Human Resource departments create value by improving business results. And Visionary Consulting has a well-developed understanding of how HR, as an internal performance consulting team, creates value within the context of organization-wide efforts. It doesn’t happen by chance. It is always the result of focused commitment to developing competent people, agile systems, and aligned direction.

The Performance Improvement Paradigm below illustrates our unique approach as we partner with HR to fulfill their value commitment.

Performance Improvement Paradigm 1. Developing Competent People 2. Building Agile Systems 3. Aligning Organizational Direction
Performance Improvement Paradigm

While an organization is a structure to conduct business, it is also a sophisticated system for creating value. Just how much depends upon three key performance-based criteria. We use these criteria in designing performance improvement solutions to ensure increasing and sustainable results.

3 Key Organizational Performance Criteria

1) Efficiency

How fast can an organization create value? It begins by examining its capability to maximize return on investment. For example, it is obvious that company A that achieves a 200% increase in profit is more efficient than company B that just achieves 100% increase in profit.

Efficiency is also an important criterion for evaluating the value an individual can create in an organization. How fast an individual get things done? How much an individual can achieve in a given amount of time?

2) Effectiveness

Focusing merely on increasing efficiency doesn’t guarantee you will achieve the desired results. Before solving problems around efficiency, we need to first answer the following questions:

? Is an organization moving forward in the correct direction?
? Does anyone’s work have positive impact on the desired business results?
? Is it doing the right things—versus doing things right—in order to create value? (“Doing things right” is useless if headed in the wrong direction.)

3) Capacity

How big is an organization? How many different products can an organization develop and manufacture? How many projects can an organization handle simultaneously? How big your territory is? How much the market share you have?

Answers to these questions determine how much value an organization can create—that is, how successful the organization will be.

Organizational Value-Creation Formula

Many executives use the term PRODUCTIVITY to describe overall organizational performance. According to our unique understanding, productivity means: Is the organization doing the right things fast?

The ultimate value an organization is able to create depends on both productivity level and capacity.

Problems with any of the three criteria will negatively impact the organization’s ability to create stakeholder value.

3 Key Approaches to improve business results:

As an internal business partner, HR departments create their value by embracing three key elements. When synergized, they become the critical driving force that optimizes the HR contribution to sustainable performance improvement.

Competent People
People deliver results. Better people deliver better results. Organizational achievement is simply the collective result of individual efforts.

People directly impact value creation.

Agile Systems
The organization as a whole is a system for creating value for key stakeholders, and the environment in which it operates is changing constantly and rapidly. Therefore, its systems—product development, sales and marketing, problem solving, talent development, execution, and even culture—must be adaptable to the changing landscape.

The agility of an organization impacts the bottom line.

Aligned Direction
An organization must be proficient at directing efforts. Is the work being done by departments, project teams, and individuals aligned with the vision, mission, and stated goals? If not, all attempts to create value will be in vain.

Across-the-board goal alignment is crucial.

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