Outlook Journal, October 2004
A year ago, in the October 2003 issue of Outlook, I invited readers to join us as Accenture embarked on an intellectual journey to explore the concept of high-performance business. The primary vehicle would be a major companywide program of original research, and over the ensuing 11 months Outlook has marked the progress of this journey with nearly two dozen articles, including eight in this issue, that have documented what we have learned about high performance in both the private and public sectors.
We began with a number of tentative assumptions based on preliminary research and a wealth of practical experience working with clients. As we tested these initial hypotheses through further research, our thinking evolved and began to coalesce into specific conclusions about the characteristics of high- performance business—the importance of mastering core competencies (Outlook, June 2004), for example, and the vital role played by what we came to call "performance anatomy".
There were broader lessons as well. Among the most important, says Tim Breene, Accenture's group chief executive for management consulting and the company's chief strategy officer, is that "context is everything." Research confirmed the validity of our industry-focused approach to performance. Notes Breene: "We found that comparing high-performance businesses to industry peers yields more practical, solutions-oriented insight than the more general, one-size-fits-all frameworks traditionally used in this kind of exercise."
Our research, in fact, began more than a year ago. Approaching high performance methodically, in a relatively decentralized manner and at a fairly high level, gave Accenture professionals the time and perspective to recognize patterns as they slowly emerged. Says Breene: "This has allowed us to speak broadly and in depth about what is important and groundbreaking without oversimplifying an inherently complex subject."
There were some surprises. Our ongoing research suggests that while our basic methodology— identifying high performers according to three-, five- and seven-year total return to shareholders—was a useful starting point, it may have been too limiting. "We have come to believe that the true measure of high performance is the ability to outperform competitors and reward shareholders consistently, across several business and industry cycles," says Breene. "Those time frames will vary depending on the industry. We have adjusted our approach and will continue to do so as we learn more."
But perhaps the most exciting outcome for Accenture is the impact the program is having on our business. According to Breene, "There is real momentum building around high-performance business. Because the program has put an even greater premium on new thinking, we've seen an extraordinary surge in the exchange of ideas throughout the company. People are realizing how critical high performance is to our clients, and that everyone needs to own and understand the concept."
The journey continues.
David Cudaback
Editor-in-Chief
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