Internal Technology Framework: 7S Framework

Introduction

In the modern age of cutting-edge technology and continuous innovation, product life cycle is ever shortening. There is constant pressure on companies to differentiate from competition and earn customer satisfaction. In such a business environment, it is essential that internal organization network is strong and efficient to deal with any kind of changes.

The 7S framework introduced by McKinsey is one of the ways through which analysis can be done to determine the efficiency of organization in meeting strategic objective.

The 7S model is utilized to study and suggest areas within company which needs improvement, examine the effects with change in strategy, internal alignment with every merger and acquisition.

7S Framework

The 7S framework constitutes of 7 factors, which affect organizational effectiveness. These 7 factors are strategy, organizational structure, IT systems, shared values, employee skills, management style and staff.

These 7 factors can be broadly categorized into Hard Elements - Strategy, Structure, Systems and Soft Elements - Shared Values, Skills, Style and Staff. Hard elements highlighted above are the ones which are under direct control of management. Soft elements are not in direct control of management and are driven by internal culture.

The 7 factors as per the framework can be defined as follows:

1. Strategy: It is defined as an action plan working towards the organizational defined objective.

2. Structure: It is defined as design of organization-employees interaction to meet defined objective.

3. Systems: It is defined as information systems in which organization has invested to fulfill its defined objective.

4. Staff: It is defined as workers employed by the organization.

5. Style: It is defined as the approach adopted by the leadership to interact with employees, supplier and customers.

6. Skills: It is defined as characteristics of employees associated with the organization.

7. Shared Values: It is the central piece of the whole 7S framework. It is a concept based on which organization has decided to achieve its objective.

Usage of 7S Framework

The basis of the 7S framework is that for organization to meet its objective it is essential all the seven elements are in sync and mutually balancing. The model is used to identify which out of 7 factors need to be balanced as to align with change in organization.

7S framework is helpful in identifying the pain points which are creating a hurdle in organization growth.

Technology and 7S Framework

In digital age, technology and technology-driven information systems both are game changer as far as meeting objective for organization is concerned. Companies are moving towards automation, cloud computing, etc. This has led to technology as central nervous system of the organization.

The 7S framework is applicable across all industries and companies. It is one of the premier models used to measure organizational effectiveness. In this challenging environment, strategy of organization is constantly evolving. In such an environment, it is essential organization to look back upon its seven elements to identify the source which is hampering the growth.

Organization can use the 7S framework to identify its position with existing strategy.