{"id":3912,"date":"2018-10-01T07:28:09","date_gmt":"2018-10-01T12:28:09","guid":{"rendered":"http:\/\/flevy.com\/blog\/?p=3912"},"modified":"2020-12-21T20:44:39","modified_gmt":"2020-12-22T01:44:39","slug":"organizational-health-matters-more-than-we-expect-is-your-organization-healthy","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/organizational-health-matters-more-than-we-expect-is-your-organization-healthy\/","title":{"rendered":"Organizational Health Matters More than We Expect. Is Your Organization Healthy?"},"content":{"rendered":"<p><img decoding=\"async\" class=\"alignright size-medium wp-image-3932\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2018\/09\/Organizational-Health-pic1-300x188.jpg\" alt=\"Organizational Health pic1\" width=\"300\" height=\"188\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2018\/09\/Organizational-Health-pic1-300x188.jpg 300w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2018\/09\/Organizational-Health-pic1.jpg 908w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><a title=\"Organizational Health: Situational-Leadership Staircase\" href=\"https:\/\/flevy.com\/browse\/flevypro\/organizational-health-situational-leadership-staircase-3406\">Organizational health<\/a> matters more than we might expect.<\/p>\n<p>Top management teams that are serious about developing vibrant businesses must look inward and assess the organization\u2019s health objectively. The most <a href=\"https:\/\/flevy.com\/browse\/flevypro\/effective-leadership-behavior-3408\">effective leadership behavior<\/a> reflects the state of the company\u2019s organizational health. Is our leadership behavior strong enough in ways that matters most in keeping our organization healthy?<\/p>\n<p>Organizational health should come first when determining which kind of behavior will be most effective for companies. Companies should spotlight different sets of actions in different situations.<\/p>\n<h2><strong>Self-Assessment of Organizational Health<\/strong><\/h2>\n<p>Leaders often overestimate the health of their organizations and the effectiveness of their <a href=\"https:\/\/flevy.com\/business-toolkit\/leadership\">leadership<\/a>. Too many executives default to describing their companies as good and striving to be great.<\/p>\n<p>This cannot be true. Companies cannot be above the median line of <a title=\"Organizational Health: Situational-Leadership Staircase\" href=\"https:\/\/flevy.com\/browse\/flevypro\/organizational-health-situational-leadership-staircase-3406\">organizational health<\/a> than below it. A robust assessment is necessary to have a more informed sense of what it feels like to be in one type of company or another. But since a rigorous self-diagnosis is not always possible, some rules of thumb have been developed to help assess the health of organizations. The use of the rules of thumb in assessing the health of our organization gives executives a more informed sense of what state our organization is in.<\/p>\n<p><strong>State of Health: Ailing Organization<\/strong><\/p>\n<p>The leadership style of an Ailing Organization tends to rely on very detailed instructions and monitoring. This is a symptom of excessive title control<\/p>\n<p><strong>State of Health: Healthier Organization<\/strong><\/p>\n<p>The leadership style of a Healthier Organization shows greater support for colleagues and subordinates. Leaders are more sensitive to the needs of their employees.<\/p>\n<p><strong>State of Health: Elite Organization.<\/strong><\/p>\n<p>The leadership style of an Elite Organization challenges employees to aspire higher still by setting stretch goals that inspire them to reach their full potential.<\/p>\n<h2><strong>Undertaking The Organizational Health Survey<\/strong><\/h2>\n<p>A survey was conducted to explore the effectiveness of different kinds of leadership behavior at companies in different states of organizational health. Purpose of the survey was to identify behaviors that matches organizational health with perceived effectiveness and to isolate those behaviors that were most effective in different situations.<\/p>\n<p>Based on a sample size of 375,000 people from 165 organizations across multiple industries and geographies, two core elements were analyzed.<\/p>\n<ul>\n<li>First quartile: Organizational Health &#8211; Leadership behaviors that are always present and those that are more or less prevalent in each quartile were identified.<\/li>\n<li>Second quartile: Leadership Effectiveness &#8211; Behaviors that are perceived to be most effective were identified.<\/li>\n<\/ul>\n<p>Analysis of the survey results showed the development of a\u00a0<a title=\"Organizational Health: Situational-Leadership Staircase\" href=\"https:\/\/flevy.com\/browse\/flevypro\/organizational-health-situational-leadership-staircase-3406\">Leadership Staircase<\/a>,\u00a0a pyramid of behavior analogous to Maslow\u2019s hierarchy of needs.<\/p>\n<h2>The Situational-Leadership Staircase Framework<\/h2>\n<p>The<a title=\"Organizational Health: Situational-Leadership Staircase\" href=\"https:\/\/flevy.com\/browse\/flevypro\/organizational-health-situational-leadership-staircase-3406\"> Situational-Leadership Staircase Framework <\/a>\u00a0is a scientific progression of behavioral development .\u00a0 It is a pyramid of behavior analogous to Maslow\u2019s hierarchy of needs.<\/p>\n<ul>\n<li>Some behaviors are always essential.<\/li>\n<li>Additional behavior become apparent as organizational health improves.<\/li>\n<li>\u00a0Some behaviors are differentiators that can lift the organizational health of a company.<\/li>\n<\/ul>\n<p>The importance of employing different kinds of leadership behavior to improve organizational health will vary according to a company\u2019s starting point.<\/p>\n<p><a href=\"https:\/\/flevy.com\/browse\/flevypro\/organizational-health-situational-leadership-staircase-3406\"><img decoding=\"async\" class=\"aligncenter wp-image-3933 size-full\" src=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2018\/09\/Organizational-health-slide1.jpg\" alt=\"Organizational health slide1\" width=\"707\" height=\"531\" srcset=\"https:\/\/flevy.com\/blog\/wp-content\/uploads\/2018\/09\/Organizational-health-slide1.jpg 707w, https:\/\/flevy.com\/blog\/wp-content\/uploads\/2018\/09\/Organizational-health-slide1-300x225.jpg 300w\" sizes=\"(max-width: 707px) 100vw, 707px\" \/><\/a><\/p>\n<p><strong>First Level: Baseline Behavior<\/strong><\/p>\n<p>The Baseline Behavior \u00a0is a set of behaviors that are essential for companies at every level. No matter what the company\u2019s health may be, the following practices are essential.