When we talk about organisational health, we are not discussing the pros and cons of an employee healthcare plan. Organisational health is about the performance and wellbeing of both the company and its people. And this is something that is vital the effi
According to a recent article in McKinsey Quarterly, organisations displaying the signs of good health typically generate three times the total returns to shareholders of companies operating in a state of discomfort or, as Chase Performance defines it, ‘pain’. Additionally companies that manage both their health and performance double the probability of outperforming their competitors.
What does a healthy organisation look like?
CEOs who focus equally on three pillars of optimal organisational health and performance health are the ones driving balanced, healthy and sustainable businesses.
These three pillars are People, Process and Purpose. A critical pillar is that of people and focuses on culture, empowerment and engagement. Process revolves around standardised work, knowledge management and structured problem solving. Purpose is about defining organisation and leadership structure, customer and market focus, strategy and performance metrics.
When simultaneously harnessed and optimised, they deliver: • Enhanced efficiencies • Quality products and services • Improved productivity • Growing profitability • Increased business valuation
Our goal as business leaders should be to apply what we know about organisational health to build resilient businesses, capable of withstanding change and thriving in fluctuating environments. As best-selling author, Andrew Winston, so eloquently put it: “We live in a fundamentally changed world. It’s time for your approach to strategy to change, too.”