McKinsey 7S Model

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McKinsey 7S Model-

The 7S model is an instrument that examines a company's organizational design. The model's
objective is to illustrate how an organization can attain effectiveness through the interplay of
the following seven elements- structure, strategy, skill, system, shared values, style, and
staff. When organizational changes are being made that could have an impact on one or more
shared values, the 7S model can be used. Consider a scenario in which a business is
considering merging. Since new employees will be joining the company, the organizational
structure will change. As new ideas arrive as a result of synergy, it will also have an impact
on the organization of the business as well as strategic decision-making (Institute, 2022).
We will be using the 7S model as a diagnostic tool to analyze the situation at hand-

McKinsey 7S Model
Elements Analysis
1. The merger will certainly lead to a structural
change for both the companies. However, limited
only to the DxP division for now.
2. The chain of command as can be clearly observed
Structure will to a large extent be controlled by the employees
coming in from PTC, since the division head as well
as various other senior managers are from PTC.
3. Due attention must be paid while restructuring.
Hard Elements 1. The advent of onboarding a new technology
clearly demonstrates the company's motive, i.e., to
Strategy stay relevant and constantly upgrade.
2. They must stay cognizant of their values and
mission while formulating future strategies.
1. The systems must be in place and communicated
clearly to all concerned employees as the new
System merger might create confusion regarding various
work flows.
2. The new leadership in the DxP division must put
all processes and systems in place from day 1.
1. A new technology has been onboarded by ITC
Infotech therefore appropriate training will be
needed for its employees.
Skills
2. Old ways of working (technology) might become
redundant.
3. Peer to peer learning can also be practiced

1. The leadership style and way of working might


Soft Elements
change for the employees for ITC Infotech since
Style
majority of the leadership is coming from PTC.
2. Leaders must be cautious of the Indian style of
working too.
1. The merger will impact various areas talent
management, such as rewards system, performance
Staff
evaluation and training. Due diligence has to be paid
on managing talent to avoid attrition.
2. An updated PMS might be useful to evaluate the
uptake of new technology
1. This will be one of the most important elements as
a cohesion has to be established between the values,
Shared Values mission, vision and culture of the two organizations.
2. Appropriate intervention will be required to get
the two on same platform.

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