WFED582:

Lesson 4: Organization Diagnosis Model I

Organizational Diagnosis Model 3: McKinsey 7-S Framework (1982)

• The 7-S framework was developed in the late 1970s by McKinsey & Company and published in book format in 1982, generating a lot of interest among consultants and business people. It is still used today.
• The 7-S framework examines the elements that give a holistic understanding of an organization, including
  • strategy, a course of anticipated actions that allow an organization to achieve a competitive advantage;
  • structure, the way in which tasks or chains of command are distributed;
  • systems, which support the structure's effective functioning (for example, a performance management system allows management to ensure that outcomes are delivered in a quality manner);
  • skills, or the individual and institutional skills within the organization;
  • style (sometimes referred to as organizational culture), the way in which work is done in the organization;
  • staff, the employees in the organization; and
  • shared values, or what the organization is exerting to achieve. Shared values represent the essence of what the members in the organization believe.
• When comparing the 7-S model with Leavitt's model, you will notice that most of the models' elements overlap, though the 7-S model addresses more elements from a strategic perspective. Both models emphasize the congruence among elements.
• McKinsey is one of the representative management consulting companies that take the doctor–patient approach, collecting and analyzing organizational data without empowering the organization's members. However, when collecting and analyzing data using the 7-S model, OD practitioners should be sure to engage the organization's members as both participants and researchers who can draw meaningful conclusions from the data.

• See Dwyer and Mellor (1991) for a sample application of the 7-S model. Please keep in mind that this model should be applied differently in OD than management consulting.
• Review the 7-S model on McKinsey's website.
• To gain a better understanding of questions that can be asked during the diagnosis process, read The 7-S Model and Change: Increasing Your Chance of Organisational Success. The same questions and processes can be applied in OD, but with much more involvement from an organization's members.

References