For companies of all sizes, achieving annual performance goals is typically one of the most pressing objectives. In some cases, making next quarter’s numbers is the foremost concern.

While many organizations keep the near term in constant focus, it’s important to balance that perspective with strategies for the long-term health and fitness of the business. Such strategies aren’t simply visionary growth prospects for the future; they demand some sort of present-day action to ensure their eventual realization.

Even so, most leaders fail to focus on the key factors that are necessary to long-term health. This is especially true if current performance is strong.

Just as the human body can be vibrant and healthy today but succumb to heart disease 5 or 10 years down the road, potentially unhealthy conditions can exist below the surface of an organization and threaten its life expectancy. The key is to recognize them early and take steps to prevent them from affecting future growth and sustainability.

A five-point organizational checkup

There are several long-term viability factors that an organization’s leadership must identify and address. These help establish the foundation for growth and build resilience to support future opportunities. When any one of these five elements is ailing, a company can become vulnerable, putting its survival at risk. 

Conducting a business health assessment can reveal your organization’s strengths and weaknesses in each of the long-term viability areas. To get a truly accurate evaluation, however, it’s important to solicit perspectives at all levels of the organization, not just from the top tier.

Here are five critical factors to examine during an organizational checkup.

1. Vision and values. Companies that live long and prosper have a clear purpose, along with principles to guide organizational decisions and actions. Their leaders spread this gospel patiently, persistently, and passionately. One outcome is never hearing the words “We don’t know what’s going on” from employees. Another is an organization in which the daily efforts of employees reflect company principles. Leaders must cultivate company values at every organizational level and constantly communicate the vision for the future.
   
   
2. Strategy. The difference between a dream and a plan is the act of translating grand ideas into executable strategies that can create long-term value. This includes providing the necessary competencies and resources to support strategic business models. The best approach typically includes a mix of short-term, medium-term, and long-term strategies.
   
   
3. Measurements. Once strategic development has been achieved, it’s crucial to establish meaningful metrics to gauge how quickly progress is being made. This effort proves to be one of the biggest differences between publicly traded and privately held companies. Large corporations typically measure all kinds of performance data to keep things moving in the right direction for sustainability, while smaller and entrepreneurially run companies often find it difficult to spare the energy needed to create and track metrics. Yet long-term growth plans require measurable indicators just as quarterly objectives do. With measurement tools and guideposts, plans are easier to implement and a company can quickly gauge its performance all along the way.
   
   
4. Alignment. Aligning people, processes, and technology with strategy is critical to success. All initiatives must likewise be connected to strategy in order to balance the here-and-now against future potential. With an aligned focus, an organization can have meaningful conversations about its direction and make better decisions about the future.
   
   
5. Culture. Issues with employee retention and morale can be a significant predictor of performance problems in the future. Creating a culture focused on sustainability demands that long-term incentives be used alongside short-term rewards to better manage talent for the long haul. It also requires a willingness to involve the organization’s future generations of leaders in developing and nurturing the company’s vision.

The long and short of it

Succeeding today and sustaining healthy performance over the long term isn’t a choice; it’s an ongoing balancing act that requires visionary leadership and incessantly proactive management. So, is your organization taking preventive measures to stay healthy for the long run?