HR Is the Engine That Drives Organizational Health
By Patty Freeman, CFO at Denison Consulting
Why the Most Effective Business Strategies Start with How People Work
In today’s high-pressure business environment, most executives know what they’re trying to achieve — growth, transformation, innovation. The difference between success and struggle rarely comes down to strategy alone. It comes down to how work actually gets done in a company.
That’s the domain of Organizational Health — and no one is better positioned to promote the importance of this concept than HR.
The Shift from HR as Support to HR as Strategy Driver
In high-performing organizations, HR leaders are not asking for a seat at the table. They’re already helping to shape the company’s strategic agenda. Not through slogans or sentiment, but through insight — connecting how people lead, align resources, and focusing teams on outcomes the business needs to deliver.
Organizational Health isn’t a soft topic. It’s the foundation of execution. And HR is closest to the signals that show where the organization is aligned — and where it’s silently stuck.
What Organizational Health Really Means
At Denison, we define Organizational Health as the system that connects culture, leadership, strategy, and execution. It’s made up of four core drivers:
- Mission – Do we know where we are going and are people aligned?
- Adaptability – Are we listening to the marketplace and adapt and respond to it?
- Involvement – Do people have a sense of ownership, not just accountability?
- Consistency – Are values and systems reinforcing the right behaviors?
Each dimension is measurable, and each one is directly tied to performance. Companies with strong Organizational Health scores grow faster, execute better, retain talent longer, and adapt to change more effectively than their peers.
HR’s Role: From Measurement to Momentum
- Convert People Insights into Business Language
Executives don’t act on engagement scores alone. They move when insights show how organizational habits are accelerating — or detracting from — performance. HR can use tools like the Denison Model to connect leadership behavior, strategic clarity, and team dynamics directly to operational and financial outcomes. - Surface the Signals that Shape Execution
Most organizations don’t lack plans — they lack visibility into the cultural friction that slows execution. Are decisions getting bottlenecked? Are teams aligned? Is leadership modeling what they expect from others? HR leaders see these signals before the rest of the organization does. - Drive Change from the Inside Out
Organizational Health isn’t a workshop or a quarterly program — it’s the lived system of how people choose to work together. HR has the proximity and perspective to make sure new initiatives reinforce the positive aspects of how the organization communicates, rewards, and leads.
The Results Speak for Themselves
Denison’s research shows that companies with strong Organizational Health experience have:
- 2x faster revenue growth
- 20% higher profitability
- Higher retention, innovation, and customer satisfaction
- Greater resilience during disruption or transformation
These outcomes don’t come from surface-level responses to engagement scores or employee satisfaction surveys. They come from leaders who understand how the health of the organization shapes every outcome — and HR teams who are willing to lead the work that drives it.
Organizational Health Is Already in Motion. HR Makes It Visible.
If you’re in HR, you already influence how your organization aligns, adapts, and performs. The opportunity now is to measure it, speak to it, and lead with it — so that your company culture becomes a visible, strategic asset.
Because when Organizational Health becomes the system that powers performance, HR isn’t just supporting the business.
HR is at the heart of the business.