Organizational health is all about the capacity of businesses to align and operate faster than the competitors. Organizational health will be focused more on the financial sustainability of a business, and it also will help increase the operational benefits. This will develop the employees and help them perform better in the competitive business landscape. While the business owners tend to learn from their own mistakes and improve their ability to compete in the market, organizational strength will also target the financial stability of a business and increase operational efficiency. Maintaining robust organizational health will help the leaders to create a continuous improvement path.
The initial concept of organizational health came out about 40 years ago when Warren Bennis, an American corporate consultant, introduced it as a way to determine the effectiveness of organizations. The dimensions of organizational health are adaptability to perceive the world and the coherence in identity. The businesses that attain the corporate health requirements can lead to more robust results and generate better returns for the stakeholders.
Frameworks of organizational health – Ram Chary
Organizational health can be explained through 5 frameworks that will help the corporates to reach their goals according to Ram Chary. By effectively using these five frameworks of organizational health and proper succession planning, business owners can communicate the desired outcomes to the stakeholders and lead the business through this successful transition. Let us explore.
- Aspire – The aspects of organizational health that will decide where the business wants to go and determine which parts look healthy to the company.
- Assess: It will help uncover the causes and mindsets, which undermine the concept of organizational health, and whether the businesses are ready to reach there.
- Architecture: This will help reshape the existing environment and create a healthy mindset. A proper assessment will support what the business has done to get there.
- Action – Proper execution will help to ensure that the change is infused continuously and its power is fully unleashed.
- Mastery: The corporate leaders with self-mastery should decide how to move forward and roll the change ahead.
Many studies related to organizational health have demonstrated that the most vital practices in this specialty will help businesses perform better and create a path of continuous improvement. For the family-owned businesses to ensure organizational health, they should maintain a clear history of the company and a proper grip on the environment. They should also have a passion for understanding the workforce’s capability and relate it to the organizational goals.
The biggest challenge for family-owned and non-family-owned businesses is to ensure competitive ways to develop their employees. Ram Chary points out that this will help meet all stakeholders’ needs, both internal and external. It also refers to developing internal policies and procedures that will encourage proper behaviors and maintain the competitive advantage. Successful businesses effectively utilize their intangible resources and capabilities to enhance the system and intellectual capabilities by ensuring competitive advantages of organizational health rather than having a set of physical assets.