4 Ways You Can Turn Your Business Into a High Performing Organization

By Indeed Editorial Team

Published April 14, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Performing, producing and achieving more than other similar businesses can be an important goal for a company. A high-performing organization is a company that achieves both financial and non-financial results that are better than any other organization in its peer group. Learning more about high-performing organizations and their criteria can help you plan improvements for your business. In this article, we review what a high-performing organization is, what their success factors are and how you can turn your business into a high-performing organization.

What is a high-performing organization?

A high-performing organization is a framework that leads to a business performing well in comparison to its peers or competitors. High-performance within an organization means that the organization has sustained success via proper management decisions concerning hiring, marketing, selling and pitching. A high-performing organization has excellence in both its output and in the employees that work there.

Those within a high-performing organization are problem solvers, both within employee ranks and within management personnel staff. To perform better than any other peer within an industry, an organization has employees who know how to solve problems in response to stakeholder requests and market circumstances.

There are many other aspects that lead an organization toward becoming a high-performance one, including some of the following:


One aspect of a high-performing organization is that the company hires experts. This means that managers understand the principles of managing teams, while employees understand their duties exceptionally well. Those who hire within the organization understand how to administrate hiring campaigns with valuable resources from which to gather potential hires. They also have enough expertise to better understand how to properly use the resources that the company gives them. By valuing expertise in its employees, a company may hire better employees than its competitors, which may lead to higher profits.

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Another aspect that can help a business become a high-performance organization is its clarity. This means both clarity in the quality of communication between employees and the clarity of the business' mission, purpose and set of policies. The more clarity a business has in all of its aspects, the more effectively both employees and customers can understand and react to its statements. An employee can perform more effectively toward a policy if that policy is clear, just as a customer may buy a product if they more clearly understand the benefits it can bring to them.

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Businesses can become high-performing organizations if effective leadership standards are in place. With effective leaders in a business, an organization can work in a direction that progresses the company ahead of its competitors and make that progress with employees who understand and respect their leader. Good leadership requires many different aspects, including proper communication, empathy, planning, risk assessment and industry knowledge. Effective leaders can help encourage stakeholders to communicate with employees more frequently.

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Another aspect that can help a business become a high-performing organization is responding to feedback. Gathering feedback is important because it can help a business improve in all competitive areas, including sales, marketing and hiring campaign efforts. Businesses can gather feedback in many ways, including through surveys, customer response metrics and employee input. Listening to feedback and reacting quickly can help improve sales and strengthen the bond between employees and business leaders. Employees that feel heard may be more accepting of business or policy changes later.

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A high-performing business may have advantages over other businesses due to employee empowerment. Empowerment means that those outside of management have influence over the business' future direction. Giving employees more power to influence the place where they work can help them feel more included within the business and may even help them become more accepting of company policy changes that affect them.

Empowering employees can also help a company gain more overall perspective concerning operations. Employees have different views than management personnel and leaders, which may be valuable when considering how to improve the organization even further.

What are the benefits of becoming a high-performing organization?

There are many benefits that you can bring to your business by making it a high-performing organization, including:

Higher profits

One of the benefits of having a high-performing business is the increased profits. With more capable leaders, employees and efforts toward efficiencies, a business can have greater turnaround on customers and higher selling rates for products. A high-performing business can also improve its production output, generating more product than other competing businesses.

Merge opportunities

Another reason it can be beneficial to create a high-performing business is that high-performing businesses have opportunities to merge. As a business with higher performance rates than leading competitors, your company can merge with or outright buy other companies. This can help reduce competition, gain additional resources and reach more customers. Buying other companies can also help improve your business' regional and local influence by having locations in different parts of the country or in different countries altogether.

Increased prospects

Another reason your business can benefit from high performance is because you may have more prospects as the business owner. The larger your business is within your industry, the more opportunities you may have to expand into other industries. This can mean more stakeholder options or collaboration opportunities with other leaders in your own industry that you can use to expand or improve your business.

What are the success factors of a high-performing organization?

There are many factors that businesses succeed in to create the aspects necessary for a high-performing organization, which include the four below:

1. Management quality

In a high-performing organization, all levels of the organization, especially management, treat each other with respect and value loyalty and fairness throughout all of their actions. Managers strive to have both individual and general relationships with both employees and the employee group, treating everyone with equality and modeling good behavior to others. Each employee shows commitment, enthusiasm and proper work ethics within the business, working for its greater good while accomplishing their tasks.

2. Business orientation

Another success factor is to have reactive and encouraging business orientations. In a high-performing organization, leaders value the opinions of every employee by frequently encouraging communication and feedback. They allow for experimental policies and mistakes within the organization because within mistakes are lessons that the business can use to achieve higher prospects and profits. Both employees and management personnel are willing to take risks for the business' benefit and fully document their results so that business efficiency can continue to improve.

3. Employee quality

In a high-performing organization, management ensures that it creates a diverse and skilled workforce that recruits those with expertise in the industry. This is so that the business can detect problems before they happen or use worker incentives to solve issues as soon as possible when they arise. A high-performing organization hires creative employees who can help initiate solutions to complex problems in their departments. They train their staff to be flexible and hard-working so that the business can administer goals such as partnerships and long-term customer stakeholder projects.

4. Continuous improvement

A high-performing organization adopts business strategies that focus on simplifying processes and maintaining unique goals throughout its fiscal quarters. High-performing businesses strive for continuous improvement because excellence can help set a business apart from others. Continuously streamlining a process can help simplify instructions and increase profitability. A high-performance organization also measures and reports these changes to help document and study the results of industry decisions.

Tips for developing a high performing organization

If you want to help your business become a high performing organization, consider some of the following tips:

Hire experts

Experts within an industry, or those who are talented at what they do, can help your business reach higher profit margins. They can be either those with specialized training in an industry or employees with specific talents that make them valuable. If possible, consider hiring experts or talented leaders for your department so that you can help that department grow independently of your own leadership. If you gather hiring experts first, for example, those hiring experts can use their expertise to find talent in other areas.

Encourage open communication

Another way you can improve your business and help it become a high-performing organization is by encouraging open communication in as many ways as you can. Open communication can help make leaders more effective and encourage employees to communicate issues or positive aspects that they experience during work. This, in turn, can help generate feedback that can eventually help improve your business steadily.

Accept feedback

You can improve your business to help it become a high-performance organization by accepting feedback often. Feedback is what helps your business improve, whether you gather it internally through employees or externally through customers. Always making sure you have some sort of feedback gathering system open and ready for input can be a great way to focus on improvement measurements. It can also help provide actionable steps to take when improving your business.

Consult stakeholders

Another way you can work toward creating a high-performance organization is by consulting the stakeholders who your company works with closely. Stakeholders may work with other members of the industry or maybe even with your direct competitors, depending on the compliance agreements you have in place.

Consulting your stakeholders about the aspects of your business that you can work on can help bring some insights that your management team or anyone else within the organization may not be able to provide. While also bringing a unique external opinion to the group, this can also bring an expert's opinion to the organization, depending on the stakeholder's history with your industry.

Evaluate competitors

Another way you can help bring your business to higher profit margins is by evaluating your competitors' history and current actions in the industry. Learning what they've learned and what works or doesn't work for a given business can help you gather lessons without the losses that may come with them.

You can evaluate competitors within your industry by doing research, conducting interviews with business leaders or by researching the company's history in a more in-depth study. You can also study industry competitors by interviewing your employees closely, learning what organizations they came from or why they left previous jobs.

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