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Currently viewing the tag: "business performance"

bright-cardiac-cardiology-433267The typical approach to improving productivity focuses on assessing variance in quality, time, rate, service, or cost, around which management systems develop incrementally or revolutionary.

Organizational Health Index, on the contrary, focuses on improving performance through improved alignment of organizational systems. For example, by improving competence of key components such as mindset, work design, technical expertise, or relationships; or through improving the interface between work processes, or the interaction between work practices.

Simply put, the capability of an organization to achieve its strategic goals and their alignment defines an organization’s health. The Organizational Health Index (OHI) leverages logical consistency to manage the organizational health. OHI entails quantifiable evaluations, diagnostics and recipes for success that allow the leaders to calculate and accomplish the organizational health goals, required to sustain long-term performance.

Organizational health refers to the need to address soft (leadership, direction or culture) and hard factors (accountability, reporting lines, or controls) affecting performance. The organizational health index is an ongoing continuous improvement system applicable across an organization. The OHI measures not only the current health level, but also determines the next steps for an organization. There are numerous advantages to the organizations implementing it, including:

  • Benchmarking organizational health against the rivals.
  • Aligning the organizational systems, units, and people by communicating shared goals and priorities; and highlighting and plugging the disconnects.
  • Improving organizational performance by pinpointing variances and opportunities to improve health and drive business success.

The OHI Diagnostic Framework provides a road map for leaders and managers to improve organizational health. It measures the organization against the 9 most critical health outcomes; these outcomes comprise both hard and soft organizational elements. Careful measurement of these 9 elements has a proven link with improved financial performance and earning above-average EBITDA margins:

  1. Direction
  2. Accountability
  3. Coordination and control
  4. External orientation
  5. Leadership
  6. Innovation and Learning
  7. Capabilities
  8. Motivation
  9. Work Environment
Org Health Index
There are 37 management practices under these 9 health outcomes, developed to help companies identify the behaviors most critical to their health journey:

Direction

  • Shared Vision
  • Strategic Clarity
  • Employee Involvement

Accountability

  • Role clarity
  • Performance contracts
  • Consequence Management
  • Personal Ownership

Coordination and Control

  • People Performance Review
  • Operational Management
  • Financial Management
  • Professional Standards
  • Risk Management

External Orientation

  • Customer Focus
  • Competitor Insights
  • Business Partnerships
  • Government and Community Relations

Leadership

  • Authoritative Leadership
  • Consultative Leadership
  • Supportive Leadership
  • Challenging Leadership

Innovation and Learning

  • Top-down Innovation
  • Bottom-up Innovation
  • Knowledge Sharing
  • Capturing External Ideas

Capabilities

  • Talent Acquisition
  • Talent Development
  • Process based Capabilities
  • Outsourced Expertise

Motivation

  • Meaningful Values
  • Inspirational Leaders
  • Career Opportunities
  • Financial Incentives
  • Rewards and Recognition

Work Environment

  • Open and Trusting
  • Internally Competitive
  • Operationally Disciplined
  • Creative and Entrepreneurial

Years of research have shown the healthiest companies to align with 1 of the 4 recipes for organizational health. These recipes constitute concrete management practices and activities for the organization to implement.  Leaders need to acknowledge and align to the recipe that is appropriate for them. They can use these success recipes to plan and implement a change program that results in sustainable outcomes. The 4 recipes for organizational health are:

  1. Leadership
  2. Market Maker
  3. Continuous Improvement
  4. Talent

Interested in learning more about the other recipes for Organizational Health and the OHI Diagnostic Framework? You can download an editable PowerPoint on Organizational Health Index here on the Flevy documents marketplace.

Are you a Management Consultant?

You can download this and hundreds of other consulting frameworks and consulting training guides from the FlevyPro library.

Here is a list of 4 PowerPoint documents that convey over 100+ different business frameworks and management models. They cover just about every business concept you can imagine. At the bottom, I’ve listed all the frameworks included in each document.

23 Corporate Strategy and Management Models
https://flevy.com/browse/business-document/corporate-strategy-and-management-models-129

30 Business Performance Improvement Models
https://flevy.com/browse/business-document/business-performance-improvement-models-218

28 Organization, Change, and HR Models
https://flevy.com/browse/business-document/organization-change-and-hr-models-616

28 IT Management Models
https://flevy.com/browse/business-document/it-management-models-224

Flevy’s full collection of PowerPoint templates can be found here: https://flevy.com/function/powerpoint-templates-ppt

* * * *

CONTENTS OF CORPORATE STRATEGY AND MANAGEMENT MODELS

1. 3 C’s
2. ADL Matrix
3. Acquisitions Integration Approaches
4. Blue Ocean Strategy
5. Capability Maturity Model
6. GE-McKinsey Matrix
7. OODA Loop
8. Profit Pools
9. Resource-based View of Firm
10. Scenario Planning
11. Strategy Maps
12. Application Portfolio Optimization
13. Value Stream Mapping
14. Six Thinking Hats
15. 4 P’s Marketing Mix
16. 7 P’s Marketing Mix
17. 6 Change Approaches
18. Cultural Dimensions Theory
19. Six Sigma Quality Management
20. Change Management Iceberg
21. Organizational Learning
22. Performance Prism
23. Crossing the Chasm

