Seven years ago, I decided to undertake a challenge that pushed me beyond my limits — I ran my first and only marathon, one that I managed to complete within my personal goal: crossing the finish line running (not crawling) and in less than 4 hours and 30 minutes. While the physical challenge was immense, what stayed with me was the sense of accomplishment and the lessons about discipline, resilience, and the structured approach needed to achieve peak performance. These principles apply just as much to organizations striving for sustained success.
Health is the foundation of our ability to function effectively, both individually and organizationally. But true health isn’t merely the absence of illness — it’s about maintaining a state of readiness and strength.
Health plus fitness equals performance. It’s a simple equation that applies both at an individual level and from an organizational perspective. Just as a person’s health and physical condition determine their ability to perform, a company’s organizational health and fitness directly determine its ability to perform, adapt, and thrive.
What Defines Organizational Health and Fitness?
Many models attempt to capture the essence of organizational performance, but one of my favorites for its clarity and simplicity is the framework developed by Colin Price and Thomas Keller (Beyond Performance by McKinsey & Company). This model asserts that an organization’s success depends on three key capabilities:
- Setting a clear direction and aligning resources and efforts toward common goals.
- Executing effectively to translate strategy into tangible results.
- Adapting and renewing in response to internal and external changes.
At its core, this means having a well-defined goal, communicating it effectively, mobilizing the organization, assembling the necessary resources, and maintaining the flexibility to pivot when necessary. Simple in theory — challenging in practice.
To make this framework actionable, Price and Keller identified nine critical elements that influence an organization’s health:
- Direction – Is there a clear, well-defined strategy guiding the organization?
- Leadership – Do leaders have the capability to inspire, align, and drive execution?
- Culture and Values – Do our organizational values support progress toward our goals?
- Accountability – Are roles and responsibilities clearly defined? Are people truly accountable for outcomes?
- Coordination and Control – Do our structure, processes, and systems enable efficient execution?
- Capabilities – Do we have the necessary individual and organizational skills to achieve our objectives?
- Motivation – Are employees engaged and motivated to work toward shared goals?
- External Orientation – Are we sufficiently attuned to customers, competitors, and the broader market?
- Innovation – Do we foster a culture of continuous improvement and creativity?
It is the specific interaction of these elements, unique to each organization, that determines its health and fitness — and ultimately, its performance. But just as achieving peak physical performance for an individual requires continuous adjustments — balancing sleep, nutrition, exercise, gear, and even adapting to external factors such as weather — optimizing organizational health is a dynamic process. The interplay of these nine elements defines an organization’s overall well-being, making it far more complex than it may seem. Success isn’t just about excelling in one or two areas: it’s about the continuous calibration of all these factors to sustain long-term performance.
Diagnosing and Strengthening Organizational Health
A proper diagnosis is essential for any organization that wants to improve performance and sustain long-term success. It helps identify strengths and weaknesses, ensuring that leaders make informed decisions.
Assessing an organization’s health and fitness helps leaders identify the root causes of its performance. Just as a doctor wouldn’t simply treat the symptoms of an illness without identifying the root cause — a fever, for example, could be a sign of a minor cold, but it could also indicate a more serious or even incurable condition. Organizations must go beyond addressing surface-level challenges — such as declining sales, high turnover, or inefficiencies — to identify the fundamental issues that drive these symptoms.
Take, for example, a former client who initially blamed their high employee turnover on flaws in their hiring process. However, a deeper assessment revealed a more critical issue: a lack of clear strategic direction, weak leadership, and a culture that failed to foster engagement and belonging. Had they only focused on refining recruitment efforts, the root problems would have remained unaddressed, continuing to undermine long-term stability.
Equally crucial, regular diagnostics help organizations anticipate changes and adjustments to better face challenges and opportunities. Just as athletes regularly assess their physical condition to refine their training and avoid injuries, organizations must regularly evaluate their health and fitness, identifying which elements require recalibration as they evolve.
For instance, the priorities of a startup look very different from those of a mature, growing company. In its early stages, a startup may focus primarily on direction and leadership, ensuring that vision and alignment exist, while elements like structure and processes remain flexible. However, as the company scales, execution becomes increasingly complex, requiring stronger coordination, control mechanisms, and well-defined processes to sustain growth. The calibration of these nine elements is not a one-time effort — it must shift in response to the company’s stage, external challenges, and evolving goals.
Organizations that proactively diagnose and adjust their health and fitness remain agile and resilient. Those that don’t often find themselves scrambling to address symptoms that could have been prevented with regular check-ins and timely recalibration.
A Commitment to Continuous Health
Much like personal fitness, organizational health isn’t something you achieve once and forget about — it requires ongoing attention and adjustment. The most successful companies aren’t just those that fix problems as they arise but those that proactively strengthen their foundations, ensuring they remain fit for the challenges ahead.
By embedding regular diagnostics into their management practices, leaders create an environment where continuous improvement is the norm, not the exception. The key is to anticipate and adapt, regularly assessing and strengthening the nine elements of organizational health to provide leaders with the insight needed to make coherent, effective decisions.
So, I leave you with this challenge: Don’t wait for problems to force you into action. Take the time now to evaluate your organization’s health and fitness — you might be surprised by what you discover and the impact it can have on your long-term success.
- Ximena Jimenez is a strategy consultant and founder of LITup, helping leaders across the Americas navigate complexity and lead transformation.
