Working as a Management Consultant for many years, a have come across many different organizations, both highly functional and some less functional. How well an organization works is often referred to as organizational health.
According to a McKinsey Quarterly arcticle from Septermber 2017, organizational health is “an organization’s ability to align around a common vision, execute against that vision effectively, and renew itself through innovation and creative thinking” There is strong evidence that healthy organizations financially outperforms less healthy organizations.
The article lists many management practices that leads to 9 organizational outcomes, which again drives organizational health:
When an organization is healthy, it can effectively navigate challenges, capitalize on opportunities, and achieve its objectives while maintaining the well-being of its employees.