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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