Page 196 - DCOM506_DMGT502_STRATEGIC_MANAGEMENT

Strategic Management

Notes Alignment of the Framework

Successful implementation of strategy requires the right alignment of different elements within
the organisation. The Mc Kinsey consultants call strategy, structure, and systems as the “hard
elements” of the organisation and the other 4 Ss i.e. style, skills, staff and super-ordinate goals as the
“soft elements” of the organisation. The hard elements are more tangible and definite, and so they
are often the ones that gain the greater attention, however, the soft elements are equally
important, even if they are less easy to measure, assess and plan.

Merits of 7-S Framework

The virtue of 7-S framework is that it highlights some important organisational interconnections
and their role in affecting change. It illustrates, in a simple way, that the real task of implementing
strategy is one of bringing all 7-Ss into harmony. When the 7-S are in good alignment, an
organisation is poised and energized to execute strategy to the best of its ability.
Secondly, the Mc Kinsey’s model provides a convenient checklist for judging whether an
organisation is ripe for implementing strategy. It also helps in diagnosing why the results
emanating from the implementation of a strategy fall short of expectations and therefore, what
new ‘fits’ would be required.

Thirdly, the framework also helps strategists in evaluating their organisations along each of the
seven dimensions, thereby identifying organisational strengths and weaknesses.
Finally, Mc Kinsey’s 7-S framework is a powerful expository tool. However, it should be
remembered that changing the organisational elements is not an easy task. But that should not
stop one from striving to bring about change.

Limitations of 7-S Framework

The 7-S framework shows that relationships exist and it provides some limited clues as to what
constitutes more effective strategy implementation. Beyond this, however, it is not precise. For
example, the framework says little about the how and why of interrelationships. The model is
therefore poor at explaining the logic and methodology in developing the links between the
elements.

A further weakness is that the framework does not highlight or emphasize other areas that have
subsequently been identified as being important for strategy. Those areas are:
1. Innovation

2. Knowledge
3. Customer-driven service
4. Quality
The above elements are equally important for any organisation to succeed.

In spite of the above limitations, the 7-S framework provides a way of examining the organisation
and what contributes to its success. It is good at capturing the importance of the links between
the various elements. That is why Mc Kinsey consultants used it as a starting point for their
search for more detailed interconnections.

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