Organizational health—the adaptive, self-renewing capacity of an organization built upon aligned management practices, employee engagement, and a robust culture—is an indispensable element of a thriving company. Like a medical checkup, an organizational health assessment is a proactive approach to ensure the well-being of your business. Here's why these assessments are vital to a company's success.
1. A Clear View of the Current State
Organizational health assessments provide a comprehensive snapshot of your company's health. For instance, under pressure from cost-competitive entrants, a global equipment manufacturer utilized an organizational health assessment to identify deep-rooted mindsets holding it back. This evaluation highlighted the need for a culture shift towards value addition and efficient processes rather than focusing solely on product delivery and performance. It's worth noting that such assessments can also reveal areas of misalignment or lack of collaboration, which are crucial for the company's ultimate goal.
2. Fosters Alignment and Cohesion
Companies often overlook internal alignment amidst goal achievement. A family-owned Asian conglomerate experienced this when they sought to change their conservative, risk-averse culture to a more innovative one. By conducting an organizational health assessment, they identified a need for more alignment in applying best practices, leading them to adopt a more innovative approach. This demonstrates the role of organizational health assessments in fostering cross-departmental collaboration and shared objectives.
3. Empowers Informed Decision Making
Data-backed decision-making ensures consistent success. A high-performing European telecom company found through an organizational health assessment that its directive and execution-oriented approach was hampering its digital transformation. This insight helped them refocus on practices like rewards, recognition, and role clarity, thereby facilitating their transition to a more agile operating model. Such assessments can provide valuable data to inform strategic decisions and drive performance improvements.
4. Enhances Employee Engagement
Engaged employees are more productive and committed. An organizational health assessment conducted by a European electronics company identified key influencers who, despite being at different hierarchical levels, significantly impacted their peers. The company drove substantial behavioral changes by engaging these influencers as role models and communicators, enhancing overall engagement. This underscores the importance of organizational health in fostering high employee performance and stakeholder involvement in the company's success.
5. Accelerates Culture Shift and Transformation
Organizational health assessments facilitate the design of effective change management strategies. For example, a global electronics company leveraged an organizational health assessment to understand the critical new practices needed for its transformation. This understanding allowed the firm to focus on critical behavioral shifts like giving and asking for feedback, significantly contributing to their successful transformation. This highlights the role of these assessments in accelerating culture shifts and organizational transformations.
6. Monitors Progress and Impact
Regular health assessments enable monitoring of progress and evaluation of the impact of changes. The previously mentioned European telecom company used a survey technique of one question a day, providing fast feedback. This approach enabled them to intervene where necessary swiftly, celebrate successes, and refine strategies for more effective results. This shows how organizational health assessments can provide a mechanism for tracking progress and evaluating the impact of changes, thereby enabling timely interventions and strategy adjustments.