McKinsey 7S Framework: OD Analysis of Apple Inc.

Introduction to Organizational Diagnosis and the McKinsey 7S Framework

Organizational diagnosis is a valuable tool for evaluating an organization's desired performance against its current performance, with the aim of formulating measures to bridge any identified gaps. The model best suited to an OD analysis of Apple Inc. is the McKinsey 7S Framework. According to Partridge (1999), the framework "was developed as a way of showing that the key elements of the organization interrelate — and that each element needs to be consistent and compatible with the strategy that is being introduced and managed" (p. 30). The seven variables include shared values, style, staff, systems, strategy, structure, and skills (Falletta, 2005). The selected Fortune "Best 100" organization for this analysis is Apple Inc.

Why the McKinsey 7S Framework Suits an OD Analysis of Apple

While many OD models have been proposed over time, the McKinsey 7S Framework stands out as the most consistent tool for analyzing how well positioned Apple is to attain its targets and strategic aims. This is particularly true given the comprehensive nature of its outlook and the equal importance it assigns to various key elements. Whereas structure and strategy have historically received the greatest attention in analyses of organizational effectiveness, this framework highlights the equal relevance of shared values, style, systems, and skills in the success equation.

The framework demonstrates that no element should be considered in isolation — the mutual dependency among all seven variables is illustrated through interconnecting lines in the model's diagram. As a result, any failure by Apple to achieve its objectives could potentially be traced back to the neglect of one or several of these elements.

Applying the Seven Elements to Apple Inc.

In conducting an OD analysis of Apple using the McKinsey 7S Framework, the first step is to analyze each of the seven elements and identify the factors deemed critical for success. By examining each element's critical features, it becomes possible to identify areas in which Apple is performing well versus areas in which performance is lacking. Identified gaps and inconsistencies would then pave the way toward the desired organizational state from the present state.

It should be noted, however, that to successfully apply the McKinsey 7S Framework in this OD analysis, the interrelationships among the various elements must be carefully managed. No element operates independently, and changes in one area are likely to produce ripple effects across the others.

Conclusion

In the final analysis, the McKinsey 7S Framework applied in the case of Apple would help improve the company's organizational performance. Towards this end, it would assist in evaluating how future changes are likely to impact the company and in formulating a strategic action plan. Given that different approaches take into consideration various factors — including both internal and external factors — the most valuable approach is one that promotes the harmonious working together of all organizational parts. This integrated perspective appears to be the most effective way of ensuring that an organization is well positioned to pursue its goals.

References

Falletta, S. V. (2005). Organizational diagnostic model: A review & synthesis. Leadersphere, Inc.

Partridge, L. (1999). Creating competitive advantage with HRM. Select Knowledge Limited.