McKinsey Organizational Health Index

The McKinsey Organizational Health Index (OHI) is a diagnostic tool used to measure and improve the overall health of an organization. It evaluates various aspects such as leadership, culture, and capabilities to provide a comprehensive view of how well an organization is functioning and its potential for long-term success.

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

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. High Health, High Performance: Organizations in this quadrant are thriving with strong health and high performance. Example: A tech company with innovative products and a positive work culture.
  2. High Health, Low Performance: Organizations here have strong health but are not performing well. Example: A non-profit with a great culture but struggling to meet its goals.
  3. Low Health, High Performance: Organizations in this quadrant perform well but have poor health. Example: A high-revenue corporation with a toxic work environment.
  4. Low Health, Low Performance: Organizations here are struggling with both health and performance. Example: A failing startup with low morale and poor results.

What is the purpose of the McKinsey Organizational Health Index?

The McKinsey Organizational Health Index (OHI) is a comprehensive framework designed to assess the health of an organization. It is based on extensive research and identifies nine key elements that contribute to organizational health: Direction, Leadership, Culture and Climate, Accountability, Coordination and Control, Capabilities, Motivation, External Orientation, and Innovation and Learning.

The OHI matrix is a 2x2 format that helps organizations visualize their strengths and weaknesses across these elements. The matrix is divided into four quadrants, each representing a different combination of organizational health and performance. By plotting their current state on the matrix, organizations can identify areas for improvement and develop targeted strategies to enhance their overall health.

For example, an organization might find that it excels in leadership and culture but lacks in innovation and learning. This insight allows them to focus on specific areas that need development, ultimately leading to a more balanced and healthy organization. The OHI is widely used by businesses, non-profits, and government agencies to drive sustainable performance and long-term success.


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What templates are related to McKinsey Organizational Health Index?

The following templates can also be categorized as business, management, organizational development and are therefore related to McKinsey Organizational Health Index: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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