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Implementing Mckinsey 7S Model of Organizational Diagnosis and Planned Change, Best Western Italy Case Analysis
Abstract
Best Western Italy operates under BW international Inc. a leading hotel and resort brand
that provides high quality accommodation services in numerous countries across the
globe. All of Best Western hotels are owned and managed independently. BW Italy is
the brand’s center for operations and reservation in the European market. It has gained
recognition from its unique reservations services involving strategic partners to ensure
their customers receive the best services at standardized rates. To reinforce its vision
and mission, BW Italy management came up with a yearlong “Make a Difference”
program to enhance employee commitment by aligning their goals to those of the
company. This would entail organizational change which involves a system-wide
transfer and application of behavioral science knowledge to the strategic development,
enhancement, and reinforcement of the plans, process, and structures that result in
organizational efficiency and effectiveness. The results included rearrangement of top
management to establish a flatter organizational structure with improved distribution of
leadership. A year after the program had been concluded, the General Manager was
aware that its implementation had created colossal excitement and interaction among
the employees who had taken part in it. However, four employees had refused to
participate in the program while the company had recruited ten new employees after the
program had ended. BW Italy needs to formulate a strategy to ensure that the “Make a
Difference “program changes are internalized by its employees and institutionalized
within the organization. The case analysis utilized secondary data acquired through a
case study performed on BW Italy during the implementation of the program. Data was
analyzed through the McKinsey 7s Model an effective tool used in analyzing
organizational change. The McKinsey 7s Model is an effective tool aimed at depicting
how effectiveness can be achieved within an organization through the interaction of 7
different organizational elements namely structure, strategy, skill, system, shared
values, style, and staff.
Keywords: Make a difference, Organizational change, Change program, Organizational
goals, Mission and values, Employee commitment, Top management, Organizational
diagnostic models, Performance outcomes
... 11 12 Through the interaction of its seven components, the McKinsey 7S framework model can assist organisations in achieving effectiveness. 19 In addition to the McKinsey framework, establishing an ISO 9001 quality management system (QMS) provides a useful strategy to address the issues faced in healthcare. ISO 9001 is an international standard for quality management that assists businesses of all sizes in enhancing their performance, satisfying their customers and showing their dedication to excellence. ...
Background
The Moroccan healthcare sector faces numerous quality challenges. Therefore, various strategies—such as the implementation of quality management systems (QMSs)—were put into practice to improve the quality of care and reinforce the healthcare system. Among these, ISO 9001 represents one formalised QMS framework. Despite its increasing adoption, only a few studies have attempted to evaluate how ISO 9001-certified QMSs influence hospital performance and effectiveness. Our study aimed to fill this gap by exploring the impact of an ISO 9001-certified QMS on organisational performance in a hospital centre in Casablanca, Morocco.
Methods
Initially, we employed the McKinsey 7S model as a diagnostic tool to evaluate organisational performance across seven key dimensions. Data were collected via structured interviews and a questionnaire administered to hospital staff. Additionally, clause 9 of the ISO 9001:2015 standard—focused on performance evaluation—was used to assess the QMS implementation. As for data analysis, the software Sphinx V5 was used for data entry, and IBM SPSS Statistics V.25 was used for reliability analysis and non-parametric tests.
Results
The results indicated a positive staff perception of the QMS’s performance and its impact on patient satisfaction, continuous improvement and overall hospital effectiveness. The results also highlighted gaps in organisational factors such as internal communication and staff training, suggesting areas for future improvement.
Conclusions
This study provided a dual-framework approach to evaluating and enhancing hospital performance by integrating ISO 9001 standard requirements with the McKinsey 7S model. The findings show the value of combining a formal QMS (ISO 9001) with organisational diagnostic tools (7S Model) in understanding and driving quality improvements in healthcare settings.
... Within change management, there are countless models to assist companies in their effective implementation. These models typically include the Lewin model (González et al., 2022), Kotter's 8-step model (Ravi et al., 2022), McKinsey 7S (Odeh, 2021) or the ADKAR model (Jaaron et al., 2022). However, it is also possible to encounter a variety of other existing models that do not necessarily focus on the entire change process, but only offer solutions to selected problems associated with change. ...
This paper focuses on change management in small and medium-sized enterprises (SMEs) in the Czech Republic, in particular on the implementation of technological innovations related to Industry 4.0. The qualitative research involved structured interviews with ten representatives of SMEs from different sectors and sizes. The results revealed that the approach to change management is influenced by the size of the enterprise: mediumsized enterprises use project management, while smaller enterprises often apply ad-hoc approaches. Employee resistance, costs and technical barriers are key barriers. The study highlights the importance of communication, employee involvement and pilot testing in implementing change. Based on the findings, a seven-phase strategic framework was
developed that includes status analysis, communication, employee engagement, visioning, pilot testing, implementation support, and anchoring change. This approach enables effective
change management and supports the long-term ompetitiveness of SMEs.
