This article provides a detailed response to: How can the McKinsey 7-S Framework be adapted to support organizations in navigating the challenges and opportunities of remote work? For a comprehensive understanding of McKinsey 7-S, we also include relevant case studies for further reading and links to McKinsey 7-S best practice resources.
TLDR Adapting the McKinsey 7-S Framework for remote work involves reevaluating Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff to align with digital transformation and distributed team dynamics, ensuring organizational cohesion and agility.
TABLE OF CONTENTS
Overview Strategy Adaptation for Remote Work Structural Adjustments for Distributed Teams Revamping Systems for Remote Efficiency Cultivating Shared Values in a Remote Environment Enhancing Skills for Remote Work Adapting Leadership Style for Virtual Teams Staffing Considerations for Remote Work Best Practices in McKinsey 7-S McKinsey 7-S Case Studies Related Questions
All Recommended Topics
Before we begin, let's review some important management concepts, as they related to this question.
The McKinsey 7-S Framework, developed in the 1980s by Tom Peters and Robert Waterman, former consultants at McKinsey & Company, has been a staple in guiding organizations through complex changes. This framework consists of seven interdependent factors: Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff, which are categorized into 'hard' elements (Strategy, Structure, Systems) and 'soft' elements (Shared Values, Skills, Style, Staff). In the context of remote work, adapting the 7-S Framework can provide organizations with a comprehensive approach to navigate the challenges and leverage the opportunities presented by this mode of operation.
Remote work necessitates a reevaluation of organizational Strategy to ensure that it aligns with the new mode of operation. This involves reassessing market opportunities, competitive advantages, and customer needs in the context of a distributed workforce. For instance, an organization might shift its focus towards digital products or services that can be delivered remotely. A report by McKinsey & Company highlights the importance of digital transformation in response to the COVID-19 pandemic, indicating that companies accelerating their digital strategies are emerging stronger. To adapt Strategy for remote work, organizations should:
The Structure of an organization, which encompasses how tasks and responsibilities are allocated, must evolve to support remote work effectively. Traditional hierarchical structures may hinder communication and agility in a remote setting. Instead, a more flexible, networked approach can facilitate quicker decision-making and information flow. Deloitte's insights on organizational design for the digital age suggest that companies adopting networked structures are better positioned to respond to changes rapidly. To adapt Structure for remote work, organizations should:
Systems, the processes and procedures that underpin daily operations, must be overhauled to cater to the nuances of remote work. This includes IT infrastructure, communication protocols, and performance management systems. A study by Gartner emphasizes the critical role of technology in enabling remote work, noting that over 80% of company leaders plan to allow employees to work remotely at least part of the time post-pandemic. To adapt Systems for remote work, organizations should:
Shared Values, the core beliefs and principles that guide an organization's behavior, become even more critical in a remote setting. These values help maintain a sense of unity and purpose among dispersed teams. Accenture's research on culture change underscores the importance of aligning organizational culture with new ways of working to drive successful transformation. To cultivate Shared Values in a remote environment, organizations should:
The shift to remote work necessitates a reassessment of the Skills required for employees to be effective in a digital-first environment. This includes digital literacy, self-management, and virtual collaboration skills. According to PwC's Talent Trends report, upskilling employees is a top priority for CEOs globally, with a focus on digital skills to drive growth. To enhance Skills for remote work, organizations should:
Style, or the way leadership is exercised within the organization, must evolve to support and empower remote teams effectively. This involves a shift towards more empathetic, supportive leadership practices that prioritize communication, trust, and employee well-being. Bain & Company's research on leadership highlights the need for leaders to adapt their styles to manage remote teams successfully. To adapt Leadership Style for virtual teams, organizations should:
Finally, Staff, or the workforce composition, must be reconsidered in the context of remote work. This includes flexible staffing models, such as freelancers and remote contractors, to provide agility and access to a broader talent pool. A report by McKinsey & Company on the future of work post-COVID-19 suggests that remote work can expand access to talent while reducing costs. To adapt Staffing considerations for remote work, organizations should:
Adapting the McKinsey 7-S Framework for remote work enables organizations to take a holistic approach to change, ensuring that all aspects of the organization are aligned and optimized for this new way of working. By carefully considering each of the seven elements in the context of remote work, organizations can navigate the challenges and seize the opportunities presented by a distributed workforce, ultimately driving performance and competitive advantage in a digital-first world.
Here are best practices relevant to McKinsey 7-S from the Flevy Marketplace. View all our McKinsey 7-S materials here.
Explore all of our best practices in: McKinsey 7-S
For a practical understanding of McKinsey 7-S, take a look at these case studies.
Telecom Infrastructure Modernization in North America
Scenario: The organization is a mid-sized telecommunications provider in North America facing challenges aligning its strategy, structure, systems, shared values, skills, style, and staff—collectively known as the McKinsey 7-S framework.
Strategic Alignment Initiative for D2C E-Commerce in Health Sector
Scenario: The company, a direct-to-consumer (D2C) e-commerce platform in the health sector, faces misalignment within its McKinsey 7-S framework components.
Strategic Revitalization of Industrial Agriculture Firm
Scenario: The organization is a mid-sized industrial agriculture firm in the Midwest, grappling with misaligned structures and strategies following a period of rapid expansion.
7-S Framework Implementation for a Global Retail Firm
Scenario: A multinational retail organization identifies challenges within its business systems related to the alignment and effectiveness of the McKinsey 7-S Framework - strategy, structure, systems, shared values, skills, style, and staff.
Strategic Revitalization in the Forestry & Paper Products Sector
Scenario: A firm in the forestry and paper products industry is facing operational challenges that are impacting its performance and profitability.
Strategic Overhaul in Aerospace Defense Sector
Scenario: The organization is a mid-sized aerospace defense contractor grappling with outdated organizational structures and misaligned incentives that are impacting its ability to innovate and respond to market changes.
Explore all Flevy Management Case Studies
Here are our additional questions you may be interested in.
This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.
To cite this article, please use:
Source: "How can the McKinsey 7-S Framework be adapted to support organizations in navigating the challenges and opportunities of remote work?," Flevy Management Insights, Joseph Robinson, 2024
Leverage the Experience of Experts.
Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.
Download Immediately and Use.
Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.
Save Time, Effort, and Money.
Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.
Download our FREE Strategy & Transformation Framework Templates
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more. |