Organisational Health is a measure of the ability of an organisation/business to be highly adaptable to changes in its environment and thereby develop and sustain its competitive advantage over the long term.
A healthy organisation maintains strength in three critical traits, which we characterise as the internal alignment of all business activities, the quality of execution throughout the organisation and an external focus that utilises what is happening in the broader business environment to its advantage.
Internal alignment within a business produces:
• Shared objectives, supported by the culture and climate of the organization and meaningful to each employee
• Energy and efforts of all staff focused on achievement of business goals
• Increased contribution of all staff to productivity and delivery of results
• Improved bottom line
Quality of execution results in:
• Right first time – minimal levels of rework
• Consistently high quality of delivery (in all aspects of the business – internal & external)
• High client satisfaction
• Great reputation
• Winning/retaining clients easily
• Recruiting/retaining the right talent
External business focus delivers:
• High quality engagement with customers, suppliers, partners, etc
• Continual drive for value
• Ability to tailor current and future offerings to the market
• Continued competitive growth
These three traits are established and sustained by a blend of eight organisational attributes – Leadership, Followership, Empathy, Competence, Rigour, Confidence, Capability and Innovation. The strength of these attributes determines the health of an organisation and, consequently, the extent to which it can adapt to changing circumstances better than its competition.
So how does your organisation rate on the eight attributes? Which of the benefits of organisational health are you experiencing? Which do you most want to have and, therefore, which of the three traits do you need to develop most?