... The framework derives its name, 7S, from its incorporation of seven interconnected elements, all coincidentally commencing with the letter "S." These seven elements can be delineated as follows (Demir, & Kocaoglu, 2019;Odeh, 2021;Chmielewska et al., 2022): (1) Strategy: This element pertains to the organizational roadmap for accomplishing its goals and objectives. It encompasses the company's comprehensive business strategy, its approach to markets, competition, and strategies for growth. ...
This research addresses the critical aspect of evaluating operational performance in health promotion hospitals, which play a vital role in providing medical services to local communities. The research proposes an integrated method for performance assessment, utilizing the Best-Worst Method (BWM) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) linear programming model. Taking the case of health promotion hospitals in Maha Sarakham province, Thailand, and considering the McKinsey 7s framework's seven criteria, BWM is employed to determine the criteria weights. Subsequently, the TOPSIS linear programming model selects the ideal health promotion hospital based on these weights. The BWM analysis reveals criteria weights in the following order: system, staff, skill, style, structure, strategy, and shared value. The TOPSIS linear programming model identifies SH12 as the top-performing health promotion hospital with a closeness coefficient value of 0.8821. Additionally, a Spearman's rank correlation test validates this proposed method against the original TOPSIS approach, yielding a correlation value of 1.0. These findings provide valuable guidance for organizations, particularly in shaping strategic policies and resource allocation within medical service units, medical equipment, and personnel management in organizational settings. This study offers that the proposed method is simpler and will aid in the ongoing analysis of strengths and weaknesses in the improvement of organizations and development, helping organizations adapt to changes.
... The structure here describes a division and organizational business units. The structure is in the form of a new organizational structure proposed as a change (Kocaoglu & Demir, 2019a;Odeh, 2021). ...
In the era of Industry 4.0, many companies demand to determine a Change Management Strategy in order to maximize capacities and efficiency. Currently, PT XYZ sees existing problems in the IT division, which are not meeting demands as expected and slowing down the whole organization’s development. In accordance with these problems, Project Monitoring methods are proposed to be applied in PT XYZ’s organizational structure as a result of the Change Management Strategy. A Change Management Strategy will be implemented in the IT division using the proposed methods; Kotter’s Model and 7-S Framework followed by the development of a project monitoring application called Dashboard Monitoring. In accordance, with Kotter’s Model’s approach, the creation of two new positions is highly recommended inside the IT division to support its effectiveness. These positions are Project Management Officers and Business Analysts. These two positions are expected to focus more on the process of developing new applications and/or systems. Thus, the 7-S Framework implementation will be supporting the change of Shared & Value from the change in the organizational structure of PT XYZ with the objective of simplifying the process of analyzing and decision-making at the managerial level, especially in terms of deciding to create an application. Furthermore, a Dashboard Monitoring application has been implemented in PT XYZ, resulting in improvements in lead time and productivity throughout multiple IT projects. Objective – Developments in the era of Industry 4.0 make all companies adapt towards digitalization, to determine Change Management Strategies to maximize capacity and efficiency. PT XYZ sees problems in the IT division, where the IT Division cannot meet the demands as expected. Thus, resulting in delays in the development of the organization. Obstacles in processing so many requests in making applications between divisions in the company, developing a product application system is the biggest obstacle faced by PT XYZ. Methodology – The author uses the following Research Methodology; (1) understand the identification of existing problems based on the author's observations and communication with PT XYZ; (2) study the organizational structure: (3) Literature Review; (4) Interviews and observations at PT XYZ. The first stage is interviews with all Vice Presidents from all divisions at PT. XYZ. The second stage is an interview by asking the Chief Executive Officer of the company regarding information related to changes in the IT Division. ; (5) Kotter Framework and 7-S approaches, all of which start with analyzing with Dynamic Capability Theory; (6) Provide recommendations, propose to create a new IT division, then analyze the new organizational structure using the 7-S Framework and produce proposed new values. Findings – The author got information from PT XYZ Top Management, where from the results of this interview a Change Management Strategy is proposed to be implemented in the organizational structure of PT XYZ. The Change Management Strategy will be implemented in the IT division using the proposed method, namely the Kotter Model and the 7-S Framework, which were previously analyzed using the Dynamic Capability approach. Then followed by the development of a project monitoring application called Dashboard Monitoring. Novelty – The author implementing the 7-S Framework to support Shared & Value changes from changes in PT XYZ's organizational structure. Next implement the Kotter Model Strategy which explains 8 Strategies to produce recommendations for changes to PT XYZ's organizational structure, by adding the positions of PMO (Project Management Officer) and BA (Business Analyst). In addition, the Dashboard Monitoring application was also implemented at PT XYZ, resulting in increased lead time and productivity in various IT projects.
