Sunday, August 8, 2010

SSSS plus 3 More (Aerianne Mendoza)

McKinsey’s 7-S Framework

In developing a positive core, a shift of paradigm is not enough. Aside from asking the right questions, one also has to develop a framework for organizational wellness and success. The 7S model can be considered a good framework.

The McKinsey 7S model consists of seven interdependent factors which may be said as an organization’s soft or hard elements. Soft elements include shared values, skills, style, and staff. Hard elements include strategy, structure, and systems. Soft elements are the abstract, un tangible aspects of an organization. These elements are shaped by the organizational culture of a company or corporation. Hard elements on the other hand are the concrete, tangible, and flexible aspects of a culture. They are flexible in the sense that they can be manipulated or altered to suit organizational needs. The hard elements of an organization can be considered its artefacts. Examples are strategy statements, organization charts, formal processes, and IT systems. All of the aforementioned can be manipulated for organizational betterment.

The 7S are interdependent of each other, with shared values as the core of elements since everything in an organization is a product of shared values people try to live up to or actualize. Here I realized that indeed, before any organization can function, there should be something to bind it together. Without the tie, the values people live up to, people would not be an organization (organized entity) but a crowd (a nameless and faceless group).

Hard elements should complement the soft elements. Based on the 7 S framework diagram, elements should neatly intertwine. First as said earlier, shared values should encompass the remaining S’s. Next, strategy should complement skill and style. Strategy is the plan concocted to build competitive advantage in the corporate world. Skills are competencies of organizational members to do their works. Style pertains to the type of leadership there is in an organization. A strategy cannot be carried out without a leader whose style is acceptable to people. When a leader’s style is unacceptable to people, the leader is not followed. But even when there is a leader whose style in implementing corporate strategy is acceptable to people, no strategy can be actualized if those assigned to actualize it do not have the skill to do so. There’s the first combination.

Next, there should positive be a good mix of structure, skills, and style. If none, there would not be growth in the organization.

When the leader lacks an acceptable leadership style, he lacks structure too. If the leader is too authoritarian (this is a lack of acceptable style), there is a mechanistic organization set up (a lack of structure). There is a lack of structure here for communication does not go both ways; almost none reports to whom should be reported to. Boss assigns work, employee finishes work and boss checks. In turn there is no development of skills and thinking for employees are not propelled to generate ideas. When people do not generate ideas, they do not change or take a turn for the better. And if there is no change, there is no growth or positive leaps and bounds for the company.

Last, system should combine with skills and style. Systems are the activities that organizational members do to get any work done. If there is poor leadership style, there comes a poor system. When a terrible boss command people to do specific things, people do not follow so system (set of activities to get the work done) is not settled. Work is not accomplished and organizational members do not improve in terms of skill. Skill is improved only when people continuously do things requiring of the skill they have within.

In terms of soft complementing the hard elements, skill should complement strategy and system. Employees should utilize skills to do the tasks within the system to reinforce corporate strategy. All systems or set of tasks are streamlined to corporate strategy anyway. The earlier idea on skill, strategy, and system is mirrored by staff or the employees matching strategy and system. Finally, style should go hand in hand with strategy and system. A leader must develop a good style to implement a good system, and eventually a good corporate strategy. When the leader is good, people love the leader. When people love the leader, they render obedience to him or her. With obedience, people do activities to get things done for the leader. When things are done the way they are meant to be done, corporate strategy is strengthened.

To top things off, organizational success is not done with a snap of a finger. It is a product of streamlining organizational elements in such a way that they support each other.

References:

7 S framework lecture
McKinsey's 7S famework. Retrieved August 7, 2010 from:http://www.mindtools.com/pages/article/newSTR_91.htm

No comments:

Post a Comment