What is an Organizational Health Assessment?

Just as we go for regular health check-ups to maintain our well-being, organizations too need to conduct health assessments to ensure their prosperity and longevity. A healthy organization is characterized by happy and productive employees, satisfied and loyal customers, and financial performance that meets or surpasses industry benchmarks. In fact, research from McKinsey reveals that organizations with robust health generate shareholder returns that are three times higher than those of unhealthy organizations.
Understanding Organizational Health

Organizational health is a measure of how effectively a collective entity operates, grows sustainably, and adapts to change. It’s not just about culture or employee engagement. It’s about the organization’s ability to align around a common strategy, adapt to changing customer needs, competitor responses, and regulatory guidelines without requiring a full-scale restructuring. A healthy organization is one with minimal politics and confusion in its environment. As a result, productivity and morale soar, and good people are attracted to work there. Organizational health is not just a tool for the short term, it enables organizations to be relevant and compete effectively in the market.

Assessing Organizational Health

Evaluating organizational health involves looking at key elements such as agility, accountability, and alignment. There’s no single metric to evaluate organizational health, and its exact nature depends on the specific needs of an organization. An organizational health assessment takes the pulse of your organization and provides a picture of its overall health. It also highlights areas that need improvement and helps leaders at all levels manage the health of their organization as rigorously as they do their financial performance.


Agility in the context of organizational health refers to an organization’s ability to gather insights rapidly and adapt to changes. It’s about the ability to respond swiftly and successfully to environmental changes. Organizational agility can help companies adapt more quickly to changing customer needs, competitor responses, and regulatory guidelines without requiring a full-scale restructuring. Increased agility allows for more regular feedback, enabling organizations to identify trends and take swift action before minor issues become major problems.


Accountability in the context of organizational health is about being transparent with the entire organization about what is being measured and how the data is used. It’s about helping people assume responsibility for their role in achieving a shared goal. A culture of accountability in an organization works best when every staff member helps hold themselves and others accountable. It means understanding what is asked of you, taking responsibility for your actions, and honoring commitments even when it requires unexpected effort. Creating a sense of accountability encourages employees to take ownership of their roles and responsibilities, driving healthier behavior such as taking initiative and meeting goals.


Alignment in the context of organizational health means that everyone in the company – from leadership to middle managers to employees – is working toward achieving a shared objective. It ensures that goals are everyone’s personal plan for getting the organization to their desired destination. Alignment gives people a model to understand what success looks like and clear daily priorities to meet objectives. It’s the absolute compatibility between paths, both strategic (goals, objectives) and operational (daily tasks, actions). Healthy organizations are aligned, meaning everyone has a shared understanding of both qualitative and quantitative measures and is working towards the same objectives.

Investing in a license for the Arrowhead OHA is a strategic move that can significantly improve your organization’s health and overall performance. Don’t miss out on this opportunity to gain a competitive edge. Contact us with any questions! Purchase your license today and start your journey towards a healthier, more successful organization.