Organizational Health – A Requirement for Organizational Success

The first time I encountered the topic of Organizational Health, it was in a book written by Patrick Lencioni in 2002 entitled: The Five Dysfunctions of Team. In it, Lencioni makes the case for the necessity of healthy organization led by a humble, ambitious, emotionally smart leadership team through exploring five dysfunctions that frequently stand in the way: absence of trust, fear of conflict, lack of commitment, avoidance of accountability and inattention to results.
 

In a business world that was largely ruled by command and control, Lencioni’s emphasis on trusted responses, radical peer collaboration, personal accountability, safe/deliberate conflict of ideas, and execution felt nearly heretical at its introduction. Twenty plus years later, it is an accepted and much discussed foundation of every high performing, thriving organization.
 

A recent article from McKinsey reinforces the power of Organizational Health (an organization nearly free from internal politics, silos, and strategic confusion) noting that over the long term, “healthy organizations deliver three times the stakeholder returns of unhealthy organizations, regardless of industry.” Further, McKinsey notes that organizational health is the strongest predictor of value creation. How leaders lead, connections between technology and data fueled innovation, as well as the value of talent mobility are notable themes.
 

Interested in learning more? You can read McKinsey’s full article here.