An Imagination of Organizations in the Future: Rethinking McKinsey's 7S Model

An Imagination of Organizations in the Future: Rethinking McKinsey's 7S Model

Oya Zincir (Istanbul University, Turkey) and Ayşegül Özbebek Tunç (Istanbul University, Turkey)
DOI: 10.4018/978-1-5225-1656-9.ch006
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Abstract

Organizations try to survive in a hypercompetitive, changing, and unpredictable environment. The form of this survival continuously changes and requires different tools, solutions, dynamics and drivers according to the actual time. Today organizations face with a big paradigm shift, the industrialization of information age. Organizations should find a new form on the basis of the new age requirements. Some authors have suggested some strategic prescriptions harmonized with the actual term such as McKinsey's 7S Model including strategy, structure, systems, skills, staff, style and shared goals. It is considered that there is a gap related to updating and upgrading these formulas by activating some new concepts such as morphing, organizational ambidexterity and so on. In this study, it is aimed to understand the organizations in the future with internal elements and outer changes which would affect them at the edge of the new era by using this model and offer many propositions.
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Introduction

I don't read history. That's in the past. I'm thinking of the future. Henry Ford (Lander, 2014)

Managerial and organizational studies’ aspects have changed through the years and so have organizations. According to the well-known study of Alvin Toffler (1980), three types of societies -based on the concept of waves; each wave pushes the older ones aside- have evolved through first, second and third waves as agricultural, industrial and information ages. First wave is the society after Agrarian Revolution which characterized by the enclosure of common land and the introduction of some technological innovations such as the seed drill. The concepts of this age led to the development of job specialization, complex political structures, non-portable possessions, architecture, and the rise of industry and commerce. Second wave is the society during the Industrial Revolution which characterized by mass production, distribution, consumption, education, recreation and destruction that combines those things with standardization, centralization, concentration, and synchronization. The structure of organization was bureaucracy. Third wave is the Post-Industrial Society characterized by actionable knowledge as a primary resource, demassification, diversity, knowledge based productions and non-linear change. The structure of organization is adhocracy. Based on these developments, organizations have evolved into various types through the ages.

With the 21st century, it has been recognized that new social and technical aspects of work systems, organizational structures, managerial practices, competencies and skills are needed. Some authors (Anderson, 2012; Rifkin, 2011, 2014) define this new age as “Third Industrial Revolution” and explain it as “the industrialization of Information Age”. It can been said that it is the collaboration age; the modern enterprise is already a cyberfactory with the usage of robotics, internet of things and high-automation (Czarniawska, 2012) and high collaboration is very important for organizations and people who work for them.

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