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Only McKinsey Perspectives

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS

Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

What healthy organizations do

In the news

•

Listening more. The world has moved beyond an industrial-era management style in which authoritarian leaders hand down decisions to rank-and-file workers, two US army officers reflect in Fast Company. In the information age, leaders must cultivate a culture of learning, which requires talking less and listening more. Considering how to engage team members (for example, by building in time to reflect), can help leaders ensure that all are empowered to contribute to conversations. [Fast Company]

•

Improved engagement. Earlier this year, engagement among US workers dipped to its lowest point in more than a decade, partially due to staffers feeling less connected to their organizations’ purpose, according to Gallup. Since then, the share of employees who are fully engaged has increased slightly to 32 percent in April through May, up from 30 percent in the first quarter of 2024, Inc. reports. Engagement improved the most among fully remote workers and those who are younger. [Inc.]

Common purpose is a strong predictor of organizational health.

On McKinsey.com

•

Practices that propel health. McKinsey’s Organizational Health Index (OHI) consistently shows that the best predictor of long-term performance is organizational health. For the latest OHI upgrade, McKinsey senior partner Aaron De Smet and coauthors spent the better part of a year collecting data and testing numerous hypotheses. A number of new practices now drive organizational health, including updating leadership styles, pursuing social responsibility, and using technology to create value.

•

Empowering workers. For decades, organizations have relied on authoritative leadership: using authority, pressure, and influence to get things done. In one of the biggest changes in the OHI, authoritative leadership does not predict organizational health and no longer appears in our model. Instead, leaders who empower employees to make their own decisions, and those who make decisions and follow through on them quickly, can promote healthy organizations. Discover six shifts in the management practices that drive organizational health.

Promote organizational health

—Edited by Belinda Yu, editor, Atlanta

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by "Only McKinsey Perspectives" <publishing@email.mckinsey.com> - 01:45 - 12 Sep 2024

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Want to know what makes organizations healthy?

What healthy organizations do

In the news

Common purpose is a strong predictor of organizational health.

On McKinsey.com