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MindMap Gallery 7S Model A valuable tool for analyzing and evaluating organizational performance and corporate strategy

7S Model A valuable tool for analyzing and evaluating organizational performance and corporate strategy

Does corporate strategy and organizational performance always mismatch? The 7S model helps you solve it. It comprehensively analyzes the company's status from seven dimensions: strategy, structure, and system. Helps you judge the adaptability of organizational performance and strategy and find directions for improvement. Whether it is optimizing internal management or adjusting strategic layout, the 7S model can provide effective guidance, come and try it!

Edited at 2025-01-16 17:53:58

Mason·Carter

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7S Model A valuable tool for analyzing and evaluating organizational performance and corporate strategy

Mason·Carter

Recent works View more works>>

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Outline

7S Model: A valuable tool for analyzing and evaluating organizational performance and corporate strategy

1. Conceptual meaning

The 7S model was jointly proposed by Richard Pascal, Anthony Essorth, Thomas J. Peters and Robert H. Waterman Jr. in 1978. The model points out that corporate development needs to fully consider Structure, Systems, Style, Staff, Skills, Strategy, Shared Values and other aspects. Among them, strategy, structure and system are the "hardware" of the success of the enterprise, and style, personnel, skills and common values are the "software" of the successful operation of the enterprise. This model reminds managers that software and hardware are equally important and closely related to the success or failure of the enterprise.

2. Tool analysis

2.1 Hardware factor analysis

1. Strategy: Strategy is the overall planning of development goals, ways and means based on internal and external environment and resource conditions. It is the concentrated embodiment of business ideas and the result of strategic decision-making, and it is also the formulation. The basis of planning and planning. The importance of strategy is reflected in forward-lookingness, which should predict, guide the development of enterprises and keep pace with the times; integrity, relevant factors need to be considered from the overall system; flexibility should be appropriately adjusted with social development.

2. Structure: Strategic implementation requires a sound organizational structure as a guarantee. Organizational structure is an effective arrangement and combination of corporate organizational elements, serving strategies, and different strategies correspond to different organizational structures. For example, General Electric has solved the problem of lagging administrative management by adjusting its organizational structure and increased its profits.

3. Systems: A system that relies on perfection in corporate development and strategic implementation. Systems are the concrete manifestation of corporate spirit and strategic thinking. Enterprises should formulate a system consistent with the strategy to avoid systems that are not matched or deviated from the strategy. For example, the innovation system of 3M Company has greatly stimulated employees' enthusiasm for innovation.

2.2 Software element analysis

1. Style: Outstanding enterprises usually present a management style that is both lenient and strict, giving production and product development departments a high degree of autonomy, and adhering to core values.

2. Shared Values: Strategy needs to be understood and implemented by all employees. Common values have a guiding, restrictive, cohesive, motivating and radiating effect on employees. Enterprises should make employees understand their strategic intentions through publicity. Japanese companies focus on communicating the ideas of leadership and execution levels, ensuring the smooth implementation of the strategy.

3. Staff: Strategy implementation cannot be separated from sufficient human preparation. Enterprises should be equipped with a staff team that is consistent with strategic ideas and strengthen training and publicity and education. For example, IBM respects individuals, and McDonald's employees provide smiling services, reflecting the adaptation of personnel and corporate strategies.

4. Skills: Employees need to master certain skills when implementing strategies, which relies on rigorous and systematic training. Konosuke Matsushita believes that employees need to be trained to become outstanding talents.

3. Example application

Case 1: Analysis of the 7S model of China's telecommunications industry transformation

1. Strategic level: The strategic transformation direction of China's telecommunications companies is to shift from product competition to service competition. China Mobile Communications Company has carried out this transformation earlier and has a better choice of timing.

2. Execution level

- Structure: The organizational structure of China's telecom operators has transformed to the front-end and back-end model, which matches the service competition strategy, but the management difficulty is increasing and the requirements for employee quality are improved. How to weigh centralization and decentralization and cultivate high-quality employees is a challenge.

- System: A perfect system is the guarantee of corporate development and strategic implementation, and corporate governance is an important aspect. Although China Telecom operators have undergone corporate transformation, there are problems in relevant aspects of the board of directors and need to be solved through pilot projects.

- Style: Corporate culture should focus on stakeholders, and excellent corporate culture is reflected in the care and actions for stakeholders. China Mobile is better than several other operators in corporate culture display, and China Telecom companies need to demonstrate corporate culture through behavior.

- Capacity: Chinese telecommunications companies lack core competitiveness, and transformation requires the cultivation of core capabilities in business innovation, customer service and other aspects.

- Personnel: China's telecommunications companies need to establish a scientific personnel management system to stimulate employees' enthusiasm, and transformation is related to government policies.

- Highest goal: China Telecom, China Unicom and Netcom need to form their highest goals in transformation because they are the basis for corporate development.

4. Tool comparison

4.1 New 7S model

#4.1.1 Concept Meaning

The new 7S model was proposed by Da Vinie. In a super competitive environment, companies have established temporary competitive advantages through a series of temporary actions, and breaking the status quo is the key to winning the competition.

#4.1.2 Content Structure

1. Higher shareholder satisfaction: Shareholders cover customers, employees, etc., and customer satisfaction is the growth point of the company's development. Intel takes serving customers first and establishes a synchronous process to allow customers to participate in chip design.

2. Strategic Soothsaying: Enterprises need to foresee the future evolution of the market and technology and create new opportunities. Komatsu's dual F plan has opened up new space for it to grow.

3. Speed capability: In a super competitive environment, the ability of an enterprise to quickly transfer its advantages is crucial. Gallo Winery quickly adapts to changes in market demand and achieves a transformation from low quality to high quality.

4. Surprise Handling capability: Enterprises should explore value innovation and transcend traditional reference systems. Canon launched a 35-centimeter autofocus camera, which unexpectedly hit the market.

5. Shifting the Rules of Competition: Changing the Rules of Competition can break existing ideas and patterns. Seiko, Casio and Swatch have achieved success in the watch market by changing the rules of competition.

6. Signal Strategic Intent: Announcement of strategic intentions can warn competitors and form a "placeholding" effect. Implementing this strategy requires the company to have strength and credibility.

7. Continuous strategic impact (Simultaneous and Sequential Strategic Thrusts): Enterprises need to properly apply their knowledge and abilities to win through continuous actions. Komatsu Company weakened Ketterpillar's market control through a series of actions.

#4.1.3 Comparison with 7S model

The traditional 7S model focuses on static strategic coordination within the organization. The new 7S model emphasizes the four goals of destroying the status quo, creating temporary advantages, grasping opportunities and maintaining momentum based on long-term dynamic strategic interactions, so as to remain proactive in super competition.

#4.1.4 Case: Analysis of the new 7S model in the camera industry

In the competition in the camera industry, Kodak and Polaroid compete in the instant imaging market, and Kodak uses its own advantages to defeat Polaroid. Subsequently, Japanese companies such as Canon used the new 7S model to launch an attack on Kodak in the 35mm automatic zoom camera market, and successfully seized market share through advantages in higher customer satisfaction, strategic prediction, speed, etc.