Leadership and the healthy organisation
Leadership and the healthy organisation
A truly healthy organisation is one which strategically integrates employee well-being into its business objectives and reinforces it through improving and developing their leadership practices.
Research shows that healthy companies dramatically outperform their peers. The top quartile of publicly traded companies in McKinsey’s Organizational Health Index (OHI) deliver roughly three times the returns to shareholders[1] as those in the bottom quartile.
Healthy organisations exhibit a vitality and vibrancy that delivers measurable and sustainable results. They have a highly engaged workforce that optimises the talent pool, and they have a strong pipeline of ideas and innovation. How does focussing on the qualities of leadership enable organisations to rapidly improve their health and deliver performance-driven results?
How Leadership impacts on organisational health
One method focusses on Leaders, sometimes called the ‘Leadership Factory’[2] approach to organisational health. Here, leaders are tasked with addressing new mind-sets that drive desired behaviours, build committed and engaged teams around them and develop fast feedback loops to monitor progress and course-correct when necessary.
Leadership influence on employee behaviours for organisational health [3]
Globalisation and today’s business landscape often drive rapid change in product and service mixes. This necessitates high-potential leaders with a global-mindset who are capable of directing next-generation businesses. Organisations that take this approach develop and deploy strong leaders, supporting them through coaching, formal training, and giving them the right growth opportunities.
They commonly develop critical pathways for their leaders through a ladder of opportunities that culminate in a high-profile role, promoting to prominence those leaders who are visibly inspirational and with values strongly aligned to strategy and culture.
Values-based and purpose -driven
Organisations would be right to focus on values alignment across their team of leaders over a leader’s individual experience or skills. A leader has direct influence on the careers of those they lead, and where their values match that of the organisation this will lead to a waterfall effect to their teams. Coaching and developing each person within the organisation, empowers them to contribute, be purpose-driven and take personal responsibility for making a mission a reality. Values based leaders typically find growing their team’s careers a pleasure and a purpose-driven team will develop and grow and create organisational health. Increased organisational health driven by high-functioning leadership will naturally increase internal promotions, improve retention and make it easier to attract excellent external talent.
Consistent focus
In addition to aligning with company values and culture, leaders must hold themselves accountable for staying focused on what helps realise the strategic objectives of their organisation. Leaders who constantly redefine what is mission-critical create confusion, add friction and deplete the health and energy of the businesses they manage. Leaders with a laser-like focus on plans that make the mission a reality inspire the rest of the organisation to remain focused on their respective goals as well.
Daily behaviours
Leaders influence the daily behaviours of their teams through their actions. For exxample, a leader that consistently praises workers for putting in a 60 hour week does not allow their reports the freedom they need to behave in a healthy way; perhaps when they need a day off to balance their work and home life. Applauding those who are highly productive and make balance a priority is more likely to create a great culture and drive engagement.
Two-way communication
Leaders that can articulate the goals clearly are invaluable. Good leaders will flow communication effectively in a downward fashion; great leaders will have teams that feel confident and secure in communicating upwardly. Intuitive and open leadership will be comfortable receiving feedback, both positive and negative, from their reports when needed.
Being a healthy leader requires integrity and compassion, as well as truly inclusive, and respectful. Healthy leadership happens when the individual or the group do their utmost to serve others ethically and respectfully, while acknowledging that there can be negativity and be willing to address it to solve issues.
Summary
Selecting and developing the right leadership can have a multiplier effect on the health of an organisation. From talent attraction and engagement, through to productivity, the sphere of influence for the great leader is vast. Finding the best in leaders and Investing in their personal development is an investment that will be felt throughout the organisation, directly impacting financial results, company culture and organisational health.
References
[1] https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/the-four-building-blocks--of-change
[2] https://www.mckinsey.com/solutions/orgsolutions/overview/organizational-health-index
[3] https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/the-hidden-value-of-organizational-health-and-how-to-capture-it
Alumni
Effective leaders are one of the most important assets within an organisation and recognising and realising their potential will not only deliver a competitive advantage to aid your business strategy but also improve leadership attraction and retention. We believe that a thorough understanding of the complex and unique situation of your organisation today and the skills required in the profile of the leader you are seeking in the future, is key to finding you the right person to build your organisational health.
We have international presence, global reach and local knowledge and our consultants work as one team focussed on delivering you the right leadership candidates. To further enable success, we actively encourage our clients to participate in prioritising and cultivating the right candidates and develop the effectiveness of their current leadership, in a truly collaborative partnership.
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