Some
approaches look at internal factors, others look at external ones, some combine these
perspectives, and others look for congruence between various aspects of the organization
being studied. Ultimately, the issue comes down to which factors to study.
While some models of organizational effectiveness go in and out of fashion, one that has
persisted is the McKinsey 7S framework. Developed in the early 1980s by Tom Peters
and Robert Waterman, two consultants working at the McKinsey & Company consulting
firm, the basic premise of the model is that there are seven internal aspects of an
organization that need to be aligned if it is to be successful.
The 7S model can be used in a wide variety of situations where an alignment perspective
is useful, for example to help you:
The McKinsey 7S model can be applied to elements of a team or a project as well. The
alignment issues apply, regardless of how you decide to define the scope of the areas you
study.
The Seven Elements
The McKinsey 7S model involves seven interdependent factors which are categorized as
either "hard" or "soft" elements:
Hard Elements
Soft Elements
Strategy
Shared Values
Structure
Skills
Systems
Style
Staff
"Hard" elements are easier to define or identify and management can directly influence
them: These are strategy statements; organization charts and reporting lines; and formal
processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible
and more influenced by culture. However, these soft elements are as important as the
hard elements if the organization is going to be successful.
The way the model is presented in Figure 1 below depicts the interdependency of the
elements and indicates how a change in one affects all the others.
Strategy: the plan devised to maintain and build competitive advantage over the
competition.
Structure: the way the organization is structured and who reports to whom.
Systems: the daily activities and procedures that staff members engage in to get
the job done.
Shared Values: called "super ordinate goals" when the model was first
developed, these are the core values of the company that are evidenced in the
corporate culture and the general work ethic.
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the employees working for the
company.
Placing Shared Values in the middle of the model emphasizes that these values are central
to the development of all the other critical elements. The company's structure, strategy,
systems, style, staff and skills all stem from why the organization was originally created,
and what it stands for. The original vision of the company was formed from the values of
the creators. As the values change, so do all the other elements.
The McKinsey 7Ss model is one that can be applied to almost any organizational or team
effectiveness issue. If something within your organization or team isn't working, chances
are there is inconsistency between some of the elements identified by this classic model.
Once these inconsistencies are revealed, you can work to align the internal elements to
make sure they are all contributing to the shared goals and values.
The process of analyzing where you are right now in terms of these elements is
worthwhile in and of itself. But by taking this analysis to the next level and determining
the ultimate state for each of the factors, you can really move your organization or team
forward.
Competition
Loss of stakeholder confidence
Technological advances
Change programs are common but it is claimed that up to 70% of them fail. While there
are multiple reasons here are 6 reasons why change programs fail.
1. Communication: It might be that the organisation is having problems delivering
the tough messages. Alternatively it might be inconsistency in the message
delivered by members of the leadership team. The problem might not be with
what is said but listening effectively to differing views and ideas.
2. Top Down: Senior people might lead the organisation, set the direction and put
the plans in place. Yet in reality they are not the people who can make it happen.
People at lowest level of the organisation determine whether a change program
delivers. They need to be involved.
3. Lack of space and support: Changes impact on individuals in a very personal
way. If organisations do not provide the space and support to individuals who are
impacted by the change, the chances of success are greatly reduced.
4. Unclear objectives: The objective or outcome of any change program needs to be
clear. Ambiguity makes it impossible to get across the reasons and benefits of the
change.
5. Lack of performance measures: Change is usually about improvement. Unless
there is a clear set of measures that can let people know whether they are on or off
track, that are monitored and people are held accountable for sustainable change
is unlikely.
Shorter meetings.
More productive meetings.
Better decisions.
Increased feelings of participation or potency.
Greater satisfaction with the team or meetings.
Concentrate on the way the team works, rather than what it is working on.
Stay silent even when issues s/he knows or cares about are discussed.
Ask questions instead of offering expert advice.
Help the team solve its own problems.
Not make value judgments or deal with content issues.
Understand group dynamics, conflict resolution, and manager/leader
development.
Process consulting also requires a client who is aware of their problems, and who is
willing to listen and change some habits if needed. In some ways, process consulting is as
difficult for the client as it is for the consultant, because they must put aside any natural
defensiveness and temporarily yield their authority in some ways. However, the rewards
far outweigh the efforts and risks.
Overall, process consulting is an invaluable but underused service which requires an
experienced consultant.
A change agent is an event, organisation, material thing or, more usually, a person that
acts as a catalyst for change. In business terms, a change agent is a person chosen to bring
about organisational change. Corporations often hire senior managers or even chief
executives because of their ability to effect change.
Key Competencies of Change Agents
Objectives
1. Sensitivity to changes in key personnel, top management perceptions and market
conditions, and to the way in which these impact the goals of the project.
2. Setting of clearly defined, realistic goals.
3. Flexibility in responding to changes without the control of the project manager,
perhaps requiring major shifts in project goals and management style.
Roles
4. Team-building abilities, to bring together key stakeholders and establish effective
working groups, and to define and delegate respective responsibilities clearly.
5. Networking skills in establishing and maintaining appropriate contacts within and
outside the organization.
6. Tolerance of ambiguity, to be able to function comfortably, patiently and effectively in
an uncertain environment.
Communication
7. Communication skills to transmit effectively to colleagues and subordinates the need
for changes in the project goals and in individual tasks and responsibilities.
8. Interpersonal skills, across the range, including selection, listening, collecting
appropriate information, identifying the concerns of others, and managing meetings.
9. Personal enthusiasm in expressing plans and ideas.
10. Stimulating motivation and commitment in others involved.
Negotiation
11. Selling plans and ideas to others by creating a desirable and challenging vision of the
future.
12. Negotiating with key players for resources, for changes in procedures, and to resolve
conflict.
Managing up
13. Political awareness in identifying potential coalitions, and in balancing conflicting
goals and perceptions.
14. Influencing skills, to gain commitment to project plans and ideas form potential
skeptics and resisters.
15. Helicopter perspectives, to stand back from the immediate project and take a broader
view of priorities.