What High-Performing Organizations Have in Common: Lessons for Any Leader
What sets high-performing organizations apart from those that struggle to engage employees and achieve their goals?
Every leader (well, almost every — there are some exceptions to everything! 😁) wants their organization to thrive, but what separates high-performing organizations from those that struggle?
As someone who loves looking at data, I find this question to be intriguing!
Our Org Effectiveness Index study looked at what employees and leaders say makes an organization truly effective, and the results were eye-opening. Across a wide swath of industries (including profit and non-profit), the organizations that performed the best all had some key things in common.
So let’s explore some data-backed principles of what leaders of effective organizations do.
They build a strong, healthy culture
Culture isn’t just a “nice to have” — it’s a significant factor in where people choose to work and whether they stay. In fact, 50% of working Americans would take a lower-paying job if it meant working somewhere with a great culture!
Wow, that's half the U.S. workforce. It's a bit mind-boggling how big of a difference a strong culture makes!
When employees feel valued, respected, and part of a positive work environment, they’re more engaged, productive, and committed. You hear things like, "I love working here!" They tell their friends, and more high-performers join.
But when culture is toxic or leadership is disconnected, frustration builds, turnover increases, and performance suffers. Morale is low and people leave. And that impacts the ability of the organization to get things done and achieve results.
The best organizations don’t leave culture to chance. They actively shape it by listening to employees, reinforcing shared values, and making sure people feel heard and supported.
Leaders who prioritize culture create workplaces where people actually want to be — and that translates directly into better results.
✳️ Leader’s Takeaway: Regularly assess your organizational culture. Is your workplace culture something that would make people choose to stay, even over a higher salary somewhere else? If not, it’s time to take a closer look at how your culture is shaping the employee experience.
2. They communicate openly and often
No one likes being left in the dark — especially when it comes to their job.
High-performing organizations make sure employees know what’s happening, how decisions are made, and how their work fits into the bigger picture.
The study found that 31% of employees say their manager doesn’t clearly communicate how their work connects to company goals.
That’s nearly one in three employees who are basically working blind — just going through the motions without really understanding how they contribute!
When communication is unclear, people waste time guessing, making wrong assumptions, or doing unnecessary work. It’s soooo frustrating when you’ve worked hard on something — just to find out that your colleague has done the exact same thing.
But when leaders communicate regularly and clearly, employees are more engaged, teams work more efficiently, and the whole organization moves in the right direction. Communication is like the oil that enables the gears to turn smoothly. Take away communication, and you end up with friction — and even damage!
✳️ Leader’s Takeaway: Make communication a priority. How intentional are you about communicating regularly and clearly? Hold regular check-ins with your team, share updates transparently, and make sure people understand why their work matters.
3. They invest in developing their people
People don’t just want a job — they want to grow. And the best organizations recognize that if you want to keep talented employees, you need to invest in them.
That’s why it’s so concerning that 37% of employees have left a job they liked because they got a new boss they didn’t like.
Think about that — over a third of employees quit not because of pay, workload, or company policies, but because of poor leadership!
This is a huge wake-up call. Great organizations don’t just hire managers and hope for the best. They intentionally develop leaders at every level, equipping them with the skills to motivate, support, and guide their teams effectively. Leadership development isn’t a “nice to have”—it’s essential for retention and long-term success.
✳️ Leader’s Takeaway: Think about how you’re investing in your team’s growth. Are you mentoring people? Providing feedback? Helping them build new skills? When employees feel supported, they’re far more likely to stay and give their best.
4. They set clear goals and strategic direction
High-performing organizations don’t just work hard — they work smart. They provide a clear strategic direction that guides decision-making at every level. Employees know what the company is trying to achieve and how their role fits into the bigger picture.
The good news is that 73% of working Americans trust that their leaders know what it takes to achieve their performance goals. But trust alone isn’t enough.
If employees don’t have clarity on the strategy or a clear sense of their own role in executing it, alignment and engagement suffer. To help everyone stay on task, the task of the leader is to consistently translate high-level goals into practical next steps for their teams. The result is greater clarity and focus across the organization.
Organizations that set clear priorities and communicate them well see great strides in productivity, alignment, and engagement.
And, extra bonus — when employees understand how their efforts contribute to the company’s success, they feel a stronger sense of purpose and ownership in their work! Which means they’re more engaged and they stay longer. What leader doesn’t want that?
✳️ Leader’s Takeaway: Evaluate how well your strategic goals are being communicated and translated into action. Do employees understand where the organization is headed and how their work supports those goals? Are priorities clear and reinforced consistently?
5. They execute with excellence
Having great ideas and ambitious goals means nothing if nothing gets done. The most effective organizations don’t just plan well — they execute well too! That means having the right processes, systems, and accountability in place to turn vision into reality.
I’ve seen too many organizations get stuck in a cycle of constant planning without real execution. Meetings happen, strategies are discussed, but nothing actually moves forward. Afterwards, team members say, “And what was all that for…???”
High-performing organizations make sure that the work gets done—and that it’s done well. What helps? Streamlined processes, strong project management, and clear expectations.
Leaders in these organizations don’t just say, “Do better! Good luck with that!” They put the right systems in place so that things actually improve.
✳️ Leader’s Takeaway: Take an honest assessment of the effectiveness of your execution. If your organization struggles with execution, take a step back and ask: What’s getting in the way? Do people have the tools they need? Are there clear workflows? Are expectations defined? Making small improvements in execution can lead to huge gains in overall performance.
Want to take your Team’s or organization’s effectiveness to the next level?
The findings in this study affirm the core principles of the Effective Ecosystem — a framework that highlights the importance of balancing culture, strategy, execution, and people development to build high-performing organizations.
If you’re looking for data-driven insights to strengthen your team or organization, The Org Effectiveness Index 2025 is a great place to start.
If you’re looking to take your organization to the next level, let’s connect. We can explore how these insights apply to your unique challenges and develop a tailored strategy to elevate performance, engagement, and long-term success!
