McKinsey research shows that healthy organizations—those with strong performance cultures—consistently outdo their peers. To understand the state of organizational health in Southeast Asia, we analyzed data from more than 200,000 respondents to McKinsey’s Organizational Health Index (OHI) survey, covering nearly 40 companies over a five-year period (see sidebar, “Understanding organizational health”).
Overall, we found organizational health in the region to be robust. Many organizations have built thriving cultures, characterized by a strong sense of employee ownership; this is reflected in sound economic performance across the region. Yet there are significant differences between the healthiest organizations in Southeast Asia and the rest, with the healthiest organizations putting much greater focus on fostering innovation. Likewise, companies in the global top quartile of organizational health apply practices that many Southeast Asian companies could emphasize more—both to empower and engage employees, and to make smarter use of data and technology.
We assessed our OHI data through three lenses—common strengths of Southeast Asian organizations, differences between healthy and less healthy organizations in the region and applicable insights from companies with the greatest organizational health globally. From this analysis, five big themes emerged for Southeast Asian companies to achieve or sustain excellent organizational health.
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