health n. freedom from disease; good condition;
normal and efficient functioning.
What is organizational health? Simply, healthy organizations thrive and contribute to local, national, and world economies. Unhealthy organizations eventually loose meaning and die. They go out of business.
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Organizational health can be diagnosed in three dimensions;
organizational purpose/vision (spirit), organizational control
structures (mind), and work flow (body). Not only do each of these
dimensions need to be 'healthy' all three must be in balance.
Organizational consulting, acting as a physician to the organization,
requires an understanding of all three dimensions, and the skills
to create alignment and balance.
Health begins with the overall purpose/vision of the organization, this is the spirit of the organization.
Purpose is the reason for being. Vision is how that
purpose is to be realized over time. This overall purpose must
be visible and easily identified by all those that contribute
value to the organization. It is not words on a piece of paper
or plaque. It is felt as you enter the sphere of the enterprise.
Is the stone cutter cutting stone or building a cathedral? Are
you in the buggy whip business or the transportation control devices
business? One defines your product the other defines your purpose
and vision. If your customers and every worker cannot clearly
state your organizations purpose in their own words, you and your
organization are in danger. Additionally, is your purpose synchronous
with your customers value chain and the principles and purpose
of the overall economy. If not, you and your organization is or
will become unhealthy. Organizational purpose is not static,
it is not a statement. It is dynamically formed and maintained,
ultimately stated in the actions of each individual, not words.
But at any point of time it can be expressed in words by any member
of a healthy organization, from the CEO to the administrative
clerk. Ultimately, does the organization meet the immediate and
long term needs of the customer? Not just the customer who pays
for goods and services, but the customers customer chain, equity
owners, and the overall economies that compete across the globe.
The second dimension are the overall control structures
of the organization, what I refer to as the mind of the organization.
How does the organization know how it is doing (introspection)?
What are the mechanisms for ensuring value to the customer. How
are responsibility and resources partitioned? All these need
to be aligned with the organizations purpose. That is, aligned
with the long term products, services, and value delivered to
the customers value chain and the return on investment to the
equity owners. If this alignment is not easily seen, the organization
is or will become unhealthy.
The third dimension is the mechanisms or work steps
in place to deliver the organizations value, what I refer to as
the body of the organization. This is the area that most process
consultants put most of their energy. There are many methods and
tools developed to map and analyze work processes. Many times
the mechanics of the process are redesigned only to find that
the projected benefits are not realized. I have found that the
key to real process improvement is that each person performing
each work step must be self aware of their value to the customer
chain, equity owners, and economies. I know this is a mouthful,
but it is the key to synergistic adaptation to market forces.
When the worker understands the place and purpose of their specific
tasks they naturally will optimize the work process to the organizational
purpose of providing value to the customer chain. The value
of process mapping and analytical methods is to help people see
where they fit, how their contribution matters. Or if their
work step doesn't matter (add value) it helps them understand
the need to eliminate or change the work.
schiz"o-phre'ni-a n. a mental disorder, splitting
of the personality from reality and fantasy.
When there is a splitting of stated purpose and actions
there is a state of dysfunction. This is very damaging to people
and the enterprise as a whole. Human nature adapts to the gap
between purpose and actions by creating local or rationalized
purpose, values, and processes. This takes many forms, some are
desperate expressions towards a healthier existence, and others
are survival driven, attacking other functions within the enterprise.
I see this locally rationalized enterprise everywhere. As a consultant
it is sometimes dangerous to even talk about. Senior management
have grown skilled in creating and manipulating the underground
enterprise to achieve power. The gap between the formal enterprise
and underground enterprise can do tremendous damage to the individual
worker. It undermines authentic purpose and action. By fragmenting
what "doing the right thing" is, it can put into conflict
emotions of survival with the need to contribute to the greater
good.
As a consultant I must confront this. This is the
Emperor's New Cloths problem. The actions say "make the numbers",
the words say "customer is number one". When does 'shutting
down the line' get you promoted and when does it get you fired?
If there is a conflict in stated purpose versus implied purpose
where is the real work? Does the consultant 'shut down the line'
and possibly get fired? The consultant's own sense of purpose
and guiding principles will answer this. Ultimately to be successful
the consultant must help the enterprise bring purpose, control
structures, and actions into alignment.
There are methods, tools, and techniques available
to achieve health and balance across the organization. When you
approach health through a balance and alignment of these dimensions,
you will know it. It takes on a life of it's own. You will also
know if balance and alignment are not present, no matter how hard
you push nothing with change.
So, enough insights. What can be done to generate
and channel this adaptive energy that achieves personal and enterprise
purpose. Read on.