Assessing Organisational Health: A Practical Guide Using the Burke–Litwin Model

Starting an Organisational Health Audit: Where Do You Begin?

When the request lands on your desk to assess the health of your organisation, it can feel daunting. What exactly should you measure, and how do you make sense of the findings? A practical starting point is the Burke–Litwin model, a well-established framework for organisational diagnosis. This model doesn’t just look at surface-level issues; it examines two interconnected layers of organisational dynamics: transformational factors, which shape the organisation’s long-term direction, and transactional factors, which govern day-to-day operations.

The real power of this approach lies in understanding that these elements are not isolated. They influence each other continuously, and the degree to which they are aligned determines whether your organisation is thriving or struggling. A healthy organisation isn’t about achieving flawless harmony it’s about creating enough alignment between vision, culture, leadership, and operational systems so that the organisation can adapt and perform effectively in a changing environment.

Defining Organisational Health

So, what does “organisational health” actually mean? At its core, it’s the organisation’s ability to function as a cohesive system responding to external pressures, delivering on its mission, and sustaining performance over time. It’s about resilience and adaptability rather than perfection. A healthy organisation has clarity of purpose, a culture that supports its strategy, leadership that inspires and enables change, and processes that make execution possible. When these components work in concert, the organisation is not only efficient but also agile enough to navigate uncertainty and seize opportunities.

Step 1: Gathering Meaningful Data

Before you jump into analysis, the first priority is collecting the right information. A robust audit depends on data that is both comprehensive and credible. Here’s how to approach it:

• Choose Your Methods Wisely

  Go beyond a single technique. Combine interviews for qualitative insights, surveys for measurable trends, focus groups for collective perspectives, and document reviews for historical context. This mix ensures you capture both the big picture and the finer details.

• Capturing Data Effectively

  Structure is key. Use clear templates and consistent formats so responses can be compared easily. Anonymity is essential people speak more freely when they know their input won’t be traced back to them.

• Guard Against Bias

  Bias can creep in from many angles selection, interpretation, or even the way questions are framed. To counter this, involve voices from different levels and departments, and cross-check findings using multiple sources. Triangulation isn’t just a research term; it’s a safeguard for accuracy.

• Think Ahead to Action

  Data collection isn’t an end in itself. As you gather information, keep an eye on what it means for decision-making. Which gaps are most critical? Where will interventions deliver the biggest impact? This forward-thinking approach ensures your audit leads to tangible improvements.

Transformational Variables: The Strategic Drivers

These elements set the tone for the organisation’s future. They’re not about day-to-day operations they’re about shaping direction and purpose:

• External Environment

  Are we truly tuned in to what’s happening beyond our walls? Effective organisations scan the horizon constantly, anticipating shifts and positioning themselves ahead of the curve.

• Mission and Strategy

  Do our stated goals and policies genuinely align with our long-term vision? It’s not enough to have a strategy on paper are we measuring progress and adjusting when reality changes?

• Culture

  Culture can be a silent enabler or a hidden barrier. Does it reinforce our ambitions, or does it pull us back into old habits? Alignment here is critical.

• Leadership

  Leaders set the pace for change. Are they championing innovation or clinging to legacy practices? And just as important are we investing in the next generation of leaders to sustain momentum?

• Performance

  Success needs clarity. Do we know what good looks like at both individual and organisational levels? Without clear benchmarks, performance becomes guesswork.

Transactional Variables: The Operational Backbone

While transformational factors set the strategic direction, transactional variables are the gears that keep the organisation moving day to day. They may seem routine, but they have a profound impact on performance and employee experience. Here’s what to examine:

• Structure

  Does our organisational design encourage collaboration or create barriers? A rigid structure can lead to silos, while a flexible one promotes cross-functional teamwork and faster decision-making.

• Management Practices

  Are managers equipped to lead effectively? Beyond technical skills, do they foster trust, clarity, and engagement within their teams? Strong management practices are essential for maintaining a healthy work climate.

