Facts of Life
We are growing older, and thus we are supposed to go and see doctors once or twice a year, if not regularly. The reason is preventative care to maintain our health conditions. Seeing our doctor for regular medical check-ups will help us stay healthy and pick up early warning signs of illness. Many diseases can be picked up early when treatment is often more effective. Moreover, we recognize the importance of routine check-ups and maintenance for our car and heating system, but what about our business organization?
The same thing happens to organizations!
How healthy is your organization?
Organizations are also getting sick and older due to rapid change, stiff competition, and other relevant factors. Thus, they have to go and see a doctor to check on their health conditions and diagnose any early symptoms. All businesses have weaknesses as well as strengths. If you want to sustain and grow your business, addressing these issues is vital before they threaten your chances of long-term success. A business health check can be a critical part of that process.
Health conditions are not only about profit; many other factors help determine a company’s health, and profit is only one of them, as there might be unhealthy symptoms elsewhere. There are various reasons why and when an organization may conduct a health check:
Change in business requirements based on evolving market demands
Performance issues – whether perceived or documented
Loss of productivity
Difficulty training new employees due to complicated systems and procedures
Having the plan to migrate from a centralized operation to a corporate structure
Undergoing growth and expansion beyond the capabilities of the current resources
Preparing for an IPO, or new shareholders
Planning to group separate companies under one Holding
Need an external neutral party to assess the company's performance
Need to unify standards & procedures among various operations and companies
Any other reason for evaluating the status quo and receiving professional assessment
What is Organizational Health Assessment?
The OHA is a comprehensive management tool developed to diagnose and support organizations to implement systems and procedures essential for the organization’s running.
Essentially the organizational health check is a diagnostic of the organizational functioning (or health) that covers the following areas:
So, how to use it?
As a diagnostic tool – it will give you a comprehensive snapshot of how your organization stands at a particular point. The benefits of this are that it does not put pressure on your organization and gives you a good framework for future changes or improvements in your organization. Also, it could be used as a quality system to make improvements.