Benefits of HPO
Since the first publication of the HPO framework in 2006, more than 200 organisations worldwide have applied the learnings, with many further studies being based on it. This has made it possible to evaluate both the financial and non- financial benefits that applying the HPO framework can bring to organisations.
The HPO research shows that there is a direct and positive correlation between the 5 HPO Factors and organisational results, regardless of sector, industry or country, as shown in the table below. Literature shows that organisations that are high performing, outperform their peer groups by;
- Revenue growth + 4 to 16%
- Profitability +14 to 44%
- Return On Assets (ROA) +1 to 12%
- Return On Equity (ROE) + 9 to 25%
- Return On Investment (ROI) + 15 to 26%
- Return On Sales (ROS) + 2 to 18%
- Total Shareholder Return + 4 to 42%
Several HPO case studies give clear indications that the following outcomes are achieved by applying the HPO Framework.
- Greatly improved customer satisfaction and loyalty
- Increased employee engagement and satisfaction
- Greater innovation
- Improved reputation
- Improved staff recruitment and retention
- Positive mentality and renewed ‘spirit’
- Greater openness and trust both within the organisation and with partners
- More efficiency through improved focus and discipline
Using the HPO framework helps organisations to pinpoint their current status, strengths and weaknesses and provides clear indications and suggestions for areas that need to be addressed in order to become an HPO.