TDI Global Inc - Solutions

By: Tdi Global  09-12-2011
Keywords: Corporate Governance

Building a Sustainable High Performance Institution (SHPI)TM

A Sustainable High Performance Institution (SHPI™) is one that consistently optimizes the use of its resources and thus delivers better results with minimal investment.

Current complex business environment, the dynamic needs of customers and employees, changing technologies and drastic changes in policies that affect business operations are making it impossible for poorly managed and marginally competitive organizations to succeed. Institutions need to ensure that they attain and maintain sustainable operation. A number of variables define a sustainable high performance institution. These include:

Environment: Institutions have to continuously adapt to the dynamic environment, identify and harness the opportunities it offers, proactively resist its threats and make reasonable critical assumptions about the future. This includes being sensitive to the evolving needs and perceptions of customers, staying ahead of the competition, understanding the technological and social changes, and proactively responding to the economic and political developments.

Strategy: This defines how an institution plans to create value at the financial level for stakeholders, at the customer level, at operational level and at the employee learning and growth level. There are two parts to the strategy. An organizational strategy is the personality of the organization and includes the vision, mission, values and guiding principles. The business strategy tells the organization where it is going and identifies the core competencies, objectives and key success factors or key performance measures.

Structure: Structure refers to how people are organized around the core business unit or process and relates to defining the coordinates of tasks, roles, responsibilities, reporting lines and relationships among people. A poorly defined structure often leads to duplications and possible lack of ownership of functions.

Systems: These are inter-relationships between tasks and activities, relationships between business units and the interdependencies of functions. The coordinating systems relate to information-sharing, goal-setting, performance feedback, etc. while the development systems address recruitment, selection, training, recognition, compensation, etc. Systems are standardized and cut across the entire organization. They are often owned by management or special support function.

Core Process: The flow of work as it goes through the organization. It is the sequence of events necessary to deliver a service or get a product out the door.

Culture: This reflects the organizations operational conduct. It includes the leadership style, employee attitudes and habits and management practices. Culture mirrors the true philosophy and values that the organization actually practices. It is a measure of how well an organization has translated its philosophy (organizational strategy) into practice.

Corporate Governance: This describes how an institution’s Board of Directors (BOD) or Board of Governors (BOG) discharges its oversight and stewardship responsibilities to protect the interest of the stakeholders. It includes the entire process of BOD or BOG composition, characteristics, process and evaluation. Sustainable institutions must ensure good corporate governance.

Results: Results define the success or health of an organization and is the starting point for understanding how well the organization is functioning. Results indicate where the organization is strong and what it needs to keep doing, as well as where it is weak and what it needs to change. They help focus on where the organization wants to go and how to get there.

TDI successfully applies its well-defined process to help leaders clearly stratify their institutions into these variables. TDI also helps these leaders to redesign and optimize each variable in order to achieve an integrated sustainable high performance.

Keywords: Corporate Governance