Organizational Health Index

  • The Organizational Health Index enables leaders to pinpoint and fine-tune their organization’s ‘health’: its capacity to deliver above-average financial and operating performance over the long term.

The Organizational Health Index (OHI) measures and tracks the elements of organizational effectiveness directly related to financial and operational performance and offers actionable insights into areas of improvement. With hard measures for 'soft' issues, executives can bring lasting change to the mindsets and behaviors that impact the bottom line.

The OHI score provides the single best predictor of an organization’s future performance capacity. We combine this with our global and industry benchmark and management practice-based ‘recipes for success’ to provide a clear road map to improve your organization’s health relative to peers.

What OHI provides

The OHI Solution includes a comprehensive health assessment to help organizations build a customized road map to enhance long-term performance. Distinct modules provide flexibility to customize health management to an organization’s evolving needs.

OHI enables organizations to:

  • Measure health using an online survey to diagnose strengths and weaknesses
  • Define ‘signature’ combinations of health management practices and prioritize key areas for improvement
  • Develop interventions and define road maps in action-planning workshop(s)
  • Implement targeted actions to improve health in key areas
  • Embed health optimization into performance management cycles through ‘pulse checks’ and interactive course-correction sessions

“It was a challenge for me and for my leadership team to explain why we were spending so much time on the ‘soft stuff’... We had lots of conversations explaining that if we did the soft stuff right, our employees would be more able to do what they’re supposed to do...”

CEO, Global Transportation Company

 

How OHI works

The OHI provides a structured way to move from an overall health diagnosis to specific systemic action.

Score

The OHI benchmarks your organization’s overall health using a normative predictive measure based on nine critical organizational outcomes. This allows you to compare your health and outcome scores to global and sector benchmarks and analyze them by unit, level, or role.

Drivers

The OHI profiles and addresses the strengths and weaknesses of the underlying management practices  – ‘what managers do and don’t do’ – that drive the health of your organization. It compares your practice profile to global and sector benchmarks and allows analysis by unit, level, or role.

Additional modules (e.g., interviews, targeted focus groups) can be deployed to gather qualitative input from the organization about these key drivers, enabling rich discussion-based workshops to align leadership on health priorities. These modules can also help to uncover and address the mindsets and behaviors that could enable or hinder change in your organization – allowing you to tailor overall education and capability-building efforts to meet your organization’s specific needs.

Focus

Based on the OHI results, leaders can define a 'signature combination' of priority practices that they will drive throughout the organization to enable high levels of health and long-term performance. Our research has identified four proven ‘archetypes’ of health success. With these as a starting point, leaders can then set specific health aspirations – including which practices to fix, strengthen, or de-emphasize – that are tailored to leverage existing strengths in order to compete effectively.

System

Ultimately, successful health management requires embedding health programs into performance management cycles, with specific measures to manage over time. The OHI enables your leadership team to maintain visibility into progress and reinforce the importance of measures through targeted ‘pulse checks,’ testing the effectiveness of the actions you have taken and refining your road map as necessary.

 

Contact us at: OHI@mckinsey.com


America
Carla Arellano + 1 (212) 446-8695

Elizabeth Irons +1 (202) 662-1183

Amelia Oliveira +1 (312) 725 1119

Asia
Brooke Weddle +82 (2) 398-2717

  

EMEA

Piotr Kuczynski +48 (71) 393 71 38

Lee Baz-Sanchez +44 (207) 961 6049