<\/p>\n<ul>\n<li>Effectiveness at facilitating group collaboration<\/li>\n<li>Demonstrating concern for people<\/li>\n<li>Championing desired change<\/li>\n<li>\u00a0Offering critical perspectives<\/li>\n<\/ul>\n<p>The absence of such fundamentals of healthy interpersonal interaction invites disorder. Shoring up these behaviors can serve to keep organizations from sliding backward into organizational trouble.<\/p>\n<p><strong>Second Level: Third Quartile Transition<\/strong><\/p>\n<p>The Third Quartile Transition lacks some or even all of the baseline forms of behavior. Companies in this level have low levels of innovation, declining customer loyalty, wilting employee morale, loss of major talent, and have critical cash constraints.<\/p>\n<p>Leaders of companies in Third Quartile Transition must be able to make fact-based decisions, solve problems effectively, and focus positively on recovery.<\/p>\n<p><strong>Third Level: Second Quartile Transition<\/strong><\/p>\n<p>Companies in the Second Quartile Transition have the ability to take practices that are already used at some levels of the organization. As such, companies need to keep groups focused towards well-defined results and have the agile behaviors that look at better ways of doing things.<\/p>\n<p><strong>Fourth Level: Top Quartile Transition<\/strong><\/p>\n<p>Top quartile leaders are the motivators and models of organizational values. They have the highest level of organizational health<\/p>\n<p>However, starting at the top can be a tragic move. A 3rd quartile company cannot apply the identifiable forms of leadership behavior of a top quartile company to immediately reach the top. Doing this can have irreversible effect.<\/p>\n<p>Reaching the Top Quartile\u00a0requires a steady climb of preparation and growth.<\/p>\n<p>Interested in gaining more understanding on <a title=\"Organizational Health: Situational-Leadership Staircase\" href=\"https:\/\/flevy.com\/browse\/flevypro\/organizational-health-situational-leadership-staircase-3406\">Situational-Leadership Staircase<\/a>? You can learn more and download an <a href=\"https:\/\/flevy.com\/browse\/flevypro\/organizational-health-situational-leadership-staircase-3406\">editable PowerPoint about <strong>Organizational Health: Situational-Leadership Staircase<\/strong> here<\/a> on the Flevy documents marketplace.<\/p>\n<h2>Do You Find Value in This Framework?<\/h2>\n<p>You can download in-depth presentations on this and hundreds of similar business frameworks from the <a href=\"https:\/\/flevy.com\/pro\/library\">FlevyPro Library<\/a>. <a href=\"https:\/\/flevy.com\/pro\">FlevyPro<\/a> is trusted and utilized by 1000s of management consultants and corporate executives. Here&#8217;s what some have to say:<\/p>\n<blockquote><p>&#8220;My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today\u2019s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Bill Branson, Founder at Strategic Business Architects<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 David Coloma, Consulting Area Manager at Cynertia Consulting<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor the material for specific purposes helped us to make presentations, knowledge sharing, and toolkit development, which formed part of the overall program collateral. While FlevyPro contains resource material that any consultancy, project or delivery firm must have, it is an essential part of a small firm or independent consultant&#8217;s toolbox.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Michael Duff, Managing Director at Change Strategy (UK)<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight \u2013 it&#8217;s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Roderick Cameron, Founding Partner at SGFE Ltd<\/p>\n<\/blockquote>\n<blockquote><p>&#8220;Several times a month, I browse FlevyPro for presentations relevant to the job challenge I have (I am a consultant). When the subject requires it, I explore further and buy from the Flevy Marketplace. On all occasions, I read them, analyze them. I take the most relevant and applicable ideas for my work; and, of course, all this translates to my and my clients&#8217; benefits.&#8221;<\/p>\n<p style=\"text-align: right;\">\u2013 Omar Hern\u00e1n Montes Parra, CEO at Quantum SFE<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Organizational health matters more than we might expect. Top management teams that are serious about developing vibrant businesses must look inward and assess the organization\u2019s health objectively. The most effective leadership behavior reflects the state of the company\u2019s organizational health. Is our leadership behavior strong enough in ways that matters most in keeping our organization&hellip;&nbsp;<a href=\"https:\/\/flevy.com\/blog\/organizational-health-matters-more-than-we-expect-is-your-organization-healthy\/\" rel=\"bookmark\"><span class=\"screen-reader-text\">Organizational Health Matters More than We Expect. Is Your Organization Healthy?<\/span><\/a><\/p>\n","protected":false},"author":111,"featured_media":3932,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[408,85],"tags":[1304,1302,1301,1306,1303,1305,1307],"class_list":["post-3912","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management-leadership","category-organization","tag-baseline-behavior","tag-leadership-staircase","tag-organizational-health","tag-second-quartile-transition","tag-situational-leadership-staircase-framework","tag-third-quartile-transition","tag-top-quartile"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/3912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/111"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=3912"}],"version-history":[{"count":8,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/3912\/revisions"}],"predecessor-version":[{"id":8261,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/3912\/revisions\/8261"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/3932"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=3912"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=3912"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=3912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}