What is & what produces organisational health?

The GFC highlighted that what we measure, for organisational health, determines what we get. As Colin Price, Director, McKinsey & Company, puts it in his Dec 14 2010 blog on MIX: “Focusing exclusively on performance  simply does not produce long-term shareholder value,  sustainable competitive advantage, or an ability to achieve the mandates of the organization in the public sector.”

Price proposes instead that organisational health is: “the ability to get aligned, to execute at a world-class level, and to renew.”  I’ll go for that. Those are the abilities I want, but I’m still left with the problem of what to do to produce that kind of health. 

Achieving that health requires us to see our organisations in a revolutionary new way: not as bureaucratic hierarchical machines but as communities of collaborating people. Seen in that light, the fundamental purpose of all the policies, procedures, systems, processes is to enable, to free people to collaborate better.

Thus organisational health has its roots in the health of the interrelationships between the people that comprise the organisation.  So what are healthy interrelationships and how do you get them?

Some useful perspectives can be drawn from the field of population health: the qualities of interrelationships that produce community wellness and productivity, and conversely illness and dysfunction are fairly well known and are evident, for instance, in the recovery approach to mental illness.

To achieve the kind of organisational health that Price proposes we have to revolutionise the way we see and manage our organisations: the purpose, nature and content of our organisational communication and interrelationships. That requires concerted, deliberate action to change the detail of the way we communicate with each other  at work. 

For more on this see How to Fix a Mental Organisation (December 2009) and my more recent blogs (December 2010).

Communication compulsory in only 50% of NZ undergraduate Business degrees when employers want skilled communicators

Research by Sandra Barnett & Susan O'Rourke, published in the December 2010 issue of the Communication Journal of New Zealand, shows that although employers want graduates skilled in communication, business communication is compulsory in only 50% of Business degrees from major NZ tertiary education institutions. On top of that, it's very difficult for employers to gauge what graduates may have gained from any communication courses that they did complete.

In contrast to USA & Europe, New Zealand undergraduate business education grew largely out of the accountancy field. As a result most Bachelors of Commerce have not included business communication. It has long been included in the NZ Diploma of Business but focused on skills seen as appropriate to the relatively narrow requirements of the accounting profession rather than to business in the wider sense.

With recent writers in the business management field calling for a transformation in management and organisational communication (see Stephen Denning, The death & reinvention of management. Nov 2010) it seems clear that a transformation in communication education is overdue.

Further indication of the importance of sophisticated communication skill is in the December 2010 McKinsey Quarterly.  In “The rise of the networked enterprise: Web 2.0 finds its payday” McKinsey report research showing that firms are experiencing measurable benefits in increased speed of access to knowledge, effectiveness of marketing, reduced communication costs and increased customer satisfaction.

I issued a challenge to communication educators at the December 2010 annual conference of the New Zealand Communication Association, to transform the way they organise and do communication education. Actually I challenge them to transform the way that business education generally is organised and done. Read my challenge here: Wanted: communication educators for management revolution.