7S model was created by McKinsey and company in 1980. Seven factors are included in this model. The model also includes practical guidance for the students. The 7S framework was dividing in thinking about organizational efficiency. In previous the manager focus was on organization because organization grew in size and complicated questions were also arised.
How do you know about analyzing how well your organization is positioned to attain its planned objective? To solve this answer some models came in and out of the fashion.But McKinsey 7S framework was persisted. Tom Peters and Robert Waterman two consultants worked on this model. The basic idea of the model is that there are seven internal aspects of an organization.
The seven elements are categorized as either “hard” or “soft” elements. “Hard” elements are easy to define and the other hand “Soft” elements are more difficult. If one wants to make organization successful then they should think that both elements are equally important. In hard elements Strategy, structure and Systems are included. In soft elements Shared Values, Skills, style, and Staff are included.
McKinsey’s model of 7S is given below:
Explanation of each element:
- Strategy: Strategy is created to maintain and make competitive benefit over the competition.
- Structure: Structure is the way the organization is constructed and who reports to whom.
- Systems: In systems the daily activities and events that staff members join in to get the job done.
- Shared values: Shared values are also called “super ordinate goals”. These values are the center values of the company that are evidenced in the corporate culture and the general work.
- Style: you have to adopt the style of leadership.
- Staff: In staff employees and their general capabilities are included.
- Skills: Skills are the actual skills of the employees who are working for the company.
How to use this model?
Theory is the base of this model. If organization wants to perform well then these seven elements are needed to be associated and equally reinforced. If you want to change restructuring, new processes, organizational merger, new systems, change of leadership, then you will have to understand how organizational elements are interrelated.
If you want to analyze the current situation and plan future situation, then you can use the 7S model. When you use the model you can identify gaps and inconsistencies between future and current situation. The whole books and methodologies are dedicated to analyzing organizational strategy, improving performance and managing change. This model is a good framework which helps you to ask right questions. If you want to use this model then you will require proper knowledge, skills and experience. You must have developed a mind tools checklist and a medium to keep track of how the seven elements are aligned with each other.
7S Checklist Questions: Here are some questions, that will help you to understand your situations in terms of the 7S framework.
Strategy:
- What is our strategy?
- How do we intend to achieve our objectives?
- How are changes in customer demands dealt with?
- How do we deal with competitive pressure?
- How is strategy adjusted for environmental issues?
Structure:
- What is the hierarchy?
- Is this as it should be, given what we’re doing?
- How do the team members organize and align themselves?
- How do the various departments coordinate activities?
- Is decision making and controlling centralized or decentralized?
- How is the company/team divided?
Systems:
- What internal rules and processes does the team use to keep on track?
- What are the main systems that run the organization? Consider financial and HR systems as well as communications and document storage.
- Where are the controls and how are they monitored and evaluated?
Shared Values:
- How strong are the values?
- What are the fundamental values that the company/team was built on?
- What are the core values?
- What is the corporate/team culture?
Style:
- Do employees/team members tend to be competitive or cooperative?
- How participative is the management/leadership style?
- How effective is that leadership?
- Are there real teams functioning within the organization or are they just nominal groups?
Staff:
- What positions need to be filled?
- Are there gaps in required competencies?
- What positions or specializations are represented within the team?
Skills:
- Are there any skills gaps?
- What is the company/team known for doing well?
- What are the strongest skills represented within the company/team?
- Do the current employees/team members have the ability to do the job?
- How are skills monitored and assessed?
7S matrix questions: Now examine where there are gaps and inconsistencies between elements. Remember you can use this to look at either your current or your desired organization. You can use to check off alignment between each of the elements as you go through the following steps:
- You can start with shared values: Are they consistent with your structure, strategy, and systems? If not, what needs to change?
- After that you have to look at the hard elements: How well does each one support the others? Identify where changes need to be made.
- Look at the soft element. Do they support the desired hard elements? Do they support one another? If not, what needs to change?
- As you adjust and align the elements, you’ll need to use an iterative (and often time consuming) process of making adjustments, and then re-analyzing how that impacts other elements and their alignment. The end result of better performance will be worth it.
