Saturday, March 23, 2013

Examining Organizational Success or Dysfunction - McKinsey's 7-S Model


One of the best frameworks that I learned in business school for strategy was McKinsey's 7-S Model.


This model is used for an internal analysis of strategic characteristics of an organization to see what's going well and what isn't.  It can help with organizational alignment and assess the impact of change on the organization. 

the Model looks at what are considered hard, factual elements that are easy to identify in strategy statements, organizational charts, etc.:

Strategy- Actions a company plans in response to or in anticipation of changes in the external environment

Structure- Basis for specialization and coordination influenced mainly by strategy and organizational size and diversity

Systems- Formal and informal procedures that support the strategy and structure
Note:  Much of the dysfunction I see in organizations is a result of systemic barriers.


The soft elements of the model are hard to describe since they are evolving and changing constantly, they are:

Style and Culture - Organizational culture- the dominant values, beliefs and norms that develop over time and become relatively enduring features and Management style- what managers do rather than what they say, such as where they spend their time and what they reward.

Staff- The people and how they are managed - how management values are shaped and managers are developed, employee onboarding and development, assimilation

Skills- Distinctive Competencies, what the organization does best and ways of developing or shifting competencies

Shared Values and Subordinate Goals - Guiding principles, fundamental ideas around which a business is built

Evaluate your organization on each one of these elements to see where you stand.

For more detail on the model, please see:

http://www.tompeters.com/docs/7SHistory.pdf

http://www.tompeters.com/docs/Structure_Is_Not_Organization.pdf

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