Effectiveness of 7S Framework Model - Essay Example

? Effectiveness of 7S framework model ABC XYZ Contents Introduction 3 Effectiveness of the 7S framework 3 Conclusion 6 References 7 Introduction The 7S framework was introduced by McKinsey and Company in the 1980s and has been extensively applied by practitioners to review several corporate organizations. The 7S framework was first used to analyze around 70 organizations by the authors Robert Waterman, Thomas Peters and Julian Phillips. According to the 7S framework, effective change in the organization is brought out between the interrelationships between systems, strategy, structure, superordinate objectives, staff, styles and skills. The core notion behind the model is that effectiveness in an organization is a result of several interrelated factors (Waterman, Peters & Phillips, 1980). The framework aids to take all the knowledge of the above mentioned organizational variables which are informal, soft or does not require the purview of the senior management team. The model suggests that other than structure and strategy, style, superordinate goals (shared values), systems and skills are also important for aligning the staff to perform certain aspired organizational activities. The model thereby urges users to focus on the interactions between the 7S and propose to bring about a balance in the organization (Bhatti, 2011). Effectiveness of the 7S framework Effectiveness is perceived in diverse manners. This is possible as every individual in a team may have a distinct idea of the meaning of being effective. The task of the management in a firm is to recognize an issue which is already present in the firm. However, the issue is related to effectively diagnosing the problem. The 7S framework is effective in this case as it helps in acting as a guide to taking and making decisions as it aims to provide several suggestions and consultations with respect to issues with respect to structure and organization. This is especially necessary during the change management situations when firms need to restructure the three hard variables, systems, strategies and process. The other soft variables like style, staff, structure and superordinate goals are often neglected by the organization during the change management process and this result in failure. The model, on the other hand, serves as a useful connection to identify certain weaknesses and strengths within the 7S framework. The 7S framework highlights the fact that a change in any one of the 7S affects the other variables in the organization. It helps business leaders to understand that the manner in which interrelated elements come together during the stage of strategy implementation (Choi et al. 2011). The 7S framework has not only been successful in helping to reorganize structures for enhanced organizational performance but also has proved to be effective in destination management. This is because the McKinsey 7S model helps in effectively implementing strategies – be it in the perspective of an organization or to enhance the image of a destination. This is because it helps in suggesting and arriving at a balance between seven interdependent factors (Oakley & Sugarman, 2013). The effectiveness of implementing the 7S model in destination management is to strategize and implement enhanced plans for marketing and changing the image of a particular place or destination. The same model was used in changing the image of Czech Republic by ably defining and explaining certain soft and hard variables like shared values or superordinated goals, strategy, system and structure, style and staffs and skills (Palatkova, 2011). In today’s changing world, many business and management models have been rendered obsolete; but there are a few which are still practiced by most business organizations. The 7S framework is one of them. This is mainly because the model focuses on the significant function played by coordination between the hard and soft variables and thereby bringing about a balance during the stages of strategy formulation and implementation. This results in enhanced organizational performance and effectiveness and contributes to successful change management projects (Byran, 2008). In yet another academic study conducted on Enterprise Resource Planning (ERP), it has been observed that implementing the 7S framework has proved to be effective. The Enterprise Resource Planning is a lengthy, complicated and an expensive procedure and often results in severe issues and failures. Hence, it benefits by performing a readiness evaluation during the nascent stage of the ERP implementation process to recognize the weak areas which may lead to project failure. The 7S model was implemented in order to find out certain strengths and weaknesses and thereby attain to bring about a balance between the hard and soft variables to accordingly align the structure and the strategy. Its application to two Iranian banks has proved to derive successful outcomes after project implementation (Hanafizadeh, 2011). The 7S framework was applied to an organization, BCL. This firm mainly emphasized on production and manufacturing and did not pay much attention to sales and marketing. Moreover the corporate style existing in this firm displayed as collectivist and shows signs of aversion towards change. Moreover, the staff in this firm lacked the skills required for effective sales and marketing. Also the firm believed in traditional shared values and the 7S framework helped in regaining a balance by changing the aforementioned soft variables and accordingly aligning them with structure, systems and strategy (Michalski, 2012). The flexibility of the 7S model is that it supports the fact of the manner in which organizations align with the outer environment. Given the uncertain market conditions and risk analysis, it is extremely necessary for organizations to devise and implement strategies (Hsu & Peng, 2012). The model simply iterates the fact that while aligning structure with strategy it is extremely critical to ensure that the other soft factors are also balanced given the changing work and complicated operation structure in organizations. This framework helps leaders to easily recognize areas in which further improvement is required and the places where the organization is strong and can play with its strengths in enhancing performance and competing in a changing world (Jing-xin & Wei, 2010). Conclusion The 7S framework helps in enhancing and focusing on development by enhancing service and products in a changing world. In a way it helps in bringing together all the various organizational forces to get excellent output. The model has attained a lot of success due to its consideration of aligning an organization to change along with modifications in the outer environment. References Bhatti, O.K. (2011). Strategy implementation: an alternative choice of 8S’S. Annals of Management Research, 1(2), 52 – 59. Byran, L. (2008). Enduring ideas: the 7-S framework. McKinsey Quarterly. Retrieved April 21, 2013 from https://www.mckinseyquarterly.com/Enduring_ideas_The_7-S_Framework_2123 Choi, Y.J., Lim, D.H., Roh, H.S. & Kim, E.S. (2011). Innovation in material science and emerging technology. Applied Mechanics and Materials, 145, 446 – 450. Hanafizadeh, R. (2011). A McKinsey’s 7S model-based framework for ERP readiness assessment. International Journal of Enterprise Information Systems, 7(4), 1 – 41. Hsu, C.F. & Peng, C.H. (2012). A case study of using 7S framework to improve business processes for call centre reforming. International Journal of Enterprise Network Management, 5(1), 17 – 32. Jing-xin, C. & Wei, L. (2010). Research on operational risk management framework for commercial banks in Internet world – based on McKinsey 7S model. International Conference on Internet Technology and Applications, 1 – 6. Michalski, A. (2012). Organizational change and transition: an investigation into Richard Murphy’s change management at Biscuilt & Co Ltd. Germany: GRIN Verlag. Oakley, C. & Sugarman, P. (2013). Improve your management skills, improve your clinical service. Advances in Psychiatric Treatment, 19, 108 – 114. Palatkova, M. (2011). The 7-S-McKinsey Model: an implementation tool of a destination marketing strategy in the Czech Republic, Global Management Journal, 3(1), 44 – 54. Waterman, R.H., Peters, J.R. & Phillips, J.R. (1980). Structure is not organization. Business Horizon, 23(3), 14 – 26. http://ieeexplore.ieee.org/xpl/login.jsp?tp=&arnumber=5566111&url=http%3A%2F%2Fieeexplore.ieee.org%2Fxpls%2Fabs_all.jsp%3Farnumber%3D5566111 Read More