Application of McKinsey 7S Framework as a Strategic Tool for a Knowledge-Based Organizational Development

Research studies on organizational development (OD) commenced a few decades ago to enhance an organizational effectiveness (OE) through the alignment of its various functions such as strategy, structure, people, rewards, and management. Organizational devolvement is not an independent factor of growth, it includes a complete process of organizational change aimed at organizational excellence. In today's scenario, not only industries are working hard to achieve organizational effectiveness but knowledge-based organizations are also striving to attain OE through the process of OD. However, it is still a challenge to measure the effectiveness of knowledge-based organization (KBO) compared to any production units or industries. McKinsey 7S model is considered as one of the best models to depict how OE can be achieved through interaction of its seven key elements. This study is an attempt to assess the organizational environment and resources management of an ISO 9001:2015 certified KBO using McKinsey 7S model. Data were collected by survey method and assessed to evaluate the status of various identified markers under enablers of developed instruments based on the McKinsey 7S model. After data evaluation, the areas had been identified where the organization is effective and where improvement is required to attain OD through OE markers. Results show that the organization has many strong areas out of 66 contributors under the seven categories of standard McKinsey's 7S model. A need has been felt to improve the OE in terms of flexible working timings, performance analysis system, and motivational strategies.