Organizational Health Consulting
An aligned and motivated workforce is the single greatest competitive advantage for any business. There is widely available research proving the positive revenue and profit impact of an engaged employee base and establishing systems to ensure accountability across an organization. Outside of the academic and management research, much has been written about the success of large companies with a focus on culture from Southwest Airlines to Zappos. However, despite this understanding and industry consensus, few organizations recognize organizational health as a priority, and fewer have an understanding of how to build a healthy company.
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Research on the relationship between company culture and business outcomes has consistently shown that strong, effective cultures predict positive business outcomes. Companies are made up of individuals with different motives, communication styles, interests, and skills. It’s common for this to result in complicated team dynamics, conflict amongst employees, and varying levels of morale, engagement, and results. Intentional team-building efforts that focus on the benefits of diversity and how to work with others is critical to building trust, improving collaboration, and achieving results with minimal politics.
Lack of a healthy culture comes at a high cost. Disengaged employees cost the U.S. between $450 and 550 billion in lost productivity each year and turnover costs are often estimated to be 100%-300% of the base salary of replaced employees.
It’s typical for companies to make a significant investment in benefit programs aimed at employee retention and lower healthcare costs, but fewer make the necessary investments in management coaching and performance management systems. Management is a skill. Identifying great managers, coaching and developing existing managers, and identifying / promoting high potential employees increases engagement, productivity, accountability, and overall morale. Great and aligned leadership is the #1 benefit for employees.
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Patrick Lencioni, the best-selling author and pioneer of the organizational health movement, simplified organizational health into four critical steps:
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Build a Cohesive Leadership Team
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Create Clarity
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Overcommunicate Clarity
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Reinforce Clarity
While the above four disciplines seem simple, behavioral and intellectual alignment across a company is difficult to achieve. It’s a process and once established, companies benefit from less politics, greater agility, better decisions, efficiency due to alignment of effort and purpose, and employee engagement and retention. This results in 1.9x increased likelihood of having above-median financial performance.
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Utilizing the Organizational Health model developed by Patrick Lencioni, Fiedotin Consulting can support the portfolio company in realizing its full potential.