Organizational Health Index (OHI) - McKinsey Solutions

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About OHI The Organizational Health Index solution measures and tracks the organizational elements that drive financial performance. It provides a simple but powerful road map for leaders and managers to improve organizational health. Linking organizational health and performance Our research has proven that the healthiest companies are more than twice as likely to have EBITDA margins above their industry median Nine elements of organizational health Proven link to financial performance “McKinsey’s behavioral work is the most profound I’ve been involved in – the impact is extraordinary.” Chief Executive Officer, Global Telecoms Company Probability of earning above-median EBITDA margin Percent 68 31 48 2.2x Weak Good Great Levels of health Shifting your organization toward higher performance u Assess underlying mindsets and behaviors that impact financial performance u 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 success u Prioritize intervention programs needed to improve health u Periodically track health to ensure ongoing progress and catch potential issues early Connecting with experts u Gain important, and often unexpected, insights identified by analysts with experience across many companies, industries, and geographies u 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 institutions
What makes OHI unique The OHI goes beyond a typical engagement or employee survey. It prescribes interventions to improve those elements of health directly linked to financial performance. For the first time, managers are saying they know where to focus organizational efforts to impact the bottom line. The OHI is unique in three ways : Proven link between health and performance u McKinsey has identified the nine elements of organizational health that impact financial performance and help organizations change the underlying mindsets and behaviors “McKinsey provides a unique combination of operational and organizational expertise.” Chief Executive Officer, Energy Corporation Competitive insights u The OHI solution includes benchmarks against a continuously growing, proprietary database of more than 600 companies in all industries across the globe Archetypes u Instead of a “one-size-fits-all” approach, McKinsey has identified four patterns of behaviors, or archetypes, to help a company identify its optimal path forward http://solutions.mckinsey.com/ohi
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Organizational Health Index (OHI) - McKinsey Solutions

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