TO COMPETE IN MANUFACTURING REQUIRES HIGH- PERFORMANCE COMPANIES THAT PRODUCE MORE CONSISTENT QUALITY, HIGHER OUTPUT, AND OFFER GREATER FLEXIBILITY THAN THE TAYLOR ORGANIZATIONS OF THE 1800S. THE CRITICAL INGREDIENT OF A HIGH-PERFORMANCE ORGANIZATION IS HIGH-PERFORMANCE PEOPLE. FOR THE MOST PART, THIS NEW MANUFACTURING ORDER WILL BE IMPLEMENTED NOT BY A NEW WORK FORCE, BUT BY EMPLOYEES THAT NOW OCCUPY EXISTING POSITIONS. THESE EMPLOYEES MUST ABANDON THE TRADITIONAL MANUFACTURING MIND-SET AND LEARN NEW METHODS. THIS PAPER DISCUSSES FOUR CHARACTERISTICS OF HIGH- PERFORMANCE ORGANIZATIONS.