The 7 S Model of Organizational Alignment

Paul to edit Master subtitle style Click Godfrey Marriott School of Management Winter 2010

The 7 S Model
The 7 S model helps describe organizational reality

A set of buckets to sort information Push on one side, the other sides all move The 7 Ss constitute a system The Hard Triangle: Strategy, Systems, Structure The Soft Square: Staffing, Skills, Style, Shared Values

The 7 Ss as a balloon

Two components:

The 7 S Model
Strategy

Structure

Systems

Shared Values

Staffing

Skills

Style

Strategy
Organizational Goals Competitive Advantages

Structure
Division of Labor Reporting responsibilities

Systems
Coordination Control

Shared Values
Common Belief Priorities

Staffing
Hiring, Training, Promoting

Skills
Technologies What we do well

Style
Interpersonal relationships

The Positives

Strategy
Full Service Regional Coverage Focused on Core Long Term View

Structure
Decentralized Functional Expertise Geographic Focus

Systems
Tight Cost Control Bonus Incentives Merit Promotion

Shared Values
Conservative Profitability Loyalty Decentralization Equity & Generosity

Staffing
Hire good people MDP Promote from within

Skills
Customer Service Cost Control

Style
Informal Friendly Practical

The Negatives

Strategy
No focus on niches No operating synergies Few strategic assets

Structure
Management by exception Functional Silos with little communication

Systems
Excessive Internal Focus Little incentive pay Promotion on Seniority

Shared Values
Comfortable Complacency Excessive Frugality

Staffing
Hire by W.O.M. Little Training Hard to Fire

Skills
We know what customers want Reliance on traditional ways

Style
Non-confrontational Little Challenge & debate Slow to decide

Expanding the 7 S Model

Super-ordinate goals: What is the organization trying to accomplish? Situation/ Stakeholders: What is the overall environment the organization faces? Self: What is the role of the change agent in the model?

The Expanded 7 S Model

Super-ordinate Goals

Strategy

Sel f
Systems

Structure

Shared Values

Staffing

Skills

Style

Advantages of the expanded model

Adding super-ordinate goals brings out more clarity Strategic objectives (market share) vs. strategy tools (differentiation) Goals as a reflection (manifestation) of shared values Goals can shift, causing misalignment Adding the Situation/ Stakeholders places the organization In both competitive space and time Most misalignments begin with changes in this area and ripple through the system Adding the self focuses on the role of individuals to impact the system