The next wave of strategy: organizational health

December 16, 2014

Read time 1 min

Since Bruce Henderson, the founder of Boston Consulting Group, started talking about corporate strategy in the 1960s, companies have been obsessed with it. The first wave of strategy was positioning. Where is my business compared to competitors? The second wave was processes. How do we design and manufacture a product quicker than the competition?

The third wave of strategy is a focus on people and we’re only starting to embark on that journey.

People

The single greatest advantage any company can achieve is organizational health. Yet it is ignored by most leaders even though it is simple, free, and available to anyone who wants it” says Patrick Lencioni in The Advantage.

A healthy organization has minimal politics, minimal confusion, high morale, high productivity and low staff turnover. An unhealthy one turns work in to drudgery.

Organizational health and profitability are often considered to be on the opposite ends of a spectrum. What companies are now figuring out is that, instead, organizational health is a multiplier for profits.

Yet, this is bigger than profits. This is about everyone being entitled to meaningful work. When working on something meaningful, in an organization that supports it, we’ll be happier and we’ll make those around us happier. That’s why this is important.

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