Guest Contributor

How To Measure Organizational Health

By | Matt Mayberry

Understanding your organizational health is crucial to discovering any underlying issues preventing optimal success and growth for your company. Many leaders believe that company performance is the pivotal way to determine organizational health.

Fortunately, there are multiple ways to measure organizational health that you can use to keep your finger on the pulse of where your company is today, where you want it to be, and how you can get there.

Why Is Your Company’s Organizational Health So Important?

The marketplace is continually evolving, making it essential for companies to change and adapt to meet customers’ and clients’ needs and desires. You need to know what is working, and just as importantly, what isn’t working.

By understanding your company’s organizational health, you can maintain a competitive edge and ensure scalability, sustainability and longevity.

3 Ways to Measure Organizational Health for Your Company

As organizational health continues to become a primary driver to ensure that a company is functioning according to your vision and goals, you need more metrics than sheer performance.

Decide What Organizational Health Means to Your Company

According to a survey, there are three key attributes of organizational health, and they are internal alignment, quality of execution and capacity for renewal.

While those definitions make sense, there are other considerations that suggest strong organizational health.

Let’s look at these three metrics to help you gauge your company’s organizational health.

  1. Employee Engagement

Ensuring that your employees feel connected to your mission, vision and strategic goals is crucial to your success. Employee engagement is an excellent way to gauge your organizational health, since employees who are engaged tend to care about their work, stay with your company longer and remain productive. Further, they are generally more satisfied with their daily work.

The Society for Human Resource Management (SHRM) has reported that if employee engagement, participation and satisfaction fall below 80%, you need to work in this area seriously and quickly to realign your shared vision. However, it is far better that you focus on employee engagement as an essential and ongoing goal.

  1. Innovation Adoption and Ongoing Learning Opportunities

As we edge toward the end of the first quarter of the 21st century, innovation has never been more important than it is today. Today’s healthiest organizations follow the path of innovation and ensure that leaders and team members adopt, learn and effectively implement and regularly execute the latest innovations.

Many times, innovation is instigated as a top-down approach, introduced by leaders. It is just as important to listen to your employees who have ideas to develop or adopt new processes, practices and innovations. These forward thinkers could be leaders in your midst, so avoid overlooking or dismissing their ideas.

Most importantly, track the success of all the innovations that you adopt along the way to let you know how effective each one is.

  1. Strong Leadership

Strong leadership is vital to developing, maintaining and improving organizational health. Learn about the various leadership styles to gauge the effectiveness of your company’s leadership.

Measure your company’s leadership based on criteria such as:

  • Are they engaged with employees?
  • Do they command respect?
  • Do they challenge themselves to achieve new and higher goals for themselves and the company?

You can also help your leaders improve by offering opportunities to attend training sessions, workshops and seminars with a leadership keynote speaker who will lay out the latest trends, best practices and practical guidance. Ideally, they will also learn how to identify leadership gaps in order to course-correct for everyone’s benefit with this investment.

Summing Up

Do you feel like you have your finger on the pulse of your company’s organizational health? Hopefully, these tips will help you move beyond merely looking at overall performance and profits to determine how well your company is functioning. Such factors might help you in the short run—and are great to know in terms of business objectives—but it is vital to understand how happy your employees are and how effective your leadership is to understand how long they will continue improving.

Keep your leadership and team members aligned with your company’s goals and vision, and you’ll enjoy lasting organizational health.

Author bio:

Matt Mayberry is President of Matt Mayberry Enterprises, Inc. He is also the Wall Street Journal bestselling author of “Culture Is the Way,” an internationally acclaimed keynote speaker, and one of the world’s foremost thought leaders on leadership development and culture change. Global Gurus ranked Mayberry one of the world’s top 30 leadership thought leaders for 2023. His insights on business performance have been featured on Harvard Business Review, Inc. Magazine, Fortune, Business Insider, NBC, ABC, Men’s Journal, Chief Executive and many more major media outlets.

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