MUNHUMUTAPA SCHOOL OF COMMERCE GRADUATE BUSINESS SCHOOL MASTER OF BUSINESS ADMINISTRATION STUDENT GODWILL MUGADZA REG NUMBER M215725 COHORT HARARE WEEKEND SCHOOL MODULE CODE MBA 715 TITLE CHANGE MANAGEMENT TUTOR DR E. MURESHERWA SEMESTER 2.1 YEAR 2022 ASSIGNMENT 1 EXAMINE HOW AN UNDERSTANDING OF THE 7S MODEL CAN HELP IN MANAGEMENT OF CHANGE IN ORGANIZATIONS (25) LECTURER’S COMMENTS _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ INTRODUCTION McKinsey 7S Model is another pivotal and extensively applied change management model that organizations utilize to deal with changes. The origins of this model are linked to the 20th Century. It was proposed by Robert Waterman and Tom Peters in 1970. The framework examines the internal elements within an organization to determine how they can be aligned with the objective of effective change management. The goal of the model is to depict how effectiveness can be achieved in an organization through the interactions of seven key elements – Structure, Strategy, Skill, System, Shared Values, Style, and Staff. The focus of the McKinsey 7s Model lies in the interconnectedness of the elements that are categorized by “Soft Ss” and “Hard Ss” – implying that a domino effect exists when changing one element in order to maintain an effective balance. Placing “Shared Values” as the “center” reflects the crucial nature of the impact of changes in founder values on all other elements. This essay therefore seeks to examine how an understanding of the 7s model can help in management of change in organizations. The essay opens up by definition of the key terms in order to create shared assumptions on the salient issues involved. The terms that are defined at this early stage into the essay are: Structure, strategy, skill, system, shared values, style and staff. Any other term that is found incidental to specific sections of the essay are defined as the paper continues to unfold. The definition of terms is then followed by the discussion in question, before the paper winds down with a summary of the major issues raised. DEFINITION OF KEY TERMS STRUCTURE: Structure is the way in which a company is organized – chain of command and accountability relationships that form its organizational chart, (CFI, 2022). For instance, CAMPFIRE Program Wildlife Management in Zimbabwe has a flatter organizational hierarchy that is supported by learning and progressive organizations. With lesser managerial levels in between and more access to the senior management and leadership, the employees feel more secure and confident and also have higher access to information. Moreover, the flatter hierarchy also allows quicker decision-making processes for CAMPFIRE Program Wildlife Management in Zimbabwe and increases organizational commitment in the employees, (Harvey, 2020). STRATEGY Strategy refers to a well-curated business plan that allows the company to formulate a plan of action to achieve a sustainable competitive advantage, reinforced by the company’s mission and values, (CFI, 2022). For instance, the strategic direction and the overall business strategy for Zimbabwe Grappling with Hyperinflation are clearly defined and communicated to all the employees and stakeholders. This helps the organization manage performance, guide actions, and devise different tactics that are aligned with the business strategy. Moreover, the business strategy’s definition and communication also make operations for Zimbabwe Grappling with Hyperinflation more transparent and aligns the responsibilities and actions of the company, (Mckinsey 7s Framework Of Zimbabwe Grappling With Hyperinflation, 2020). SKILLS It relates to what the company does best, the distinctive capabilities and competencies that reside in the organization, (hr.com, n.d).Skills form the capabilities and competencies of a company that enables its employees to achieve its objectives, (CFI, 2022). For example, CAMPFIRE Program Wildlife Management in Zimbabwe has a commendable workforce, with high skills and capacities. All employees are recruited based on their merit and qualifications. CAMPFIRE Program Wildlife Management in Zimbabwe prides itself on hiring the best professionals and grooming them further to facilitate growth and development, (Harvey, 2020). SYSTEMS Systems entail the business and technical infrastructure of the company that establishes workflows and the chain of decision-making, (CFI, 2022). For example, CAMPFIRE Program Wildlife Management in Zimbabwe has defined and well-demarcated systems in place to ensure that the business operations are managed effectively and that there are no conflicts or disputes. The systems at CAMPFIRE Program Wildlife Management in Zimbabwe are largely departmental in nature, and include, for example: human resource management, finance, marketing, operations, sales, supply chain management and public relation management. SHARED VALUES The mission, objectives, and values form the foundation of every organization and play an important role in aligning all key elements to maintain an effective organizational design. For example, the core values at Zimbabwe Grappling with Hyperinflation are defined and communicated to foster a creative and supportive organizational structure that will allow employees to perform optimally, and enhance their motivation and organizational commitment. The core values at Zimbabwe Grappling with Hyperinflation include, but are not limited to: creativity, honesty, transparency and accountability, (essay48.com, 2020) STYLE It pertains to the leadership approach of top management and the organization’s overall operating approach, (hr.com, n.d). Also it relates to the way in which the organization’s employees present themselves to the outside world, to suppliers and customers, (hr.com, n.d). For example, Zimbabwe Grappling with Hyperinflation has defined and well-demarcated systems in place to ensure that the business operations are managed effectively and that there are no conflicts or disputes. The systems at Zimbabwe Grappling with Hyperinflation are largely departmental in nature, and include, for example: human resource management, finance, marketing, operations, sales and supply chain management, (Harvey, 2020). STAFF It relates to the organization’s human resources , (hr.com, n.d). It refers to how people are developed, trained, socialized, integrated, motivated, and how their carriers are managed, (hr.com, n.d). CAMPFIRE