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Organizational Health Checkup

A fast track to performance improvement

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1. Organizational health is one of the most powerful levers leaders have to drive performance in short term AND set up the organization for the long-term success 

2. Organizations need to measure and manage health with the same rigor as performance to achieve and maintain a long-term sustainable competitive advantage

3. There is more than one way for an organization to be healthy – leaders need to choose ‘how to manage the place’ and align their organization to

3 core beliefs on Organizational Health

Do you know that

2. Organizational health fluctuates

As leaders we need to measure and manage it over time – just like we do with performance

External
orientation

8

Innovation
& learning

9

Account-ability

4

Capabilities

6

Coordination
& control

5

Motivation

7

Leadership

2

Direction

1

Culture

3

Internal alignment

The organization has a compelling vision and well-articulated strategy, which is supported by its culture and values

Quality of execution

The organization demonstrate executional exellence against its strategy and in delivering services

Capability for renewal

The organization effectively understands, interacts, responds and adapts to its situation as well as external evironment

3. Organizational health will be measured by 9 critical indexes

1. Healthy companies deliver three times higher returns over time 

Top
quartiles

Middle
quartiles

Bottom
quartiles

26

16

9

x3

Source: McKinsey

4. Organizations don’t need to be good at all 37 practices

Leaders can select the recipe that enables them to drive health in a way that reflects their core beliefs about value creation

Direction

Shared visions
Strategic clarity
Employee involvement

Roles clarity
Performance contracts
Consequence
management
Personal ownership

Meaningful values
Inspirational leaders
Career opportunities
Financial incentives
Rewards & recognition

Leadership

Authoritative leadership
Consultative leadership
Supportive leadership
Challenging leadership

Culture

Open & trusting
Internally competitive
Operationally disciplined
Creative and
entrepreneurial

People performance review
Operational management
Financial management
Professional standards
Risk management

Top-down innovation
Bottom-up innovation
Knowledge sharing
Capturing external ideas

Talent acquisition
Talent development
Process-based capabilities
Outsourced expertise

Customer focus
Competitive insights
Business partnership
Government & community relations

Accountability

Coordination & control

Capabilities

Motivation

Innovation & learning

External orientation

1.
2.
3.

4.
5.
6.
7.

8.
9.
10.
11.

12.
13.
14.

15.

16.
17.
18.
19.
20.

21.
22.
23.
24.

25.
26.
27.
28.
29.

30.
31.
32.
33.

34.
35.
36.
37.

What to do tomorrow?

2. Identify

your top 3 most important health concerns given your performance goals

3. Decide

whether “health management practice” is the right answer for your organization

1. Assess

your current level of organizational health with your leadership team and define the standard level needed to drive performance goals

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