The Seven-S Model

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The Seven-S Model
The Seven-S Model
A framework to guide and evaluate
organization development to achieve
vision and produce desired
performance results.

Framework
The 7 – S model has its origins from the classic, 'The Art Of Japanese
Management', by Richard Pascale Tanner & Anthony Athos during the
early eighties. Over the years it has become a widely accepted tool for
understanding how a high performing organization must be managed.
The model has evolved in practice beyond the OD world and is now a
common model utilized by many firms such as McKinsey as a diagnostic
tool.
When applied to an organization it can be a most effective tool for
identifying and targeting those areas which need attention and focus.
By gaining better alignment between the 7 S’s, the organization can more
effectively execute on its mission and vision.
In ABC Company, the model is used as a tool for assessing organization
performance and targeting areas for OD intervention.
Over the years, the leadership team has made significant changes in all
of the S’s in order to be better aligned with Headquarter and with
customers.
The ABC company systematically uses this model and tool to guide the
development of the OD strategy, supported by Larcen Consulting
In the following slides the 7S’s are defined and lesson learned

Streams (Environment)
INPUTS Shared Values (Boundary)
INP
INPUTS
UT
Strategy
S
INPUTS
Performance
Vision
Skills
Structure
SYNERGY
INPUTS
OUTPUTS
Systems
Style
Staff
Through Puts
Feedback
Through Puts
FEEDBACK

Overview of the 7S Model
STREAMS
The external environment that impacts the organization’s formulation of
STREAMS
The external environment that impacts the organization’s formulation of
strategies, systems, structure, style, staff and skills
strategies, systems, structure, style, staff and skills
SYNERGY
Synergy results from alignment throughout the organization with regard to
SYNERGY
Synergy results from alignment throughout the organization with regard to
strategies, systems, structure, style, staff and skills
strategies, systems, structure, style, staff and skills
The organization vision formulates the foundation and precursor to the
The organization vision formulates the foundation and precursor to the
development of the organization strategies, systems, structure, style, staff
VISION
development of the organization strategies, systems, structure, style, staff
VISION
and skills.
and skills.
Vision may need to be adapted based on external and internal dynamics.
Vision may need to be adapted based on external and internal dynamics.

Overview of the 7S Model
Derives from assessment of organization internal Strengths &
Derives from assessment of organization internal Strengths &
Weaknesses, and external Opportunities & Threats (SWOT Analysis);
Weaknesses, and external Opportunities & Threats (SWOT Analysis);
includes environment influences; nature of competition; company
includes environment influences; nature of competition; company
distinctive competencies; company key success factors
distinctive competencies; company key success factors
STRATEGY
STRATEGY
Strategy must be dynamic not static—responsive to the internal and
Strategy must be dynamic not static—responsive to the internal and
external environment
external environment
Strategy represents the major approaches adopted by the organization to
Strategy represents the major approaches adopted by the organization to
achieve the vision and goals
achieve the vision and goals
Represents how the company is organized to execute strategy
Represents how the company is organized to execute strategy
Structure may be centralized or decentralized
Structure may be centralized or decentralized
STRUCTURE
Structure may be “flat” and matrixed or organized in “silo’s”
STRUCTURE
Structure may be “flat” and matrixed or organized in “silo’s”
Structure should be designed to facilitate achieving corporate vision,
Structure should be designed to facilitate achieving corporate vision,
goals & strategies
goals & strategies

Overview of the 7S Model
•• Formal systems may include:
Formal systems may include:
Measurement systems (including planning)
Measurement systems (including planning)
Performance management systems
Performance management systems
SYSTEMS
SYSTEMS
Resource allocation systems
Resource allocation systems
•• Informal systems may include:
Informal systems may include:
Meeting formats
Meeting formats
Conflict resolution protocols
Conflict resolution protocols
•• Staffing considerations may include:
Staffing considerations may include:
Demographics makeup (diversity)
Demographics makeup (diversity)
Selection criteria and promotion factors

STAFF
STAFF
Selection criteria and promotion factors
Staff development programs & opportunities

Staff development programs & opportunities
Culture within the organization
Culture within the organization

Overview of the 7S Model
•• The manner in which leaders and
The manner in which leaders and employees “behave”
employees “behave” internally and
internally and
externally
externally
STYLE
STYLE
•• The manner in which the compan
The manner in which the compan y interacts with stakeholders,
y interacts with stakeholders,
customers, regulators, etc.
customers, regulators, etc.
•• The principles adopted by the company
The principles adopted by the compan to guide its style & behavior
y to guide its style & behavior
•• The organization should be pro-active
The organization should be pro-active to define the corporate values and
to define the corporate values and
SHARED
SHARED
the desired behavior
the desired behavior for leaders and employees consistent with these
for leaders and employees consistent with these
VALUES
VALUES
values
values
•• Values and desired behavior
Values and desired behavior must be
must be communicated to and embraced by
communicated to and embraced by
the entire organization
the entire organization
•• Differentiating characteri
Differentiating characteri stics of the company’s products and services
stics of the company’s products and services
•• Core competencies required by
Core competencies required by leaders and other categories of
leaders and other categories of
SKILLS
SKILLS
employees in order for the company
employees in order for the company to effectively execute against the
to effectively execute against the
vision, values, goals and strategies.
vision, values, goals and strategies.

Overview of the 7S Model
The HR Business Partner should use this model as a “template”
against which to assess the current organization.
Questions can be formulated around each of the Seven S
components that are relevant to the company or organization
being assessed.
The “results” of this assessment will provide data that can be
used to formulate recommended interventions
Action or Tactical Plans can then be developed and executed
with involvement of the appropriate organization leaders and staff

7S Objective for ABC Company
To optimize leadership and management effectiveness in ABC
Company
To develop capabilities and contributions in the context of the real
work and real teams
To build a reservoir of talent that can grow with the company and
be ready to assume greater leadership responsibilities
To build functional role clarity
To support cross functional effectiveness
To encourage a culture of initiative, leadership and contribution
To design tools for accurately measuring and tracking leadership
and functional effectiveness

History / Background
7S OD work has had a building block approach for over 10 years
at ABC Company
Began initially with the President of sales office, with the goal
to build senior team effectiveness
Evolved into a structured leadership development program
focused first on senior team members and then transitioned to
include action learning projects in which middle managers
who were mentored by senior managers solved some key
organizational problems while developing their own leadership
skills
Work now focused on very clear measurement of performance
tracking over time so that high potential leaders are supported
to grow in effectiveness
In 2010, work will include the “up and comers” who have the
potential to move into top leadership roles over time - Program
has become more structured both in measurement but also in
strategic intent

Document Outline

  • The Seven-S Model