Organizational Health: The Ultimate Competitive Advantage

How do you know if your organization is performing as well as it could be? How can you identify its relative strengths and weaknesses? If you’re like most executives, you want your organization to be exemplary. But if you’re honest with yourself, you also know that it’s not and that, in fact, you’re not even sure what exemplary means or how you’ll ever get there.  Our central message is that focusing on organizational health—the ability of your organization to align, execute, and renew itself faster than your competitors can—is just as important as focusing on the traditional drivers of business performance.

Linking Organizational Health and Performance

The case for health starts with an understanding of how it relates to performance. Performance is what an enterprise delivers to stakeholders in financial and operational terms. It is evaluated through such measures as net operating profit, return on capital employed, total returns to shareholders, net operating costs, and stock turns. Health is the ability of an organization to align, execute, and renew itself faster than the competition to sustain exceptional performance over time. It comprises core organizational skills and capabilities, such as leadership, coordination, or external orientation, we have identified nine elements that contribute to organizational health: accountability, capabilities, coordination and control, culture and climate, direction, external orientation, innovation and learning, leadership, and motivation.

Corporate Performance Diagnostic (CPD)

A CPD connects a company's performance and growth to future value creation potential, providing a solid basis to opportunely time strategic moves and shareholder communications. It offers a fact-based perspective on the link between a company's valuation in the financial markets and its underlying operational performance, shareholder expectations, and the performance of its peers; and it identifies a company's most promising opportunities to create value based on the analysis, using our core frameworks.

The CPD solution measures and tracks the organizational elements that drive performance. It provides a simple but powerful road map for leaders and managers to improve organizational health. CPD goes beyond a typical engagement or employee survey. It prescribes interventions to improve those elements of health directly linked to performance. For the first time, managers are saying they know where to focus organizational efforts to deliver on their mission.

Organization Scorecard

Proprietary tools and solutions are a significant source of our distinctiveness. They enable us to provide actionable insights and deliver unique results for our private and public clients. The scorecard includes all the elements of decision effectiveness--quality, speed, yield and effort--and charts your performance on each one.  Once you know your overall score, you need to know which elements of your organization are contributing to decision effectiveness and which are getting in the way. This scorecard evaluates your structure, processes, incentives and many other elements, helping you find the barriers to better decision making and execution.

 

Related Practices

Managing strategy and stakeholders includes ensuring continuous alignment of the project with the business strategy and value objectives, detailed analysis of stakeholder positions, vendor management, and proactive risk identification and mitigation.

How can we help you?

We help organizations build competitive advantage through the development of sustainable, world-class project management capabilities.