Scott Keller, Bill Schaninger

Performance is what an enterprise does to deliver improved financial and operational results for its stakeholders. Companies evaluate their performance through financial and operational metrics such as net operating profit, returns on capital employed, total shareholder returns, net operating costs, and stock turn (and the relevant equivalents in not-for-profit and service industries). By contrast, health describes how effectively people work together to pursue a common goal. It is evaluated by an organization’s levels of internal alignment, quality of execution, and capacity to renew itself to sustain high performance in an ever-changing external environment. To deliver successful change at scale, leaders should emphasize performance- and health-related efforts equally.

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