Leadership Update 20 Organisational Health (Why It is So Important)

shawnsher
Jun 20, 2017
3 min read

Why Organisational Health?

Most companies have more than enough collective experience, intelligence and domain expertise of their respective industries to be wildly successful. Yet, few of them are able to create the kind of healthy culture which would allow them to tap into that expertise.
From large financial institutions and public listed companies to small and medium enterprises, I’ve over the years met frustrated executives who couldn’t figure out why their organisations’ weren’t able to achieve the results their strategic plans had promised.
This is where organizational health comes in. Look at it this way…Imagine, two kids growing up. The first child is brought up in a household of privilege. He/she goes to the best schools, has private tutors and lessons and generally has all the financial resources to back up any initiative he/she chooses to pursue. However, this child is brought up in a household where their feelings are not acknowledged. Apathy, dysfunction and a ‘conditional’ love prevail in this household where each person is more preoccupied with their individual needs.
Contrast this with the second child. He/she comes from a middle class family who does not have all the resources of the first child. Yet, healthy communication, warmth and empathy are available in abundance. There is healthy discipline, attention and time given to this child. There in unconditional love which provides this child with a sense of security.
Which child will you place your bets on to succeed?...
Healthy families that provide nurturing, warmth, attention and healthy discipline will always improve over time even if they lack the resources and advantages that money can buy. Unhealthy families on the other hand, will always struggle, even if they have all the money, tutors, coaches and technology that could ever want.
This same dynamic applies to organisations. Most organisations today are ‘smart’ in the sense that they have the intelligence, knowledge and expertise required to succeed. What they lack is organizational health… What You Get When You Have Organisational Health
When your organisation is healthy, the first thing you will notice is an absence of ‘politics’. Everyone is rooting for one team, i.e. the success of the collective organisation and all decisions made are based on this criteria of ‘does this serve the best interest of the organisation’. People don’t work in silos and are not preoccupied with looking good. They are comfortable sharing their flaws and mistakes with one another and don’t attempt to cover up. This results in people being able to learn from one another, critical issues being identified early and the organisation recovering quickly from mistakes.
In a healthy organisation, clarity on what to focus on is self- evident. People come to work having a clear understanding on what is ‘truly important’ from the mundane. They see the big picture of how their jobs contribute to the organisation’s big picture. They are able to link their role with the organisation’s mission which in turn spurs intrinsic motivation.
As a result of having intrinsic motivation, the healthy organisation has high employee morale and productivity. People feel treated fairly and seek to respond in kind. Warmth and drive go hand in hand within the organisation as people seek to drive growth while feeling implicitly trusted to perform. Given this high sense of identity with their roles, a healthy organisation sees very little employee turnover with those leaving generally limited to those people who were either under-performers or those unsuited to the culture of the business. The good people always generally want to stay. The Benefits
Think about all these benefits your organisation stands to gain by making organizational health a priority.
Firstly, you gain a massive competitive advantage that will differentiate your business from competitors in a way that is hard for strategists and analysts to understand.
Secondly, you will almost certainly see an improved bottom line.
Next, you make a real difference in the lives of the people who work there. We have all heard, witnessed or personally experienced situations where an employee’s job stress or unhappiness with their work life ends up wrecking their personal home lives. Imagine the positive impact your contribution in making your organisation/department healthier can extend into making your staff families happier and healthier.
Finally, for leaders spearheading these efforts, you will find pursuing organizational health one of the most meaningful and rewarding endeavours you will ever pursue.