Mc kinsey 7s model and change managment
- 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
- 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