According to Dagmar Recklies, the 7-S-Model is better known as McKinsey 7-S. This is because Tom Peters and Robert Waterman have been consultants at McKinsey & Co at that time. They published their 7-S-Model in their article “Structure Is Not Organization†(1980) and in their books “The Art of Japanese Management†(1981) and “In Search of Excellence†(1982).
The basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful. It is the seven key elements of an organization that are critical to understand its effectiveness. These seven elements are: Strategy, Structure, Systems, Shared Values, Style, Staff, and Skills. During their study Peters and Waterman observed that managers are getting more done if they pay attention to seven S’s instead of just two (the hardware criteria), and real change in large institutions is a function of how management understand and handle the complexities of the 7-S Model. Peters and Waterman also reminded the world of professional managers that soft is hard meaning that it is the software criteria of the model which often are overlooked and which should have the highest focus when embarking on the journey to excellence.
2.2.2 Types of change and change management
Organizational change exists in different forms. Each form requires a unique management approach. Each approach to change management is influenced by the degree of complexity, cost and uncertainty which an organization has to experience in addressing the change (Rees and French, 2013). The most frequent types of change occurring in organizations are categorized as: developmental, transitional, and transformational. Developmental change is the simplest type of change. It focuses on improving what an organization is currently doing rather than creating something radically new. According to Tucker (2007) developmental change is exhibited if a company decides to update its policies, methods and procedures. Anderson and Anderson (2010) exemplify developmental change as increase in sales or quality, interpersonal communication training, simple work process improvements, team development, and problem-solving efforts.
Transitional change is a shift from an old state to a new context (De Roo, 2008). This type of change is challenging to manage. Its introduction and management requires leadership and organizational investments. For transitional change, major modifications are needed to organizational structure, policies and procedures, and individual skills (Rikerjoe, 2009). This type of change involves unfreezing the existing organizational equilibrium, moving to a new position or state, and then freezing in a new equilibrium position (Hunter, 2007). Under this category of change, the future state is radically different from the current state. As a result of the high degree of difference between the two states, employees and organizational culture must radically change in order to successfully adapt to the new state (Anderson and Anderson, 2010).
Transformational change is similar to transitional. However, there is a thin line separating the two forms of change. Whereas transformational change deals with complex and unpredicted outcomes, transitional change deals with simple, but unpredictable outcomes. Beckhard and Pritchard (1992) regarded transformational change as fundamental change. A fundamental change requires radical shift in a company’s culture, business strategy, and processes. Change will continually be a feature of the external environment of organizations. Internal change therefore, is requisite requirement for coping with environmental dynamism (Burnes, 2004).
2.2.3 Levels of Change Management
There are two main levels where the change management practices can be applied. Firstly, individual change management where individuals are supported and managed in how to transit change successfully by teaching them good tools and techniques and understanding their roles through the change process (Hiatt and Creasey, 2012). This includes: managers coaching to help their employees through change, holding focus conversations with employees, especially resistant ones, determining diagnose gaps in the program of managing change for each department, and identifying corrective actions which are based on desired results (Kunze et al., 2013).
Secondly, organizational change management, that is defined as the manager’s perspective from the top looking down in the organization. It concerns the skills and practices that help the organization navigate the needed change easily and successfully. It includes using individual change management tools with organizational tools like communications, and training the overall culture of the organization (Mou, 2013).