• Systems and Processes

  Do our systems reinforce our values and support a proactive, “can-do” culture? Processes should enable not hinder innovation and efficiency. If bureaucracy slows progress, it’s time to rethink.

• Climate

  How do employees perceive their working environment? Is it fair, supportive, and inclusive? Climate reflects the lived experience of staff and directly influences motivation and productivity.

• Motivation and Skills

  Are roles clearly defined, and do people have the training they need to succeed? Meeting individual needs and recognising contributions are key to sustaining high performance.

Why Climate Matters

Climate is more than a buzzword it’s about how people feel every day at work. It’s shaped by perceptions of management, recognition, involvement, and fairness. A positive climate doesn’t just make employees happier; it drives motivation and results. To gauge climate, ask:

• Are expectations and priorities clear to everyone?

• Do staff feel valued and included in decision-making?

• Is collaboration across teams smooth and effective?

When climate is strong, people bring their best selves to work. When it’s weak, even the best strategy can falter.

Feeding Back to the Chief Executive Officer

Delivering feedback to the CEO is a critical leadership responsibility. It should be clear, evidence-based, and solution-oriented, ensuring that the conversation drives action rather than defensiveness. Your approach should combine strategic insight with practical recommendations.

1. Key Strengths and Weaknesses

Start by painting a balanced picture:

• Strengths:

  • Highlight what the organization is doing well these are the levers for future success.

  • Examples: A strong external network, high employee engagement scores, or a culture of innovation.

  • Reinforce how these strengths align with strategic priorities.

• Weaknesses:

  • Identify gaps that could undermine performance or strategic delivery.

  • Be specific: Is the issue leadership capability, structural inefficiency, cultural misalignment, or unclear roles?

  • Use data and anecdotes to illustrate the impact of these weaknesses.

2. Priority Areas for Improvement

Not all issues are equal. Focus on the critical few that will deliver the greatest impact:

• Strategic Priorities:

  • Which gaps pose the biggest risk to achieving the organization’s vision?

  • Example: If culture and strategy are misaligned, this is a systemic issue that needs urgent attention.

• Operational Priorities:

  • Which quick fixes will improve day-to-day performance and build momentum?

  • Example: Clarifying decision-making authority or improving communication channels.

Explain why these priorities matter link them to measurable outcomes such as growth, resilience, customer satisfaction, or employee retention.

3. Practical Recommendations

Your recommendations should be actionable, realistic, and phased:

• Transformational Changes (Long-Term):

  • Redefine organizational culture to align with strategy.

  • Restructure teams for agility and accountability.

  • Embed external scanning into strategic planning processes.

  • These changes require leadership commitment, resources, and sustained effort.

• Transactional Changes (Short-Term):

  • Improve internal communication channels.

  • Clarify role expectations and reporting lines.

  • Introduce quick wins that demonstrate progress and build confidence.

Tip: Use a mix of qualitative insights (employee feedback, leadership interviews) and quantitative data (KPIs, benchmarking) to support your recommendations. Frame feedback as an opportunity for growth, not a critique.

Presentation Style

• Keep it visual and concise for impact use dashboards, heat maps, and priority matrices.

• Summarize findings in three tiers:

  1. What’s working well

  2. What needs attention

  3. What we recommend next

End with a clear call to action: “Here are the three things we need to do in the next 90 days.”

Conclusion

Effective leadership is not just about setting direction it’s about continuously assessing alignment between strategy, culture, structure, and execution. By asking the right questions and feeding back insights in a clear, structured way, leadership teams can identify what’s working, where gaps exist, and how to close them. The goal is to move beyond diagnosis to action: prioritizing changes that deliver impact, balancing transformational initiatives with quick wins, and ensuring every recommendation is grounded in evidence. When feedback is presented thoughtfully, it becomes a catalyst for growth, enabling the CEO and senior team to lead with confidence and clarity.