Organisational health refers to the state of a business, in terms of how effective it is being, how productive it is, and how generally how well it is functioning.

Just like us, a healthy organisation is going to yield far better results than an unhealthy organisation, the trick for leaders is to be able to spot when and where gaps in organisational health are appearing. The benefits of a leadership development programme have been well-documented, they boost moral, generate a cohesive environment, and can bring about transformational organisational change, but the overall aim is to lift the health of the company. This is when true return on investment can be achieved.

How can I identify an unhealthy organisation?

  1. Employee engagement – If there was ever an award for an overused term that very few people can actually identify, employee engagement would be up there. While everyone associated with managing and leading knows that employee engagement is crucial, spotting a lack of it is tricky. In its simplest form: Are people happy?
  2. Presenteeism – If the people within your team or company turn up to work on time and leave on time, but really don’t look as though they are ‘there’ at all, you have a problem with presenteeism. This is about turning up to work physically, but not mentally. A clear factor if determining organisational health.
  3. Productivity levels – This isn’t as simple as: “Production has gone down, we have an unhealthy organisation.” It is important to assess why production has gone down, and if that is more to do with the people at work and the way they are being managed and motivated, this could be a symptom of an unhealthy organisation. But be sure not to jump to conclusions, it could be connected to economical factors, for instance.
  4. Direct conversations – Ask the people within your team or company how they feel about work. The internet is a goldmine for employee surveys, so adapt one to your business and start talking. If problems are thrown up like, “I don’t feel motivated” or “I dread coming into work”, the health of the company is at risk. But these negatives can be positive, how else would you have identified them to deal with them?
  5. Breakdown in teams – Teams are so crucial to the functionality of an organisation and have a direct impact on overall health. From boardroom all the way though, we need to work effectively together. Observe teams in action, are they cohesive and purposeful? A team-specific leadership training programme will give teams a huge boost, but it is up to company leaders and team leaders to identify gaps in the first place. Organisational health is dependent on effective teams communicating well.

Source by James Pentreath