Background: The term e-government has become popular, especially in recent years. Governments around the world have sought to integrate technology into the way they operate and the way they serve their citizens. A number of countries in the developing world are in the process of implementing e-Government initiatives to help improve service delivery and provide better opportunities for their citizenry with the objective of improving governance.. The study’s objective was to establish how e-Government adoption contributes to public service organizations’ performance in developing countries specifically focusing on Process efficiency and effectiveness, compliance with government policies and Service Quality and Accessibility. The study was anchored on two theories; Technology acceptance Model (TAM) and Social Systems theory. They are best suited for this study because they collectively explain how individual acceptance of e-Government technologies (TAM) and broader organizational and social dynamics (Social Systems Theory) influence the performance of public service organizations in developing countries like Kenya.
Corporates have been exposed to risks as they operate in various industries, possibly leading to business closure. The increased potential risks of VUCA, wrong strategy implementation, lack of business diversification, and absence of governance may lead corporates to encounter losses ranging from decreased market shares to a total failure to achieve business continuity. Corporate leaders set strategies to provide guidance, improve performance, and mitigate risks. Grounded in Edward Freeman's stakeholder conceptual framework, the purpose of this chapter is to explore the corporate strategy's important role in achieving business continuity and organizational success. Data were collected from a review of previous literature and two case studies of corporate strategies and their implementations. A key recommendation for corporate leaders is to set strategies that fit their corporate needs. A fit for purpose corporate strategy may allow the corporate to achieve business continuity, extend opportunities, and positively impact communities' stability and growth.
The selection of the optimal strategic option is essential for long-term business success. Such strategic choice is a comprehensive process that involves narrowing down the strategic options after thorough consideration of the possible impacts of the most influential internal and external factors. This chapter begins with the introduction of Mintzberg’s strategy definition in terms of his 5Ps model that includes the core elements of plan, ploy, pattern, position and perspective, followed by the key selection criteria for strategic choices. Subsequently, some effective strategic management instruments can facilitate the strategy selection process in business practice, such as Porter’s generic strategies, Ansoff matrix, BCG matrix, McKinsey 7-S model and Blue Ocean vs. Red Ocean Strategy.
In the modern era, infinite selfless behavior patterns of employees play a central role in founding a great place of work. But it is hard to expect altruistic behaviors from employees as the game of business is frolicked in a dynamic and competitive arena. Surprisingly, most employees were concerned only about themselves and over-utilized the COVID-19 catastrophe to rationalize their egotistic behaviors. However, scholars found that employees who demonstrate altruistic behaviors are more likely to be optimistic and cheerful than egocentric employees. Hence, employers need to discover appropriate strategies to nurture altruistic behaviors at the workplace. Nowadays, employees have an inner desire to accept tasks, duties, and responsibilities which add more meaning to their work lives. No matter what the situation is, meaningful work can maintain the employee's momentum even during a crisis. Scholars have proved that meaningful work is a significant contributor to altruistic behavior in the workplace. Hence, this study investigated the impact of meaningful work on altruistic behavior with special reference to private sector banking employees in Sri Lanka. Researchers conducted this study in a quantitative perspective along with the positivism philosophy, deductive approach, and survey strategy. Through convenience sampling, data were collected from 149 private sector banking employees in Sri Lanka. Based on the regression analysis, researchers proved that meaningful work could create 34.1% of an effect on employee's altruistic behavior. Hence, it is evidenced that when employees receive meaningful work, they are intrinsically inspired to exhibit altruistic behaviors at the workplace.
Given the key role of organizational factors for improving firm’s innovation capability, the purpose of this study is to explore the level of influence of organizational factors namely transformational leadership (TL), human resource management (HRM) practice and collaborative culture on two aspects of organizational innovation capability namely product and process innovation. The paper has developed a proposal research model and applied Structural Equation Modeling (SEM) to test research hypotheses using data collected from 168 participants in 51 Vietnamese firms. The findings of this study confirm the significant impacts of key organizational factors on firm’s capabilities for product and process innovation. Especially, the empirical findings reveal that TL has a greater impact on process innovation. In contrast, collaborative culture has more significant influence on product innovation. The findings of this study have significantly contributed to increasing the insight of the link between key organizational factors and specific aspects of innovation capability. Moreover, it provides a specific and effective pathway for Vietnamese firms to pursuit and foster each specific aspect of organizational capability for innovation.
