How Organizational Health Drives Business Performance: Case Studies and Insights for Leaders

Introduction

Organizational health isn’t a buzzword—it’s a proven engine for sustainable performance. At its core, it’s about ensuring that every role in an organization is aligned with its strategic goals, executed effectively, and able to adapt to the changing landscape.

In any successful organization, role clarity is more than a managerial checkbox—it’s foundational to performance. Like a finely tuned vehicle, every part of a business must be designed for a specific function and expected to operate within its limits. When misalignment happens, even your best talent can underperform—or worse, cause organizational breakdowns.

In this article, we explore two real-world case studies where role misalignment had major consequences, then connect those insights to three critical dimensions of organizational health: alignment, execution, and renewal. We also weave in lessons from The Driving Engagement, a leadership book that uses the vehicle metaphor to clarify how expectations, accountability, and job fit drive success.

Case Study 1: Great Seller, Poor Manager

Sometimes the right person is simply in the wrong position. I once worked with a phenomenal salesperson—someone with exceptional ability to connect with clients, drive revenue, and close deals. Because of that success, he was promoted to sales manager.

It didn’t work.

He lacked the leadership, coaching, and strategic planning skills needed to manage others. Within a year, the department suffered, turnover spiked, and ultimately the entire team was laid off. His promotion was based on performance in one role, not potential for another.

Lesson: Just because someone excels in their current job doesn’t mean they’re ready—or right—for leadership. Organizational health requires matching strengths to responsibilities, not just rewarding performance with promotions.

Case Study 2: Strong Technician, Better Communicator

In the automotive field, temperament matters. I once worked with a technician who got visibly upset when repairs didn’t go as planned. He would force bolts, break parts, and cost the company hours in rework time.

But I noticed he had a knack for customer service—calm, clear, and trustworthy in conversations. We shifted him into a customer-facing role aligned with those strengths. The result? Greater productivity, higher job satisfaction, and fewer broken parts.

Lesson: Technical skill alone doesn’t determine job fit. Temperament, communication, and emotional control are also vital to performance—and aligning people to the right role can unlock overlooked strengths.

The Bigger Picture: Organizational Health as a Framework

These stories reflect more than isolated personnel issues—they highlight the importance of oThese stories reflect more than isolated personnel issues—they highlight the importance of organizational health. According to research by McKinsey & Company, healthy organizations (those with high alignment, strong execution, and the ability to adapt) outperform their peers across every metric—including financial returns and employee satisfaction.

“Organizational health unlocks the full potential of every employee and channels it directly into performance.”

Let’s break it down:

1. Alignment

Do employees understand and support the organization’s mission? Are their roles aligned with that purpose? In Case Study 1, the manager wasn’t aligned with what the role required—he lacked leadership capability. Misalignment like this leads to confusion, inefficiency, and burnout.

Just like a misaligned tire causes the car to pull off course, role misalignment can derail entire teams.

“Imagine if a car manufacturer just soldered together a bunch of random wires and chips and plugged them into the car. What would you say when the car wouldn’t drive? Would you purchase that car?”
The Driving Engagement by Eric Liechty

As highlighted in The Driving Engagement, vague job expectations are like installing an engine part without telling anyone what it’s supposed to do. When employees don’t know how success is defined, even the best talent will stall out. Setting clear expectations, honoring their skills, and aligning them to the organization’s mission is the first step in building a high-performing, healthy business.

2. Execution

Do we have what it takes to execute effectively? Execution refers to an organization’s ability to translate strategy into action by leveraging people, processes, and systems, with clear accountability and a focus on metrics that matter.

In Case Study 2, a skilled technician repeatedly broke bolts—not due to lack of talent, but because he was in the wrong role. Once reassigned to a position that aligned with his strengths in customer service, both his performance and morale improved. That’s what effective execution looks like: matching the right skills to the right task and setting clear expectations for success.

“As a leader, you are empowered to fix problems or tweak your team because everyone has a clear picture of their role. There is no misunderstanding. You can respond to an employee’s failure to meet expectations in a predictable and reasonable way.”
The Driving Engagement by Eric Liechty

Clear expectations are the backbone of execution. For some employees, expectations may be highly specific—like assembling a certain number of widgets per hour or making a defined number of sales calls. For others, they may be more strategic. But all roles need clarity and purpose.

“The fuel-level sending unit has two jobs: measure the amount of fuel in the tank and send that information to the fuel gauge. It would be ridiculous to ask it to also measure the oil level or turn on the headlights.”
The Driving Engagement by Eric Liechty

When leaders set clear, role-specific expectations, they build teams that function like a well-maintained vehicle—every part doing its job, no confusion, no overlap, and no unnecessary wear and tear. That’s how execution moves from aspiration to action.

3. Renewal

Are we able to continuously adapt and renew to the rapidly changing external landscape? Renewal refers to an organization’s ability to continuously innovate, adapt, and reinvent itself to stay relevant and thrive in an evolving environment.

In today’s world, disruption is constant—technology, customer expectations, market dynamics. Organizations that resist change stall out. But those that embed renewal into their culture stay agile and competitive.

Just like a vehicle needs routine tune-ups, fluid checks, and occasional upgrades to keep running smoothly, organizations must constantly assess and adapt their systems, processes, and people to keep performance at peak levels.

“The fuel-level sending unit has two jobs: measure the amount of fuel in the tank and send that information to the fuel gauge. It would be ridiculous to ask it to also measure the oil level or turn on the headlights.”
The Driving Engagement by Eric Liechty

Expecting employees to evolve with the organization while giving them mixed messages or outdated roles is like expecting a 10-year-old GPS to guide you through a brand-new city. Clarity and role-specific agility are essential.

When employees understand their purpose and leadership encourages learning, experimentation, and innovation, renewal becomes embedded in the culture—not just a reaction to crisis, but a natural part of growth.

Thought Leadership Spotlight

The Driving Engagement by Eric Liechty

A practical, insightful leadership guide that compares running a business to maintaining a high-performance vehicle. Discover how expectations, role clarity, and smart management decisions create teams that run efficiently, deliver results, avoid costly breakdowns.

Final Thought

Organizational health isn’t a “soft” metric—it’s the engine behind performance. These case studies show that misalignment, poor execution, and lack of renewal don’t just hurt morale—they cost time, money, and sometimes entire departments.

Great leaders ensure every part of the business is aligned, empowered, and continuously improving. Just like a car, your organization can only reach its destination if every component is doing its job—and doing it well.

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References

Goldstein, D., Grewal, M., Krivkovich, A., & Ramaseshan, N. (2025, April 21). Searching for sustained success? Focus on organizational health. McKinsey & Company. Retrieved from https://www.mckinsey.com/

Liechty, E. (2022). The Driving Engagement. Williams & Co. Publishing.

Image Credits

Parts of a Car Engine. (n.d.). Car engine diagram. Retrieved from https://www.partsofacarengine.com/

Enhance.Training. (2023). 5 impacts of manager skill on team performance. Retrieved from https://enhance.training/5-impacts-of-manager-skill-on-team-performance-tm0147/

Rise Up Global. (n.d.). Have better communication skills. Retrieved from https://riseupglobal.co/have-better-communication-skills/

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