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Here’s How You Measure Organizational Health At Your Firm



If your organizational health report is just fine, no one can stop you from creating waves in the market.

In general, when we think of business, the first thing that comes to mind is financial and operating performance. All of us know that the purpose of running a business is to earn profits. However, we often there are certain other factors that affect the long-term sustainability of an organization.

One of them is organizational health. It’s imperative to take the time out to assess your business periodically to see where you stand on this front.

McKinsey Company has been researching this concept for over a decade now and their research proved that from 2003 (when they began collecting data on health) to 2011, healthy companies generated total returns to shareholders (TRS) three times higher than those of unhealthy ones.

Thus, there is a strong link between health and performance. Here are some metrics you can use to measure organizational health:

Goal Focus and Vision Alignment

The ability of everyone involved with the organization to have clarity, understanding, acceptance, support and advocacy of the organizational vision, strategy and goals. There should be a clear flow of information in both directions – horizontal and vertical – that can empower employees to align their work with the larger organizational goals.

Execution excellence

This refers to the organization and its people’s ability to execute tasks such that they ultimately lead to customer delight. If each individual delivers his/her best, the sum total of organizational productivity and performance will exceed all expectations. High internal quality standards should be maintained from the recruitment to the final output stage.

Problem-solving adequacy

This refers to an organization’s ability to perceive problems well in advance and to solve them with minimal energy. If teamwork and innovation are involved, problems get solved easily and stay solved in the long run. Over time, this becomes a strength of the organization.

Adaptation and positive response to market trends

The organization should be able to renew its focus over time by responding positively to changes in the market, the unique needs of its stakeholders and changing customer preferences. This is the key to staying ahead of the competition.


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