CONTENTS OF BUSINESS IMPROVEMENT MODELS

1. ISO 9001 Quality Management Model
2. Baldrige Performance Excellence Model
3. EFQM Business Excellence Model
4. Balanced Scorecard
5. Hoshin Kanri Model
6. Benchmarking Model
7. Business Process Re-engineering Model
8. Shingo Model for Lean Transformation
9. Lean Management Model (TPS)
10. Lean Leadership & Kaizen Model
11. Lean Maturity Model
12. Value Stream Mapping
13. Eight Types of Waste
14. Lean Levers
15. Gemba Framework
16. Cause & Effect Diagram ( Fishbone Diagram, Ishikawa Diagram)
17. 5S Principles
18. Plan-Do-Check-Act Model
19. PDCA Problem Solving Process
20. Total Productive Maintenance (TPM) Pillars
21. DMAIC Process Improvement Model
22. Law of 10
23. Training Within Industry (TWI)
24. A3 Storyboard Template
25. PACE Prioritization Matrix
26. Payoff Evaluation Matrix
27. Cost of Quality Model
28. SERVQUAL Model
29. ADKAR Model
30. Kotter Change Management Model

CONTENTS OF ORGANIZATION, CHANGE, HR MODELS

1. IMPA HR Competency Model
2. NAPA Competency Model for HR Professionals
3. Ulrich’s HR Competency Model
4. Ulrich’s Matrix on the Four Roles of HR
5. The Harvard Model of Strategic HRM
6. AHRI Model of Excellence
7. People Capability Maturity Model (PCMM)
8. SHRM Elements for HR Success
9. Ulrich’s Stages of Employee Connection to the Organization
10. Talent Management Framework
11. Novations Four Stages of Contribution Model
12. Ulrich’s Five Rules for Leadership (Leadership Code)
13. ASTD Competency Model
14. Senge’s Learning Organization Model
15. High-Impact Learning Organization Model
16. Tuckman’s Model of Team Development Stages
17. The Emotional Competence Framework
18. Bridges’ Transition Model
19. Lewin’s Three Stage Change Model
20. The McKinsey 7S Model
21. ADKAR Change Model
22. Kotter’s Change Management Model
23. Cause & Effect Diagram for HR Systems
24. ISO 9001 Quality Management Model
25. Baldrige Performance Excellence Model
26. EFQM Business Excellence Model
27. Kaplan & Norton Balance Scorecard
28. Xerox Benchmarking Model

CONTENTS OF IT FRAMEWORKS

1. IT Infrastructure Library (ITIL) Model
2. ISO/IEC 20000 IT Service Management Model
3. ISO/IEC 27000 Information Security Management Systems Model
4. COBIT 5 Model
5. Capability Maturity Model Integration (CMMI)
6. People Capability Maturity Model (PCMM)
7. ISO/IEC 15504 (SPICE)
8. Organizational Project Management Maturity Model (OPM3)
9. Portfolio, Programme, Project Management Maturity Model (P3M3)
10. Portfolio, Programme, Project Office Model (P3O)
11. PRINCE2 Project Management Model
12. IDEAL Model
13. Waterfall Model
14. Agile Model
15. Scrum Model
16. Enterprise Data Architecture Models
17. COPC-2000 Model
18. Lean Levers for IT Outsourcing
19. Cause & Effect Diagram ( Fishbone Diagram, Ishikawa Diagram)
20. DMAIC Process Improvement Model (Six Sigma)
21. ISO 9001 Quality Management Model
22. Malcolm Baldrige Performance Excellence Model
23. EFQM Business Excellence Model
24. Balanced Scorecard
25. Xerox Benchmarking Model
26. SERVQUAL Model
27. ADKAR Model
28. Kotter Change Management Model

OE Consulting has just uploaded a new document on Flevy that’s a collection of PowerPoint templates illustrating 25 different Business Performance Improvement models and frameworks.  Check it out here:

The 25 business models are:

  1. ISO 9001 Quality Management Model
  2. Baldrige Performance Excellence Model
  3. EFQM Business Excellence Model
  4. Balanced Scorecard
  5. Benchmarking Model
  6. Lean Management Model (TPS)
  7. Lean Leadership & Kaizen Model
  8. Value Stream Mapping
  9. Eight Types of Waste
  10. Lean Levers
  11. Gemba Framework
  12. Cause & Effect Diagram
  13. 5S Principles
  14. Plan-Do-Check-Act Model
  15. PDCA Problem Solving Process
  16. Total Productive Maintenance (TPM) Pillars
  17. DMAIC Process Improvement Model
  18. Law of 10
  19. Training Within Industry (TWI)
  20. A3 Storyboard Template
  21. PACE Prioritization Matrix
  22. Payoff Evaluation Matrix
  23. Cost of Quality Model
  24. SERVQUAL Model
  25. Change Management Model