Program Wildlife Management in Zimbabwe has a sufficient number of employees employed across its global operations. Employees for different job roles and positions are hired internally as well as externally – depending on the urgency and the skill levels required, (essay48.com, 2020). Based on this, it is seen that CAMPFIRE Program Wildlife Management in Zimbabwe has employees who are skilled as per the requirements of their job roles and positions. All employees are given in house training to familiarize themselves with the company and its values. External training along with in-house training is provided for skill level enhancement, (essay48.com, 2020) All job roles and positions are designed to facilitate the achievement of business goals, and as such, employee skill level at CAMPFIRE Program Wildlife Management in Zimbabwe is sufficient to achieve the business goals of the company. CONTENT/ THEORY 1.1.0 WHEN TO USE THE 7S MODEL You can use the 7-S model in a wide variety of situations where it's useful to examine how the various parts of your organization work together, (Mindtools, n.d).For example, it can help you to improve the performance of your organization, or to determine the best way to implement a proposed strategy. The framework can be used to examine the likely effects of future changes in the organization, or to align departments and processes during a merger or acquisition. You can also apply the McKinsey 7-S model to elements of a team or a project, (Mindtools, n.d). 1.1.1 THE 7S FRAMEWORK CATEGORIES : The model categorizes the seven elements as either "hard" or "soft", (Mindtools, n.d). The three hard elements include: Strategy Structures (such as organization charts and reporting lines) Systems (such a formal processes and IT systems) These elements are relatively easy to identify, and management can influence them directly, (Mindtools, n.d). The four "soft" elements, on the other hand, can be harder to describe, and are less tangible, and more influenced by your company culture, (Mindtools, n.d). But they're just as important as the hard elements if the organization is going to be successful, (Mindtools, n.d). The four elements include, shared values, skills, style and staff. 1.1.2 APPLICATION OF THE 7S MODEL STEP 1: IDENTIFY THE AREAS THAT ARE NOT EFFECTIVELY ALIGNED Is there consistency in the values, strategy, structure, and systems? Look for gaps and inconsistencies in the relationship of elements, (CFI, 2022). What needs to change? STEP 2: DETERMINE THE OPTIMAL ORGANIZATION DESIGN It is important to consolidate the opinions of top management and create a generic optimal organizational design that will allow the company to set realistic goals and achievable objectives. The step requires a tremendous amount of research and analysis since there are no “Organization Industry Templates” to follow, (CFI, 2022). STEP 3: DECIDE WHERE AND WHAT CHANGES SHOULD BE MADE Once the outliers are identified, the plan of action can be created, which will involve making concrete changes to the chain of hierarchy, the flow of communication, and reporting relationships, (CFI, 2022). It will allow the company to achieve an efficient organizational design, (CFI, 2022). STEP 4: MAKE THE NECESSARY CHANGES Implementation of the decision strategy is a make-or-break situation for the company in realistically achieving what they set out to do, (CFI, 2022). Several hurdles in the process of implementation arise, which are best dealt with a well-thought-out implementation plan, (CFI, 2022). 1.1.3 ADVANTAGES OF THE 7S MODEL Considers 7 elements of strategic fit, which is more effective than the traditional model that only focuses on strategy and structure, (Athuraliya, 2022). It helps align the processes, systems, people, and values of an organization, (Athuraliya, 2022). Since it analyzes each element and the relationship between them in detail, it ensures that you miss no gaps caused by changed strategies, (Athuraliya, 2022) Helps organizations identify how they should align the different key parts of the organization to achieve their goals 1.1.4 ADVANTAGES OF THE 7S MODEL It requires the organization to do a lot of research and benchmarking, which makes it time-consuming, (Athuraliya, 2022) It only focuses on internal elements, while paying no attention to the external elements that may affect organizational performance, (Athuraliya, 2022) It requires the help of senior management which may not be readily available depending on how busy they are, (Athuraliya, 2022) CONCLUSION The McKinsey 7S model is a proven framework for helping organizations understand how to get from their current situation to the situation they prefer to be in. Conclusion The McKinsey 7 S model may look simple but changing an organization properly is not at all simple. Leaders most properly alien all 7S elements to respond to changes in the business environment to successfully manage change (Peters & Waterman, 1982. For example, in Peters and Waterman’s the framework that maps a collection of interconnected factors that influence a firm’s ability to change, the lack of hierarchy alignment among the factors proposes that there will be difficulties in significant progress in one part of the firm if the firm does not work on the others factors (Peters & Waterman, 1982). Therefore, it is vital for leaders to gather lots of information on each of the 7S and relate them to the business environment and align them with each other to make any appropriate strategic plan and implementation References Athuraliya, A. (2022, October 18). creately.com. Retrieved from https://creately.com/blog/diagrams/mckinsey-7s-model-guide/ CFI. (2022, October 273). Retrieved from Corporate finance institute: https://corporatefinanceinstitute.com/resources/management/mckinsey-7s-model/ essay48.com. (2020, February 11). essay48.com. Retrieved from https://www.essay48.com/case/37081Zimbabwe-Grappling-with-Hyperinflation-Mckinsey-7s Harvey, M. (2020, February 11). Retrieved from https://www.essay48.com/case/3926-CAMPFIREProgram-Wildlife-Management-in-Zimbabwe-Mckinsey-7s hr.com. (n.d). Retrieved from https://www.hr.com/en/resources/wikis/the-7s-modelmckinsey_f3dugxvu.html Miller , k. (2022, March 31). Retrieved from https://crowjack.com/blog/strategy/change-managementmodels/mckinsey-7s-model Mindtools. (n.d). Retrieved from wwwmindtools.com: https://www.mindtools.com/pages/article/newSTR_91.htm