4.2 THE STRATEGIST IN YOU: Ensuring Your Organization Work in Harmony

(SHORT NOTES FROM STRATEGY TOOLS:

Organization Design at http://www.mindtools.com)

www.money24seven.com

The McKinsey 7S Framework

McKinsey 7S framework was developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm.  The 7S model can be used to help:

·        improve the performance of a company

·        examine the likely effects of future changes within a company

·        align departments and processes during a merger or acquisition

·        determine how best to implement a proposed strategy

The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:

ELEMENTS
HARD	SOFT
Strategy	Shared Values
Structure	Skills
Systems	Style
	Staff
Examples
strategy statements	less tangible
organization charts and reporting lines	more influenced by culture
formal processes
IT systems

The model is based on the theory that these seven elements need to be aligned and mutually reinforcing for an organization to perform.  The model can be used to:

·        help identify what needs to be realigned:

·        to improve performance

·        to maintain alignment (and performance) during other types of change

·        understand how the organizational elements are interrelated

·        ensure that the wider impact of changes made in one area is taken into consideration

·        help analyze the current situation (Point A), a proposed future situation (Point B)

·        identify gaps and inconsistencies between them

·        ensure that organization works effectively and well

·        help you ask the right questions

The McKinsey 7Ss model can be applied to almost any organizational or team effectiveness issue.