Organizations are like human beings with regards to “health”: some are healthier than others. Like human beings, healthy organizations tend to perform better, have more fun and live longer. There are 5 key components to a healthy organization.
1 Healthy CEO/leaders. (Please see our CEO/Leaders page.)
2 Truly effective teams:
- Commit to a common goal.
- Share values.
- Trust each other and are willing to be open/vulnerable with each other.
- Fearlessly engage in “constructive conflict”.
- Hold each other accountable for team performance.
- Are willing to put team interests ahead of personal or department interests.
3 Viable strategy and clarity of purpose throughout the organization, at the company, team and individual level:
- The corporate vision, mission, goals and strategies are articulated and known by all.
- All team members know “where” you’re going and “why” it matters.
- All team members clearly understand what is expected of them.
- Organization goals are effectively cascaded down through all ranks of the organization.
- The organization structure promotes complete clarity of business unit purpose.
- All positions within the organization have concrete goals or key performance indicators (KPIs).
4 Productive culture:
- The organization values are understood and embraced by all.
- All team members are engaged and contributing at their full potential.
- The right people are brought in to the organization and non-performers are let go.
- All staff members are developed to higher levels of performance.
- You have an effective system of communication both up and down the organization.
- You have implemented a system of rewards and discipline that promotes desirable behaviors.
- Accountability throughout: set good goals, monitor progress, hold individuals/teams accountable.
5 Growing and profitable:
- You plan for growth: marketing, operations, finance.
- You know all you must know about market opportunities and competition to plan and execute effectively.
- You take steps to reinforce and expand your Sustainable Competitive Advantage.
- You have defined and shared your Value Proposition with all team members.
- You actively work to enhance profit.
- All team members know how the company makes money and their role in the process.
- You consciously eliminate unprofitable customers, products, services, branches or operations.
- You implement a process of continuous improvement.
- Your human sales force is trained, goal-driven and effective.