Strategic Management Models: 7S Framework, Change Steps, and BSC

Google's Organizational Success: The 7S Framework

Hard Elements of the 7S Model

• Strategy: Google focuses on innovation and diversification, expanding from its original search engine to a wide array of products and services. This approach has solidified its position as a Global Technology Leader.
• Structure: The company adopts a non-traditional hierarchy that promotes open communication and collaboration across teams. This flexible framework encourages employee initiative and the sharing of innovative ideas.
• Systems: Google's operations are underpinned by advanced technological systems designed for efficient workflows and data-driven decision-making. These systems support the management of its diverse services and products. Data-based HR management is a prime example.

Soft Elements of the 7S Model

• Shared Values: At its core, Google emphasizes creativity, openness, and a commitment to excellence. These values are deeply embedded in daily operations and guide internal interactions.
• Style (Leadership): Leadership at Google is inclusive, valuing contributions from employees at all levels. This management approach fosters an environment where experimentation and collaboration are highly encouraged. (Note: Facilities are often designed to resemble children's playgrounds.)
• Staff: Google's workforce is diverse and highly skilled, with a strong emphasis on recruiting top talent. The company offers various programs to support employee development and well-being, leading to high job satisfaction and retention.
• Skills: Employees possess a wide range of competencies, particularly in software engineering, data analysis, and artificial intelligence (AI). Google invests heavily in training and development to ensure its workforce remains at the forefront of technological advancements.

Implementing Organizational Change: 8 Key Steps

These steps outline a successful process for managing significant organizational transformation (Kotter's Model):

1. Create Urgency: Explain falling sales figures and the necessity of adapting to digital trends.
2. Form a Powerful Coalition: Establish a cross-functional team including IT, HR, and marketing leaders.
3. Create a Vision: Define a clear future state, such as the transition "From bricks to clicks."
4. Communicate the Vision: Utilize multiple channels like town halls, newsletters, and the intranet to share the vision widely.
5. Empower Others: Provide necessary digital training and actively remove organizational blockers.
6. Create Short-Term Wins: Launch an e-commerce pilot program successfully in one region.
7. Consolidate Gains: Systematically roll out the successful changes and processes to all stores.
8. Anchor Change: Integrate digital Key Performance Indicators (KPIs) into standard performance metrics.

Measuring Performance: Balanced Scorecard Perspectives

The Balanced Scorecard (BSC) provides a framework for linking strategic objectives to measurable outcomes across four key perspectives: