This just in folks! Water is wet, apple pie is delicious, and organizational health is essential for firm performance.
I don’t know how we’re still at the point where we need to prove this to people, but it seems like it’s still the case. After all, it seems like some companies are taking a “beatings will continue until morale improves” approach when it comes to creating innovation and delivering for customers. Nonetheless, McKinsey studied over 2,500 firms in “every industry” and found that healthy organizations delivered 3x the returns as they are unhealthy peers. And this isn’t just a rich companies are good at things situation: companies that improved their organizational health drove 18% higher profit the next year. Good for sending to your boss!