In today’s fast-paced business world, many organisations focus heavily on refining strategies, processes, and technology. While these are important, leadership and management experts like Patrick Lencioni argue that the true competitive edge lies in something much more fundamental: organisational health. In his renowned book, The Advantage, Lencioni makes a compelling case that healthy organisations—those that are cohesive, clear, and well-aligned—outperform their competitors, regardless of how “smart” the competitors might be.

What Is Organisational Health?

Lencioni defines organisational health as the ability of an organisation to function effectively, build trust, and foster a strong sense of alignment across all levels. This is not just about the absence of dysfunction but about creating an environment where employees are motivated, informed, and aligned with the organisation’s purpose. A healthy organisation leads to engaged employees, higher retention, and ultimately, better results.

Here are the key steps Lencioni outlines to achieve organisational health:

1. Build a Cohesive Leadership Team

At the core of a healthy organisation is a strong leadership team. Lencioni emphasises that leaders must be both cohesive and aligned. This means fostering an environment where trust is paramount, conflicts are healthy, and team members are committed to collective decisions. When leaders are united, they set a positive tone for the entire organisation.

2. Create Clarity

One of the biggest challenges in leadership and management is clarity. Leaders must define and agree on the organisation’s purpose, core values, and strategic priorities. Without clear direction, teams can become confused or misaligned. Lencioni stresses that clarity around the company’s mission and goals is critical for long-term success.

3. Overcommunicate Clarity

Here’s where many leadership teams fall short: assuming that once a message has been communicated, it’s been understood. Just because you think you’ve communicated something doesn’t mean it’s been received. LMI calls this “spaced repetition”—the practice of consistently reiterating key messages until they are fully absorbed by the team. This ensures that employees at all levels understand the organisation’s goals and how their work contributes to them.

4. Reinforce Clarity

Once clarity is achieved, it must be reinforced. Leaders and managers should embed their company’s values and goals into every process, from recruitment to performance management. Systems, processes, and incentives should be designed to support the organisational vision, ensuring that everyone is aligned and moving in the same direction.

Why Organisational Health Matters

In the realm of leadership and management, focusing solely on strategy and operations is no longer enough. Healthy organisations outperform their “smart” but dysfunctional counterparts every time. Companies with a clear, cohesive culture foster better collaboration, innovation, and commitment. They’re more resilient in the face of challenges and can adapt more quickly to changes in the market.

Conclusion

Organisational health is not a “nice-to-have”—it’s a critical driver of success. By building a cohesive leadership team, creating and overcommunicating clarity, and reinforcing it across all levels, companies can unlock their full potential. As Lencioni aptly states in The Advantage, “an organisation is healthy when it is whole, consistent, and complete.” For leaders, this should be the ultimate goal.