What is a high performance organization and what is high performance HR?
Let’s start with defining a high performance organization. A simple definition is a “Low- Cost, High Quality” provider. We have all heard that cliche before, but a truly high performing organization is delivering high quality at the lowest cost.
How does a high performance organization attempt to achieve those two goals? In a word (well, three actually): better, cheaper, faster!
Sounds almost silly, but think about it for a moment. This describes a learning organization that is constantly doing everything it does better, cheaper and faster.
- Better– in terms of measurable quality and satisfaction to both those receiving and providing care.
- Cheaper -reducing the costs of the service provided and increasing the margin for the organization.
- Faster – reducing cycle time which impacts both quality, costs and user experience.
What It Is
High performance HR is a model of human resources management that makes high performance organizations successful. It includes a much broader definition of the human resources role, scope, and function. Clear……as mud?
First, a high performance HR model does not define itself in terms of the standard HR functions: recruitment, benefits, compensation, employee relations, compliance, etc. Rather, they view the HR role as being the experts in the utilization and management of the organization’s human resources.
What It Does
Think of how this expands the role of HR in the organization.
High Performance HR:
- The CHRO role becomes comparable to the CFO role. One deals with all things financial, the other with all things people.
- The HR function owns better, cheaper and faster as strongly as every line department.
- The biggest expense in healthcare provider organizations is people costs. As the experts in utilization of human resources, HR develops programs to continuously lower labor costs without impacting employee satisfaction.
- HR “owns” the productivity management program. This includes developing standards, monitoring and reporting.
- HR demonstrates expertise in assisting managers with development of staffing models.
- Rather than focusing only on the employee side of the employment equation, HR also demonstrates expertise on the other half – the work itself. It is the in-house resource in work redesign and process improvement.
- HR demonstrates that the best way to reduce labor costs is not by management reducing the supply of labor, but rather by reducing the demand. This can be accomplished by altering the work itself.
- HR creates compensation and reward programs that are directly and measurably linked to achievement of better, cheaper, faster.
- Line staff are not viewed as “children” (with management as the parents), but as partners (whether this term is used or not).
- As a result, HR manages programs to hold employees accountable for better, cheaper, and faster.
- Conversely, as partners, HR designs and manages programs in which employees share rewards for improved performance.
- The training or staff development function is replaced by a Staff Effectiveness model as outcomes are emphasized over processes.