The Hindu Business Line : ‘Organisational health key to performance’

Bangalore, Nov. 3 Sustainable excellence remains elusive to most companies because they focus on performance alone, said Mr William Schaninger, Principal, McKinsey & Co.

“There is a link between organisational health and financial performance. At the heart of a healthy company is organisational effectiveness. Companies need to ask themselves if they are ready to drive change, spur growth and innovation and adapt to market shifts. We see a clear relationship between organisational and financial performance,” Mr Schaninger said at the two-day Quality Summit organised by the CII-Institute of Quality, which concluded on Friday.

Referring to the outcome of McKinsey’s study of over 4,000 companies, he said the issues highlighted were Direction, Accountability, Coordination/Control, External Orientation, Leadership, Innovation, Capability, Motivation, Environment and Values. McKinsey believed all outcomes are important but waving in nature and impact.

“We must be good at four to five of these practices and create a great recipe. Companies must embed healthy management practices and weave them deep into everything that is done in an organisation. Strategic, financial, operational and marketing health are all affected by organisational health,” Mr Schaninger said.

Participation

Thousand delegates from across India participated at the two-day flagship event to honour 356 companies for their quality performance. There were 25 speakers representing the US, UK, Australia, Japan and India, and 9 plenary sessions

Mr S.K. Kakkar, Head, CII-Institute of Quality, said, “Today McKinsey showed us all how only 23 per cent of the companies in the survey survived. An organisation has to change with time and be able to transform itself. The journey to achieve organisational excellence is not a static phenomenon; it happens gradually over a period of time as organisations change in form, fit and function”.

Social concerns

The summit highlighted the need for all-round development, being socially responsible, and promoted the cause of inclusive growth.

More Stories on : Management | Human Resources | Health

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
PSU steel firms hike prices, private players hold for now

Santro will continue to sell as Dodge Atos in Mexico

Enertia Awards presented

E-learning will benefit students from rural, remote areas: ICSI

‘Organisational health key to performance’

Hind Unilever, S. Africa’s Smollan tie up

KVK Energy gets $26-m funding from Old Lane

Fiat India may reschedule product launch

3 new units to produce ethanol from sorghum

Earnings growth slows down in Sept quarter

Bhilai Steel Plant output up

Hyundai Motor Oct sales down