set of management principles common to high performing firms to find out whether a focus on these principles could really make a difference to performance. The analysis found that six factors were statistically significant in explaining improvements in performance and efficiency:
- Strong and inspiring leaders
- Having a set of strong values
- Recognising and rewarding performance
- Structuring work
- Delivering continuous improvement
- Adoption of sustainable practices
Breaking this down for the real world, we sought to examine how these factors could make a difference to real-life organisations. Looking at the relationship between efficiency (E) and people management (PM), we discovered The Power of Three.
E = PM3
As easy as 1,2,3?
Only if you get it right. In our full length report, "The impact of investing in people", we outline areas which offer the greatest returns for your business – broken down by size and sector – telling you exactly where to focus.