We like to say that organizational health is composed of three things. One is how well the organization aligns around a common strategy. Two, how the strategy then translates down into the work environment—how well the organization executes against its strategy and its ambition. Three is how well it renews itself over time, which basically means two things: one, looking outside, staying in tune with the customer or its clients, and two, having an internal innovation engine so that you can allow those insights to be brought into the organization and turned into something useful in terms of driving innovation and new capabilities.
Author: Brooke Weddle
Source: McKinsey Quarterly
Subjects: Management, Organizational Behavior