This doctoral-level analysis examines the McKinsey 7S Model as a comprehensive strategic implementation framework for organizational change. The essay explores how external competitive pressures drive organizational restructuring, using examples from BlackBerry, IBM, and General Electric. Through detailed evaluation of the seven interconnected elements—strategy, structure, systems, shared values, skills, style, and staff—the study demonstrates how this framework enables effective strategic alignment and implementation.
Submit a 4-page evaluation of your research on a specific tool for strategic implementation. Your evaluation should include the following:
1. A brief description of your chosen tool, including relevant background, an APA-cited scholarly illustration, and detailed rationale for your choice
Occasionally, business must undergo a reorganization. This reorganization occurs primarily due to either internal or external competitive pressures placed on the firm. In many instances external pressures often have a very overwhelming influence on the strategic implementation of a reorganization. For example, external forces can change the overall competitive dynamic of the organization requiring it to implement strategic changes. This often occurs in highly technological organizations that require a very high degree of innovation in order to stay relevant within an industry. Without it, technological products can easily become obsolete causing the firm to lose market share and lose profits. This has occurred on numerous instances within the technology field. For example, the phone manufacturer Blackberry was once considered the preeminent smartphone maker in the world. Their brand was synonymous with security, safety and longevity. However, now due to technological obsolescence the company has shifted and reorganized the company to focus on software solutions. The company no longer manufactures phones and has instead has discontinue the business segment. The same form of reorganization has occurred with once dominate firms such as General Electric and IBM. Both companies have recently announced reorganizations due to an inability to keep up with changing market dynamics. In the case of IBM, the company was late in the recent technology innovations occurring in the market. As a result, the firm has decided to spin off portion of their business to create separate publicly traded entities. Likewise, General Electric has spun itself off to three separate public traded companies focused on healthcare, aviation, and energy. Each of these elements required strategic implementation related to reorganization. The catalyst for this reorganization came from external forces which include competitive pressures, innovation, and overall organization structure. To combat these external dynamics all of the organizations mentioned above decided to break their respective companies up into small, more manageable pieces that can mitigate the negative elements of these external forces (Allen, 2007).
The chosen tool for strategic implementation chosen is the 7S Model. As it relates to the background related to the 7S model, it is comprehensive approach that attempts to account for both internal and external element to strategic implementation. Use the 7S model, businesses will look to align implementation and execution of the strategic change. The model was made popular by Mckinsey and Company back in 1980, and has become a fundamental model used in many strategic implementations. Although simple, the model looks to provide a clear and concise method of capturing key strategic elements within an organization. Here, the 7 “S” model refers to seven important elements that an organization should align before implementing any form of strategy (Caldwell, 2013). The seven S’s are as follows
Each of these elements are part of a comprehensive whole, which, when done correctly can provide organizations with a much higher change of being successful with strategic implementations. The model has been used and validated by several technology firms such as Google, Amazon, and Intel. As the technology industry is heavily innovative and requires large amount of change management, the ability of these organizations to successful adopt this model is a testament to its validity. Table 1 is a visual representation of the 7S model.
2. An assessment of how your chosen tool is affected by different strategic influences (such as environmental factors; internal, organizational considerations; etc.) and whether these changes impact your choice for implementation. Include at least one supportive example.
The 7s model is heavily impacted by different strategic influences. As noted above, external factors play a major role in strategic influences. For one, rapid technological change and innovation can disrupt antiquated business operations. This has occurred in numerous industries such as retail, financial services, auto manufacturing, and telecommunications. In each instance, the changes required a different implementation of the 7s model. For example, within the retail industry, the emergence of e-commerce and online retailers have forces traditional retailers to modify their overall business model. Here, many organizations where unable to do so, as they where unable to adapt properly to changing consumer preferences. Many retailers, including stalwarts such as Sears, JC Penny, Men’s Warehouse, Brooks Brothers, GNC, Payless, and more all went bankrupt. They each experiencing large financial pressures as many where not able to properly implement the 7S model described above. Those who were able to change often leveraged the 7s model to adapt all facets of their organization to changing consumers sentiments and preferences. For example, retailers such as Wal-Mart invested heavily in staffing buy raising wages, increasing benefits and acquiring businesses with very strong technology and e-commerce backgrounds. They also changed their operations structure to be much nimbler, by automating processes from logistics to distribution. This included updating systems to better accommodate the convenience needs of consumers, leveraging innovations such as self-checkout and “buy online pick up in store.” These changes all revolved around Wal-Mart’s shared values of everyday low prices and value for consumers. By using each of the elements within the 7s model, the company has used the threat of e-commerce as a means of growing their overall market share and competitive position within the retail industry (Bordia, 2011).
3. An explanation of the usefulness of your chosen tool to you as a practitioner and independent scholar, including how it will benefit your strategic business leadership. Be sure to provide supportive scholarly examples
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