what is 7S model, how it is used as a strategic management tool to improve organizational performance and facilitate change management

1. McKINSEY 7S
MODEL AND
CHANGE
MANAGMENT
Suresh Sundar

2. ORIGIN
• Started with the investigation of the success of the
Japanese industries.
• “The Art of Japanese Management”- Richard Pascale
and Anthony Athos in 1981
• Developed by consultants(McKinsey) Robert Waterman
and Tom Peters while exploring “what made a company
excellent”

3. WHAT?
• A tool for assessing and analysing the changes in the
design of an organization by looking at 7 key internal
elements
• Most popular strategic planning tool
• The 7 elements are interconnected and a change in one
requires appropriate change in the other

4. WHY?
• Improve organizational performance
• Facilitate organizational change
• Help implement a new strategy
• Identify and evaluate effects of futuristic changes on the
organization
• Useful framework during M&A

5. THE FRAMEWORK

6. HARD ELEMENTS
Easier to define or identify and management can directly
influence them.
Strategy: Plan of action/ Roadmap/ Blueprint by way of
which organization plans to have a competitive advantage
or leadership.

7. Structure: the way business divisions and units are
organized and ‘Who reports to Whom’
Systems: Processes and procedures of the company which
includes daily business activities and how decisions are
made and tasks are done.

8. SOFT ELEMENTS
More difficult to identify and describe and influence. Less
tangible and very important.
Style: Leadership style and its influence on strategic
decisions, peoples’ motivation and performance
Staff: Human resources and their capabilities,
demographic, education and attitude

9. Skills: Actual collective skills of the workforce and the core
competencies
Shared Values: Also called as ”Superordinate goals”, they
are the core values of the company seen in corporate
culture and general work ethic.

10. USING THE MODEL
• Identify the ineffectively aligned areas
• Determine the optimal organizational design
• Decide where and what changes should be made
• Implementing the changes
• Review and make corrections if necessary

11. CHANGE
MANAGEMENT
Organizational change management is a framework for
managing the effect of
• new business processes
• Changes in organizational structure
• Cultural changes within the enterprise

12. 7S MODEL FOR OCM
• To be effective an organization must have a high degree
of fit or internal alignment among all the 7Ss
• It is a valuable tool to initiate change processes and give
them direction
• Used to determine the current state and compare it with
desired state
• Based on this it is possible to develop action plans to
achieve intended state

13. 7S MODEL IN PRACTICE
1. Understand the current state
Where are we now? What is current strategy?
How are we performing?
2. Understand the future state
Where do we want to go? What is the strategy?
3. Create 7S model review for current state
Understand current elements at present

14. 4. Create 7S model review on future state
What would 7 elements be like when aligned inline to suit
new direction
5. Compare future framework with current state
Create a plan to address the gaps in each of the elements

15. THANK YOU