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/ 13. 7. 2021

The yin and yang of organizational health

Agile working aims to create more responsive, efficient, and effective organizations based on more balanced, motivated, innovative, and productive teams and individuals. These are essential ingredients in surviving and thriving in the challenging global world in which we operate today.


Since the pandemic affected almost every employee’s performance, left workers burned out and blurred the lines between work and life, we have decided to summarize a McKinsey article about the yin and yang of organizational health. Their findings are more than appropriate for the anxious time we live in today. 

They analyzed and compared a set of 51 companies based on the Organizational Health Index (OHI) and Corporate Horizon Index (CHI) and came up with four primary management practices that jump-start health improvement:

1. Set a clear direction: with clear goals and a shared vision leaders will be able to align employees across all levels, helping them to avoid working on initiatives that are not in line with the strategy.

2. Make it meaningful to employees: use your company's vision to guide employees' day-to-day behavior and match their personal goals with business strategy.

3. Spark ideas and innovation: by encouraging "bottom-up" innovation you will create a deeper sense of ownership among employees and spark fresh ideas. Feeling involved and appreciated can significantly improve the overall organizational health.

4. Build strong operational discipline in a supportive way: combining strong operational discipline with supportive leadership will create a sense of teamwork and mutual support throughout the organization and demonstrate concern for the welfare of employees.

Healthy organizations are better at sustaining themselves over the long haul. And transformations are more sustainable when companies prioritize improving their organizational health, which isn’t just desirable as their research suggests. It’s pretty feasible. By enhancing sustainability, stronger organizational health connects the yin of long-term with the yang of aggressive performance improvement, making it a worthy goal for any leader worried about their legacy.

Source: McKinsey&Company

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