Organization Factors

Together, these factors determine the way in which a Corporation operates. Managers must consider seven factors to be insurance for the successful implementation of a strategy, stressing that each of these factors are interdependent and it should be paid equal attention to each of them, it is said, that all have equal importance although each factor may vary from time to time and influence differently. Reportedly, McKinsey argues that changes in the effectiveness of a company are direct consequence of the interaction of multiple factors, many of which are not obvious or have not been considered in traditional models. The model, therefore, assumes three key ideas: the existence of a multiplicity of factors influencing viability and proper development of an organization (soft skills and hard skills). It is not sufficient identification of this diversity of factors. The most important thing is the combination that is achieved among them for best results.

The schematic form of the model, closer to a network of relationships that a pyramidal structure, determines that none of the factors is a priori more relevant to improve organizational effectiveness. The relative importance of each variable depends on the conditions of time and space. These 7 S are as summarizes them: STRATEGY (strategy) is very important to raise a correct strategy that reflects an accurate assessment of the environment and, in particular, competition. It is, ultimately, the proper action and allocation of resources to achieve the objectives of the company. The difficult thing is not propose strategies, but run them. STRUCTURE (structure) is the organizational structure and relationships of authority and responsibility that occur in it.

From this point of view, the strategy will determine the structure and organizational design will be the facilitator mechanism for the company to achieve its goals. In this way: If the strategy changes, the structure changes; not constituting a stumbling block to the first. SKILLS (skills) are the distinctive capabilities of the company. What Michael Porter would call their core competencies or what the company does best. It is vital that the chosen strategy is consistent with these skills. SHARED VALUES (shared values) is equivalent to the concept of mission and values shared by all members of the company and that translates the strategy into circular targets are joining the organization in the achievement of common objectives. SYSTEMS (systems) are all procedures and processes required to develop the strategy (information systems, systems and processes of production, budgets, controls, etc.). They are also all formal and informal procedures that enable an organization to work. They must be aligned with the strategy and constitute adequate support for their achievement. STYLE (style) is the way in which senior management behaves, and therefore sets the model to follow. The background thesis is that relevant actions, including the symbolic, communicate to each Member of the Organization concerning the priorities and the company’s commitment with the strategy. STAFF (personnel) are people who make up the company and is responsible for implementing the strategy. In this context, the key is that human resources are oriented towards the reference The Art of Japanese Management strategy.

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