McKinsey 7S Model
McKinsey 7S model refers to seven factors that can be used to organize a company holistically. These factors can either be hard; tangible or soft; intangible. The seven elements are interdependent in that any change in one part affects the other components (Bradach, 1996). With the 7s model, an organization can find out its problems hence can develop a strategy to solve them.
- Shared values
This aspect is the interconnecting center of the model. It involves the core values within an organization; the way of life, beliefs and attitude.
- Strategy
Strategy involves how an organization plans on how to sustain its competitive advantage
- Structure
It’s how members of an organization organize themselves to perform their duties
- Systems
These are day-to-day activities that members in an organization engage in
- Style
The style involves the method of leadership and how the employees of the company portray the organization’s image.
- Staff
They are the trained personnel working within an organization
- Skills
These are specific specialization and competencies a company hold especially among its staff members
Understanding how these seven elements are aligned allows the organization progress towards the end goal of a firm. The 7S model assists in analyzing the current working conditions of a firm, aid in planning a future goal and sets out the difference between the two.
According to Hanafizadeh and Ravasan (2011), the company can implement the 7S model through change of organizational structure. This change involves developing new processes of carrying out operations and reshuffling the company’s leadership. An organization could also improve its systems through this aspect. Such change of system involves motivating employees by giving them a pay raise and bonus. It also involves encouraging creativity in working environment. Other aspects of consideration include the following:
- Skills: involve employees in the decision-making process, change ways of operations to encourage new skills. This aspect helps employee self-driven working conditions
- Strategy: Discover the organization’s strengths and focus on them, ensure minimal waste in production, learn competitors’ weaknesses and exploit them.
- Styles: This aspect involves the use of leadership that considers emotional intelligence and allows subordinates to participate in leadership. The organization’s leaders should be role models for the employees.
- Staff: The staff should be well skilled, self-driven, team players and fast learning employees are assets to the organization.
- Shared values: The organization should encourage recognition of every employee’s position and uphold respect. Such consideration would encourage perfection and ensure consideration of surrounding environment.
Reference
Bradach J. (1996). Organizational Alignment: The 7-S Model. Harvard Business School Note
Dwyer, L., & Mellor, R. (1991). Organizational environment, new product process activities, and project outcomes. Journal of Product Innovation Management, 8(1), 39-48.
Hanafizadeh, P., & Ravasan, A. Z. (2011). A McKinsey 7S model-based framework for ERP readiness assessment. International Journal of Enterprise Information Systems (IJEIS), 7(4), 23-63.
