A Decade of Transformation and Growth
Over the past ten years, Vesteda has undergone an impressive transformation to become a High Performance Organization (HPO). This journey not only reflects the strategic decisions made but also the profound changes within the organization that have led to a lasting impact on both employees and tenants. This article takes you through that journey, highlighting key milestones and providing insight into how Vesteda, by embracing the HPO framework, has established itself as a leading player in the Dutch real estate sector.
What is an HPO Again?
For those in need of a refresher: a High Performance Organization (HPO) is an organization that consistently achieves better financial and non-financial results than its competitors over a period of five years or more. This is accomplished by focusing disciplinedly on what truly matters to the organization. The HPO framework, developed by Dr. André de Waal of the HPO Center, consists of five key elements: Continuous Improvement and Renewal, Openness and Action Orientation, Management Quality, Employee Quality, and Long-Term Orientation. These elements form the foundation for an organization striving for excellence, sustainable competitive advantage, and increased employee satisfaction.
The First HPO Diagnosis (2013-2015)
In 2013, amid an economically challenging time, Vesteda decided to take the first steps toward becoming an HPO. The organization was then divided into two main divisions: Vesteda Property Management (VPM), responsible for managing the housing portfolio, and Vesteda Investment Management (VIM), tasked with strategy and property acquisition. Although these divisions operated under one roof, there was a fragmented approach with different working conditions, creating a ‘client-supplier’ dynamic within the organization. This, combined with previous reorganizations and the uncertainty they brought, fostered a culture of fear and mistrust.
The first HPO survey conducted during this period gave Vesteda an average HPO score of 5.6, well below the threshold of 8.5 required to be considered an HPO (see Figure 1). The analysis identified two major areas for improvement: the lack of a clear strategic direction and the need to enhance management quality.
The First Steps Toward HPO: Collaboration and Professionalism (2015-2017)
Two years later, in 2015, the second HPO survey revealed that Vesteda had made significant progress, with an increase in the HPO score by 1 point. This growth was the result of various measures, such as merging departments, reversing outsourcing decisions, and investing in IT architecture. Despite these advances, tensions persisted between different departments and locations within the organization. This led to the formulation of four action points:
- Strengthening collaboration;
- Professionalizing management;
- Developing a vision for the future; and
- Streamlining organizational processes.
One of the most significant changes during this period was the decision to consolidate operations from three locations (two in Amsterdam and one in Maastricht) to a new headquarters in Amsterdam, which greatly improved collaboration between Vesteda’s various divisions. Additionally, several activities were organized to keep the HPO mindset alive, such as the HPO Car Wash and workshops on the value chain. Another crucial decision was to redefine the tenant as the primary customer instead of the investor. This shift significantly changed the organization’s focus and laid the groundwork for a culture where tenant interests are central.
The Next Step: Thinking Outside the Box (2017-2019)
In 2017, the third HPO survey was conducted, showing further improvement in Vesteda’s HPO score (see Figure 2).
While the organization was clearly improving, it also became apparent that core activities were still being carried out in the same manner as before. This indicated that Vesteda, despite its progress, needed to take an additional step: thinking and working outside the existing framework to truly become an HPO.
A significant development during this period was the shift in focus toward long-term goals, with the ambition of becoming “The Best Landlord in the Netherlands.” Employees found this vision inspiring, though there was still a need for further concretization of this vision within various departments and processes.
COVID-19: A Test of Resilience and Trust (2019-2021)
The COVID-19 pandemic posed a unique challenge for Vesteda, but the organization managed to improve its HPO score even during these difficult times (see Figure 3).
This achievement was made possible by the trust that had been built between management and employees, resulting in greater autonomy and proactive actions, even when working from home. During this period, Vesteda placed a strong emphasis on employee well-being and maintaining connections, which led to a strengthened sense of cohesion and pride within the organization.
Additionally, project management was improved by implementing structured project management processes and establishing the Quality & Improvement team, which focuses on continuous improvement within the organization.
On the Path to Full HPO Status (2021-2023)
The most recent HPO survey, conducted in 2023, showed further improvement in Vesteda’s HPO score, bringing the organization to a score of 7.8 (see Figure 4).
While this is just below the HPO threshold, it is clear that Vesteda is on the brink of becoming a full-fledged HPO. The organization has made impressive strides over the past ten years, as evidenced not only by improved scores but also by positive employee feedback and higher performance compared to industry benchmarks (see image).
“Striving to be the best version of yourself within an organization with people who share that ambition, aiming to achieve better performance every day for all our stakeholders. That’s what HPO means to us.”
— Astrid Schlüter – CEO Vesteda
Lessons from Ten Years of HPO Transformation
Reflecting on Vesteda’s HPO journey over the past ten years, several key lessons can be drawn to further the organization’s continuous improvement efforts:
- The HPO transformation is a process that requires time and dedication: It takes time for the value of HPO to fully permeate the organization. The transformation must be gradually integrated into daily operations. This process creates uncertainty, especially in the beginning, but it is essential for developing a high-performance mindset.
- Concrete actions and communication are crucial: It is important to quickly formulate and implement concrete improvement actions so that employees can immediately see what HPO means in practice. This helps keep HPO alive within the organization and creates a shared vision.
- Continuous attention and discipline are required: Even after years of progress, it remains important to maintain HPO discipline and stick to the tools and techniques that helped Vesteda become an HPO.
- The role of HPO Coaches is essential: HPO Coaches have played a crucial role in the transformation by acting as sparring partners for management and serving as a link between employees and management. Selecting the right coaches and providing them with strong support is a key success factor.
- Involvement of all employees: Improvement initiatives should not only come from the top but also from the employees themselves. By linking HPO to Vesteda’s strategic objectives, it becomes clear to everyone what the organization aims to achieve and how they can contribute.
The Future: From Good to Amazing
While Vesteda has already achieved much, there are still opportunities for further improvement to reach and maintain full HPO status. In the most recent HPO survey, key areas of focus were identified, including strengthening management skills, developing a clearer vision for the future, and strictly adhering to the plan-do-check-act (PDCA) cycle.
Vesteda has shown that it is possible to undergo a fundamental transformation over ten years by adhering to the HPO principles and integrating them into every layer of the organization. The foundation has been laid for a sustainable future in which Vesteda aims not only to be the best landlord in the Netherlands but also a model of continuous growth and improvement.
Conclusion
Vesteda’s transformation into a High Performance Organization is an inspiring example of how strategic choices and a strong focus on continuous improvement can lead to remarkable results. By embracing the HPO principles with discipline, Vesteda has not only strengthened its market position but also created a work environment where employees can be proud of what they have achieved together. The past ten years are a testament to perseverance, innovation, and collective effort toward excellence. The journey continues, and together we can build a future where Vesteda continues to grow and thrive.
Want to know more about the possibilities for an HPO Transformation within your team or organization? Contact Marco Schreurs. Or read more on our HPO Theme page:
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