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| | Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms
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| | | | Good organizational health is the best predictor of long-term success. But managing its key elements—a company’s culture, behavior, and management practices—is becoming more challenging. New technologies, evolving workplace norms, and other disruptions are forcing companies to fine-tune how they operate and how they manage their people—both of which are critical to improving their health and their bottom line. For leaders, this can make their jobs more complicated and demanding than ever. This week, we look at ways to manage the constant changes that are affecting organizational health. | | |
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| | | Over two-plus decades, McKinsey’s Organizational Health Index (OHI) has helped leaders identify which practices drive the strongest performance—and recognize if their organizations have any of them in place. The latest OHI results highlight six practices reflecting the areas of most profound change in these fast-moving times: purpose, leadership, decision making, employee experience, technology, and social responsibility. “How leaders navigate these changes may well dictate whether their organizations simply survive or truly thrive,” say McKinsey senior partners Aaron De Smet and Arne Gast and their coauthors. For example, leaders can enhance employee engagement and raise productivity by clearly articulating the organization’s “why”—that is, its fundamental purpose—rather than simply explaining what the strategy is and how to execute it. “Our new research found that this involvement can be shallow and transactional when it isn’t tied to a deeper sense of purpose and meaning,” the authors note. | | |
| | | | | | That’s how much more likely companies are to be healthy when they are run by decisive leaders, according to McKinsey’s OHI research. McKinsey’s Alex Camp, Arne Gast, Brooke Weddle, and Drew Goldstein say that making quick decisions and committing to them is a more effective style than authoritative leadership, which is based on using authority, pressure, and influence to get things done. Decisive and empowering leadership became increasingly important after the COVID-19 pandemic, which put more pressure on organizations to transform themselves swiftly. “Decisive leadership is not just for times of crisis, however; it’s a requirement for any business that just wants to keep up,” the authors say. | | |
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| | | Lead by nurturing your organization’s health. | | | | | — Edited by Eric Quiñones, senior editor, New York
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