Updated: Jul 21
In today's rapidly evolving business landscape, organizations must adapt to the New World of Work to stay competitive. As the workforce undergoes profound transformations, it becomes crucial for companies to assess and enhance their organizational health continually.
Investing in assessing organizational health can yield substantial returns, impacting various aspects such as leadership alignment, team engagement, purpose and core values, ways of working, and organizational well-being. In this blog post, we will delve into the undeniable ROI (Return on Investment) of assessing the health of your organization and the benefits it can bring to your business.
Five Dimensions of Organizational Success
1. Leadership Alignment
Effective leadership alignment is vital for driving organizational success. According to a study by the Harvard Business Review, organizations with strong leadership alignment achieved an average 2.32 times higher revenue growth and 1.94 times higher profit growth compared to those with weak alignment . Assessing the health of your organization enables you to evaluate the alignment of your leadership team and identify areas for improvement.
By gauging the level of alignment among leaders, you can uncover gaps, resolve conflicts, and align their vision and goals. A robust leadership alignment not only fosters clearer communication but also empowers teams to make informed decisions, resulting in improved overall performance and a stronger bottom line.
2. Team Engagement
High levels of team engagement contribute to enhanced productivity, creativity, and employee retention. Research from Gallup shows that engaged teams outperform their less engaged counterparts by 21% in profitability . Assessing the health of your organization provides valuable insights into the level of engagement among your teams.
Measuring factors such as employee satisfaction, motivation, and sense of belonging, enable you to identify potential barriers and address them effectively. Investing in initiatives to improve team engagement, such as fostering a positive work environment, recognizing and rewarding achievements, and providing growth opportunities, can yield significant returns in terms of increased productivity, innovation, and reduced turnover rates.
3. Purpose and Core Values
Organizations with a clear sense of purpose and strong core values tend to outperform their competitors. A study conducted by Deloitte found that purpose-driven companies experienced 30% higher levels of innovation and 40% higher levels of employee retention . Assessing the health of your organization allows you to evaluate the alignment between your stated purpose and core values and their actual manifestation within the company.
When gaps or inconsistencies are identified, you can work towards aligning your organization's mission with its day-to-day operations. A well-defined purpose and aligned core values not only attract like-minded employees but also create a shared sense of direction, fostering a cohesive and motivated workforce.
4. Ways of Working
The way work gets done has changed dramatically in recent years. Assessing the health of your organization helps you evaluate your existing processes, workflows, and systems. According to McKinsey, organizations that prioritize agile ways of working can achieve up to 30% higher customer satisfaction and 20% higher employee satisfaction .
Identifying bottlenecks, inefficiencies, and areas for improvement, create an opportunity to optimize your ways of working. Implementing agile methodologies, embracing digital transformation, and fostering a culture of continuous improvement can lead to increased efficiency, faster decision-making, and ultimately, a competitive advantage in the marketplace.
5. Organizational Well-Being
The well-being of your organization encompasses various aspects, including employee mental and physical health, work-life balance, and overall job satisfaction. According to the World Health Organization, every dollar invested in improving mental health in the workplace can result in a return of $4.30 in improved health and productivity . Assessing the health of your organization allows you to gain insights into these critical areas.
By addressing factors that impact well-being, such as excessive workload, lack of support, or inadequate resources, you can create a healthier and more fulfilling work environment. Improved organizational well-being leads to reduced absenteeism, increased employee engagement, and a positive employer brand, attracting and retaining top talent.
Investing in assessing the health of your organization is a strategic move that yields significant returns. By evaluating leadership alignment, team engagement, purpose and core values, ways of working, and organizational well-being, you gain valuable insights into your organization's strengths and areas for improvement.
Taking action based on these insights not only improves overall performance but also enhances employee satisfaction and promotes a thriving organizational culture. Embrace the New World of Work by prioritizing the health of your organization and witness the tangible ROI it brings to your business.
: Beer, M., Eisenstat, R. A., & Spector, B. (2015). Why change programs don’t produce change. Harvard Business Review, 93(10), 60-67. : Harter, J. K., Schmidt, F. L., & Hayes, T. L. (2002). Business-unit-level relationship between employee satisfaction, employee engagement, and business outcomes: A meta-analysis. Journal of Applied Psychology, 87(2), 268-279. : PwC (2017). Purpose-driven leadership: Can your organization answer the call? : McKinsey & Company (2018). How to create an agile organization. : World Health Organization (2017). Mental health in the workplace.