Financial outcomes continue to be the top way that leaders measure performance, with most leaders (59%) stating that consistently reaching or surpassing financial goals is a clear indicator of high performance.
But dig down deeper and you’ll find that today’s leaders are taking a more nuanced approach to performance, looking at more than just financial outcomes when they want to see how things are going—and what to do when challenges arise. The leaders we surveyed also considered productive teams (54%), the ability to deliver innovative products and services (48%), and whether the organization is growing ahead of its competitors (47%) to be top indicators of performance. Additionally, they cited team collaboration (44%) and a resilient culture (41%) as clear signals that an organization is performing at a high level.
Each organization will have its own definition of performance that aligns with its priorities. One example is the way leaders in different industries view the importance of different performance indicators.
Leaders in manufacturing prized collaboration (50%) significantly more than leaders in other industries, while healthcare leaders valued a resilient culture (48%) more than their peers. Leaders in the tech industry, meanwhile, valued innovation (54%) more than leaders in other fields.
The work setting also played a part in how organizations defined high performance. Hybrid workers who spent three to four days on-site were significantly more likely to credit innovation (51%) as a key indicator of high performance compared to workers who were fully on-site (38%).
“Companies that are flexible in how they operate and able to adjust quickly, putting in place the processes, policies, structures, and technologies to operate effectively in the hybrid world, also tend to be the most innovative companies I work with,” Patton says.
The Secrets of Success
The most important indicators of performance vary across industries, but all leaders understand that there’s more to success than just reaching financial goals.
Sweat the Hard Stuff
The most important drivers of high performance are also the hardest to master.
Use AI as an Accelerant
AI can help organizations leapfrog the barriers that slow progress toward HPO goals.
Double Down on Deep Collaboration
Leaders say they frequently work together, but relatively few engage in the difficult work of real partnership.
