McKinseySolutions_OHI

Organizational Health Index(OHI)Using ‘Organizational Health’ to buildand sustain financial performanceShifting your organization toward higher performance u Assess underlying mindsets and behaviors that impact financial performanceu Benchmark your organization’s health index against your industry and high performers u Understand your organization’s archetype to identify the six to seven “must-have”practices for successu Prioritize intervention programs needed to improve healthu Periodically track health to ensure ongoing progress and catch potential issues early Connecting with expertsu Gain important, and often unexpected, insights identified by analysts with experience across many companies, industries, and geographiesu Develop the best solution for your company by drawing upon McKinsey’s deep organizational expertise and broad experience serving 96% of the world’s leading global institutionsCompetitive insightsu The OHI solution includes benchmarks against a continuously growing, proprietarydatabase of more than 600 companies in all industries across the globeArchetypesu Instead of a “one-size-fits-all” approach, McKinsey has identified four patterns ofbehaviors, or archetypes, to help a company identify its optimal path forward/ohiThe Organizational Health Index solution provides detailed findings for how your company is performing on the nine elements of health related to financial performance. These findings include ‘sore’ points as well as best practices for business units, functional groups, and organizational layers.McKinsey’s Basic BeliefsLinking organizational health and performanceThe OHI solution…Focus on the right practicesAlthough a company must achieve a minimum threshold level for all management practices, they need distinctiveness in only six to seven practicesHealth mattersFinancial performance is driven by organizational health - 9 elements with 34 underlying management practicesOrient for actionThe management challenge is to fully understand its archetype and select the right combination of management practices necessary to deliver outstanding performance and healthKnow your organization’s archetypeMcKinsey has identified four patterns of organizational behavior or “archetypes”, that most companies fall into: market focus, execution edge, talent/knowledge core, and leadership-drivenProvides hard measures for the soft issues that impact financial performanceBenchmarksorganizational health against a wide range of competitors and top performersIdentifies and prioritizes needed changes and intervention programsTracks progress and catches potential issues early1234Comprehensive OHI assessment surveyuAn online employee survey of an organization’s entire population or specificsegments (paper-based survey available for employees without computer access)u In-depth interviews and focus groups to gain a deeper understanding of the key issues uAdditional survey modules, if needed, to assess specific areas; for example, social networks, top management effectiveness, change readinessRigorous analysis and benchmarkingu McKinsey experts analyze organizational health results for the overall organization, business units, functional groups, management layers, and other subgroups as neededuExperts benchmark results against a proprietary database of more than 600 companies codified in a set of management reports to guide the problem solvingProblem-solving session and identification of initiativesuMcKinsey leaders share OHI results with leadership and facilitate managementworkshops to discuss implications, set aspirations, develop interventions and initiatives, and identify milestonesTracking progressu The OHI survey is conducted periodically to comprehensively or selectively track progress uMcKinsey experts discuss with management key learnings from the tracking survey including progress madeFrom designing the approach to tracking progress, the Organizational Health Index solution relies on McKinsey’s close collaboration with youand your management team.For more information on OHI, visit /ohior send an email to ohi@For more information on McKinsey Solutions, visit /catalog or send an email to mckinseysolutions@O H I -1007 V 01。