A mismatch between an organization's structure and its strategy can lead to inefficiencies, confusion, and a lack of direction. It can result in poor communication, misaligned goals, and a lack of coordination among different departments. This can ultimately lead to a decrease in productivity and profitability.

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McKinsey 7S Framework

To understand your organization's position and the elements that influence its capability to carry through changes, use our McKinsey 7S presentation....

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Strategy – this is your organization's plan for building and maintaining a competitive advantage over its competitors. Structure – this how your company is organized (that is, how departments and teams are structured, including who reports to whom). Systems – the daily activities and procedures that staff use to get the job done. Shared values – these are the core values of the organization, as shown in its corporate culture and general work ethic. They were called "superordinate goals" when the model was first developed. Style – the style of leadership adopted. Staff – the employees and their general capabilities. Skills – the actual skills and competencies of the organization's employees.

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The McKinsey 7S framework contributes to the overall success of an organization by providing a holistic view of the organization. It emphasizes the interconnectivity of seven key elements: Strategy, Structure, Systems, Shared values, Style, Staff, and Skills. By aligning these elements, an organization can achieve its goals more effectively. The framework helps in identifying areas of strength and weakness, facilitating the implementation of change, and maintaining a balance between the elements for sustained competitive advantage.

The key competencies that an organization should focus on developing in its employees include strategic thinking, understanding of the company's structure, proficiency in the systems used for daily activities, alignment with the shared values of the organization, adaptability to the leadership style, and enhancement of their general capabilities and specific skills.

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