McKinsey’s 7s model
McKinsey’s 7s model cannot really be considered as a pure strategy model, but rather as a way of thinking about development or remodelling of organizations. Its name comes fromthe seven factors that McKinsey found essential in the context of organization development: strategy, skills, shared values, structure, systems, staff and style. Normally, when a company sets out tochange its organization, the seven S’s are dealt with in a given sequence. In the ﬁrst phase the strategy is usually determined. The next step is to deﬁne what the organization must be especially goodat in order to be able to implement its strategy, in other words, what skills it must develop or otherwise acquire. The ﬁnal step is to determine what changes are needed in the other ﬁve factors tomake the change a successful one. Strategy tells a company how it must adapt itself to its environment and use its organizational potential, whereas the analysis of skills answers the question of how thestrategy ought to be implemented. It is seldom difﬁcult to deﬁne ﬁve, or maybe even tens skills of fundamental importance. But this is not enough, because the need is to develop winning skills, andthis often makes such heavy demands on the organization that it is only possible to develop between one and three skills at a time. These skills represent the link between the strategy and the new era,while at the same time they deﬁne the changes that need to be made in the other ﬁve S’s: structure, systems, staff, style and shared values. A company’s structure is perhaps the best known of theconcepts relating to organizational change. It refers to the way business areas, divisions and units are grouped in relation to each other. This, too, is perhaps the most visible factor in theorganization, and that is why it is often tempting to begin by changing the structure. There are many examples of corporate managements who thought they could reorganize their companies through structural...
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