Tuesday 12 March 2019

McKinsey-7S Framework in change management

The McKinsey 7S framework is a popular model used in organisations to study and analysis tool to assess and monitor changes in the internal situation of an organisation or investigate whether organisation is achieving its intended objectives and goals.

7S framework is developed by Mr. Tom Peters and Robert Waterman, consultants for the Mckinsey & Company. the model is based on the theory that for any organisation to perform well, these 7 elements needs to be aligned and mutually reinforced.

7S framework can be used in organisation changes such as organisation restructuring, new process, organisation merger, new system, change of leadership etc.

  1. Identify necessary changes and resources alignment  
  2. Decide clear and measures objectives to improve performance 
  3. Improve organisation performance 
  4. Predict effects of future changes within organisation 
  5. Maintain alignment during changes

7S framework is divided in Two segments 


Hard Elements

1. Structure: Division of activities, integration and coordination mechanism. 

2. Strategy: Purpose or plan of actions of the business and the way of enhancement. 

3. Systems: formal procedures for measurement, reward and resolution of organisation day by day or year by year ex: budgeting, training, costing, performance evaluation procedures etc.

Soft Elements 

4. Shared values: standards, values, and other form of  ethical practices within organisation or overall culture of the organisation. 

5. Skills: core competencies and capabilities, skills of the organisation and its employees.

6. Staff: Organisation Human resources, demographic, education, characters.  

7. Style: Leadership and management, typical behavioural patterns of the leadership 

How to Use? 
Mckinsey 7S framework easy to understand but equally harder to apply in an organisation due to common misunderstanding of 7S elements and alignment. 7S elements must be given equal importance to achieve the best results.

Reference:
https://en.wikipedia.org/wiki/McKinsey_7S_Framework
https://www.toolshero.com/strategy/mckinsey-7s-framework/

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