The study's aim was to look into the different aspects of strategic competitiveness and how they affect
competitive advantage in the private sector in Iraq's Kurdistan region. The researchers used four Strategic
Competitiveness dimensions to assess the current analysis (Competitive strategies, innovation culture,
managerial ethics, and Innovative Ideas). In order to interpret the current analysis, a quantitative methodology
was used. The technique or process that the researcher is willing to accept in selecting objects for the sample is
referred to as sample design. The research sample was chosen using a random sampling method and was carried
out in various banks. A total of 125 questionnaires were distributed, but only 112 participants completed them
correctly. Competitive strategies as a Strategic Competitiveness dimension has an important and positive impact
on competitive advantage at a 5% level, according to the findings. The findings indicate that the Strategic
Competitiveness dimension of Skills & Competencies has an important and positive impact on competitive
advantage at a 5% stage. The findings show that entrepreneurial thought has an important and positive impact on
the Strategic Competitiveness dimension, with a competitive advantage of 5%. The findings indicate that the
Strategic Competitiveness dimension of Innovative Ideas has an important and positive impact on competitive
advantage at a 5% stage. Furthermore, all beta values are greater than.001. The modified R2 for all models is
quite large (0.693, 0.621, 0.712, and 0.763, respectively), meaning that the models' ability to explain variance in
competitive advantage due to variation in independent variables is quite good. The F-value indicates that the
explanatory variables in the model are jointly statistically important, and the Durbin-Watson (DW) statistics
indicate that the models have autocorrelation.
Introduction
Although substantial generic knowledge about integrated care has been developed, better understanding of the factors that drive behaviour, decision-making, collaboration and governance processes in integrated care networks is needed to take integrated care forward. To gain more insight into these topics and to understand integrated care in more depth, a set of underlying values of integrated care has been developed and defined in this study.
Theory and methods
A systematic literature review was conducted to identify the underlying values of integrated care. Values theory was used as a theoretical framework for the analysis.
Results
This study identified 23 values in the current body of knowledge. The most frequently identified values are ‘collaborative’, ‘co-ordinated’, ‘transparent’, ‘empowering’, ‘comprehensive’, ‘co-produced’ and ‘shared responsibility and accountability’.
Discussion and conclusion
The set of values is presented as a potential basis for a values-driven approach to integrated care. This approach enables better understanding of the behaviours and collaboration in integrated care and may also be used to develop guidance or governance in this area. The practical application of the values and their use at multiple levels is discussed. The consequences of different stakeholder perceptions on the values is explored and an agenda for future research is proposed.
This paper reviews and integrates past research on personal values in work organizations, seeking to portray the role personal values play in shaping the choices and behavior of individuals in work settings. We start by addressing the role of values in the occupational choice people make. We then review research on the relationships of personal values to a variety of behaviors at work. We continue with discussing the multiple paths through which managers’ values affect the organizations and its members. In the last section, we address the interplay between organizational levels, and discuss the congruency between personal and organizational values and its implications for organizations and their employees. Together, the research reviewed indicates how the broadness and stability of values make them an important predictor of behavior at various levels of the organization. We end by discussing directions for future research on values in organizations.
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The Environmental Management Systems (EMSs) are voluntary tools with which companies manage the environmental aspects of their operations. In Europe, the most widespread are the ISO 14001:2015 international standard and the one defined by the European Regulation EMAS (Eco-Management and Audit Scheme). During the last years, while the number of ISO 14001 certified organizations has constantly grown, EMAS registered organizations have been declining. This phenomenon has occurred also in Italy, which accounts for roughly one-fourth of the 4000 European registrations. Only few scholars have explored this phenomenon and the existing relationship between EMAS outcomes and the decision to renew the Registration. Focusing on the Italian context, this paper aims at reducing this gap. The study presents the results of a survey, targeted to Italian EMAS organizations, that through a questionnaire investigates how the Scheme impacts on organizations' operations. Results have been analyzed using Exploratory Factor Analysis (EFA), Cluster Analysis and Binary Logistic Regressions, with the main goal to evaluate whether EMAS perceived benefits are significant in the decision to maintain the registration. Moreover, it explores the existence of significant linkages between organizations' characteristics and their willingness to renew EMAS. Findings show a significant predisposition to renew the registration, especially for small-sized organizations. Conversely, there is a negative link between renewal intentions and the possession of ISO 14001 certification. Finally, perceived benefits gained with EMAS implementation are not constantly significant predictors of the willingness to renew the registration. Despite the negative growth trend, the high levels of willingness to renew EMAS expressed by the respondents confirm the tool as a valuable resource and a solid baseline toward the implementation of more sustainable business models. Additionally, positive outcomes of EMAS such as the maximization of material productivity and energy efficiency, the creation of value from waste and the implementation of standardized environmental indicators may support organizations in the transition toward circular economy.
