Source page: McKinsey & Company

Commentary

Visual form

Two-line transformation performance chart.

Layout / body structure

The chart is a single time-series panel running from month 0 to month 18, with one blue line for companies that fully implemented organizational-health measures and one dark line for those that did not. Reader follows both lines across the same month scale and then checks the right-hand CAGR bubbles to compare the two trajectories in summary form.

What is being compared

The chart compares excess total returns to shareholders during a transformation between companies that fully implemented organizational-health measures and those that did not. It is a two-group performance comparison over time.

Measurement system

The vertical measure is an index of excess total returns to shareholders, while the horizontal axis is measured in months. The right side of the chart adds summary CAGR figures of 22 percent for the fully implemented group and 12 percent for the group that did not fully implement the health measures.

Visible structure inside the graphic

Both lines start at an index of 100 and move modestly in the early months, but the blue line accelerates more sharply after about month 9 and ends near the mid-130s. The dark line rises more gradually and finishes around the high teens above 100, while two colored summary circles on the right restate the final advantage in CAGR terms.

Main takeaway from the visual

Fully implementing organizational-health measures is associated with materially stronger shareholder returns during transformation. The gap between the blue and dark lines widens in the back half of the chart, making the performance separation look persistent rather than random month-to-month noise.

Key standout values or extremes

The most explicit summary numbers are the 22 percent CAGR for companies that fully implemented health measures versus 12 percent for those that did not. By the final month, the blue line is near 135 on the index while the dark line is only around 118, which is the largest visible spread on the page.

Controls / sequence, when applicable

This is a static chart image with no in-chart controls to operate.

Companion media, when applicable

There is no separate companion audio or video; the chart image is the full visual on this page.


Put a ring on it

Organization

October 28, 2021 – Our research shows that leaders who commit to organizational health measures have a 35 percent higher total returns to shareholders (TRS) over an 18-month period compared with those that don’t. Organizational health matters in successful transformations.

Committing to organizational health as part of your transformation can be a difference maker.

To read the article, see “Banking on the soft stuff,” September 23, 2021.


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