On Organizational HealthOrganizational health is the single greatest competitive advantage that any organization has. It’s absolutely free, everyone has it, but it remains virtually untapped. This is sad. Looking at organizational performance, we must see two things: Smart and Healthy.
First, organizations must be smart. This would include things like strategy, marketing, and finance. Smart things are very important, but they are only half the equation. Sadly they often get 98% of focus in organizations because leaders see them as hard science. Simply, their easier to work with.
Organizations must not only be smart, but also healthy. Healthy looks like minimal politics, minimal confusion, high morale, high productivity, and low turnover. This type of change looks great, but leaders struggle with how to tackle these issues. If we really want to change our organizations than they must become healthy places. This health becomes a multiplier of the smart stuff. Health takes us to the next level! Companies like Southwest are not better because they are smarter, they are better because they are healthier than the competition. So how do we do that? How do we become healthy and not simply smart? Becoming healthy requires that we be disciplined with keys like cohesive leadership teams and razor sharp clarity. We must communicate well and energize organizational leaders.
Six Critical Questions to Answer:1. Why do we exist? (core purpose)
When you know what your reason for existing is than it informs decision making
2. How do we behave? (core values)
This must get down to the 1-3 truly critical values. Not aspirational values, or values you want to have, but actual company values. These are thing you're willing to lose customers over and get punished in the market for.
3. What do we actually do?
What do you really do at your core, not what you sell.
4. How do we succeed? (strategy)
Strategy should be accessible to everyone in the company. We can define strategy as the myriad of intentional decisions we make to separate us from our competitors. Boil strategy down to three things - three strategic anchors
5. What is most important in our organization right now? (rally cry)
6. Who must do what? (positional clarity)