The McKinsey 7s change model is a framework developed by consulting firm McKinsey & Company to help organizations navigate through organizational change. The model identifies seven key elements that need to be aligned in order for a change initiative to be successful. These elements are:
1. Strategy: This refers to the organization's plan for achieving its goals and objectives. It includes the organization's mission, vision, and overall direction.
2. Structure: This refers to the organization's formal hierarchy and reporting relationships. It includes how work is divided and coordinated within the organization.
3. Systems: This refers to the processes and procedures that support the organization's operations. It includes the organization's information systems, performance management systems, and other tools that help employees do their jobs.
4. Shared values: This refers to the organization's core beliefs and values. It includes the organization's culture and the norms that guide employee behavior.
5. Skills: This refers to the capabilities and competencies of the organization's employees. It includes the knowledge, skills, and abilities that employees need to perform their jobs effectively.
6. Style: This refers to the leadership style and management practices within the organization. It includes how decisions are made, how employees are motivated, and how conflicts are resolved.
7. Staff: This refers to the organization's workforce. It includes the number of employees, their roles and responsibilities, and their level of engagement and commitment.
The McKinsey 7s change model suggests that all seven elements need to be aligned in order for a change initiative to be successful. For example, if an organization is implementing a new strategy, it needs to ensure that its structure, systems, shared values, skills, style, and staff are all aligned with that strategy. If any of these elements are out of alignment, it can create barriers to change and hinder the organization's ability to achieve its goals.
One relevant example of the McKinsey 7s change model in action is the turnaround of Ford Motor Company in the mid-2000s. When Alan Mulally took over as CEO in 2006, he implemented a new strategy to focus on producing high-quality, fuel-efficient vehicles. To support this strategy, Mulally also made changes to the organization's structure, systems, shared values, skills, style, and staff. For example, he reorganized the company's management team, implemented new performance management systems, and fostered a culture of collaboration and transparency. By aligning all seven elements of the McKinsey 7s model, Mulally was able to successfully turn around Ford and restore it to profitability.