McKinsey Organizational Health Index

The McKinsey Organizational Health Index (OHI) is a tool used to measure the overall health of an organization. It is based on a 2x2 matrix that assesses four key areas of organizational health: strategy, structure, processes, and people.

At a very high level, the McKinsey Organizational Health Index is used in the context of business, organizational health.

McKinsey Organizational Health Index quadrant descriptions, including examples
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What is the McKinsey Organizational Health Index?

A visual explanation is shown in the image above. The McKinsey Organizational Health Index can be described as a matrix with the following quadrants:

  1. Strategy: Strategy includes the organization's vision, mission, and goals, e.g. developing a five-year plan.
  2. Structure: Structure includes the organization's organizational design, decision-making processes, and governance, e.g. creating a clear chain of command.
  3. Processes: Processes includes the organization's operational processes and systems, e.g. implementing an efficient workflow.
  4. People: People includes the organization's culture, leadership, and engagement, e.g. fostering a positive work environment.

What is the purpose of the McKinsey Organizational Health Index?

The McKinsey Organizational Health Index (OHI) is a tool used to measure the overall health of an organization. It is based on a 2x2 matrix that assesses four key areas of organizational health: strategy, structure, processes, and people. The OHI is designed to help organizations identify areas of strength and weakness, and to provide a framework for improving organizational health.

The OHI matrix is divided into four quadrants, each representing one of the four key areas of organizational health. The top-left quadrant represents strategy, which includes the organization's vision, mission, and goals. The top-right quadrant represents structure, which includes the organization's organizational design, decision-making processes, and governance. The bottom-left quadrant represents processes, which includes the organization's operational processes and systems. The bottom-right quadrant represents people, which includes the organization's culture, leadership, and engagement.

The OHI matrix is used to assess an organization's overall health by evaluating each of the four key areas. Each area is scored on a scale of 1 to 5, with 1 being the lowest score and 5 being the highest score. The overall score is then calculated by taking the average of the four scores. The higher the score, the healthier the organization.


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What templates are related to McKinsey Organizational Health Index?

The following templates can also be categorized as business, organizational health and are therefore related to McKinsey Organizational Health Index: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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