Assessing Change Risk using McKinsey 7S Framework

Test Your Problem Solving Skills

Analysis of Change Risk is Important

Company officers are often involved in making critical decisions about change within a fire department. Not all changes are easily made.

Some changes can be simple such as selecting a new supplier for an eye-wash station. Other changes can be more challenging such as selecting a new piece of firefighting equipment. Often these changes are considered from a purely budgetary standpoint, but other human elements are critical to consider. Will the new piece of equipment be used successfully? Does it challenge procedures, traditions or long held beliefs that firefighters hold? Are we organized in a way that we can implement the change successfully?

The risks associated with change that impacts the workplace that is the most challenging is the one that challenges human resources rather than just capital, infrastructure and equipment, and are key to higher organizational performance and successful change adoption.

How Good Are You at Analyzing Change Risk?

Before taking the assessment, think of a change you wish to bring to the fire department. Formulate it as if you're making this request to your supervisor, such as 'The Fire Department should standardize on a European style of firefighting helmet.', or 'The Fire Department should adopt an SOG to address safety of firefighters at a structure fire'.

With that question in mind, take the assessment below.

Instructions

Note: This assessment tool is designed to demonstrate the use of McKinsey's 7S Framework. The questions are very specific to ones of implementing change and do not apply in all situations. See References at the end of the assessment for further reading.

For each statement, click the button in the column that best describes the change. Please answer them as the way they actually are, rather than how you think it should be, as this will give you the most accurate feedback. You can then adjust your strategy and retake the assessment to see how it impacts your score. You can redo this assessment as many times as you need to. When you are finished, click the "Score my Assessment" button at the bottom.

Rate these statements about a specific change in your fire department

Low Confidence Somewhat Confident Neutral Confident Very Confident
1 A firm plan has been developed to support the change.
2 The change contemplated is supported by a strong vision.
3 Implementation steps and communications are detailed and clear.
4 The change can be implemented within an existing team or internal divison.
5 This change is similar to a previous successful one.
6 There is a standard that the change can be modelled on.
7 The change will be integrated into an existing process or system.
8 A new team or group can be formed to manage the change.
9 The way our fire department is organized can support the change.
10 We have people who have made these types of changes before.
11 We have people with expertise in the area of this change.
12 We have people with complimentary skills to support this change.
13 We have a champion that will promote the change by promoting the vision.
14 Company officers and firefighters are positive about the change.
15 The culture of the fire department will accept this change.
16 We have enough people to make this change.
17 We have people who are trained to deliver the elements of this change.
18 There are perceived rewards from the change involving all stakeholders.
19 Company officers are willing to model their behaviour to support the change.
20 Change in required firefighter behaviour will be achieved.
21 The change is in alignment with the firefighting mission.
Score = 0

Reference:

McKinsey&Company, http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-7-s-framework and presentation.

Strategic Management Insight, https://www.strategicmanagementinsight.com/tools/mckinsey-7s-model-framework.html, Ovidijus Jurevicius | 20.12.2013. The authors of the framework emphasize that all elements must be given equal importance to achieve the best results. This assessment follows that advice. Fire department hierarchy, tradition and culture may have a higher weight when applying this model.

This tool is not validated, but is based on accepted theory to demonstrate core concepts of the McKinsey 7S Framework as applied to fire department change risk.

Score Interpretation

Score Range Advice about your Score
21-35

Risk of failure is high. (Read below to start.)

36-70

Possibility of succeeding is moderate, but there are important risks to be considered. (Read below to start.)

71-105

High possibility of success - but it is important to look for problem areas. (Read below to start.)

Answering these questions should have helped you recognize key elements of considering change risk, based on the scenario you're contemplating.

McKinsey 7s model is a tool that analyzes an organizations design by looking at 7 key internal elements: strategy, skills, structure, systems, staff, style and shared values, in order to identify if they are effectively aligned and allow organizations to achieve their objectives.

McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert Waterman and Julien Philips with a help from Richard Pascale and Anthony G. Athos. Since the introduction, the model remains one of the most popular strategic planning tools. It sought to present an emphasis on human resources, rather than the traditional mass production tangibles of capital, infrastructure and equipment, as a key to higher organizational performance. In this assessment the goal of the model was to show how 7 elements of the fire department can be aligned together to understand change risk. The key point of the model is that all the seven areas are interconnected and a change in one area requires change in the rest of the fire department for it to make successful change.

Figure 1 – McKinsey 7S Framework

McKinsey 7S Framework

 

Below, we outline the 7 elements you can use for each stage of the change process.

Strategy

(Questions 1, 2, 3)

Strategy is a plan developed by a fire department to achieve a sustained change and successfully make change. What does a well-aligned strategy mean in 7s McKinsey model? In general, a sound strategy is the one that’s clearly articulated, is long-term, helps to achieve a change and is reinforced by strong vision, mission and values. But it’s hard to tell if such strategy is well-aligned with other elements when analyzed alone. So the key in the 7s model is not to look at your fire department to find the great strategy, structure, systems and etc. but to look to see if its aligned with other elements. For example, short-term strategy is usually a poor choice but if its aligned with other 6 elements, then it may provide strong results.

Skills

(Questions 10, 11, 12)

Skills are the abilities that firefighters perform very well. They also include capabilities and competences. During organizational change, the question often arises of what skills the fire department will really need to reinforce its new strategy or new structure. When this score is low, it is important to look at leveraging staff interests in developing new skills. Consider looking outside the fire department for new training opportunities to bring these skills in. During new hiring, can you bring these skills in with new staff?

Structure

(Questions 4, 5, 6)

Structure represents the way fire department divisions and units are organized and includes the information of who is accountable to whom. In other words, structure is the organizational chart of the department. It is also one of the most visible elements in the framework. Fire departments have common organizational patterns based on necessity and tradition - but is adhering to that model helping change or inhibiting it?

Systems

(Questions 7, 8, 9)

Systems are the processes and procedures of the fire department, which reveal daily activities and how decisions are made. Systems are the area of the fire department that determines how business is done and it should be the main focus for officers and chiefs during organizational change. Fire department systems can be steeped in tradition and perceived as inflexible - keep in mind that some of the greatest gains in the fire service have come about through change to systems (example: IMS and Health and Safety).

Staff

(Questions 16, 17, 18)

Staff element is concerned with what type and how many staff an organization will need and how they will be recruited, trained, motivated and rewarded. Sometimes a change may involve enhancing existing reward structures or creating new ones in order to increase the score in this particular area. It is important to remember that punitative approaches to staff affect motivation so be wary of simple declarations of "make it so" as this can impact motivation in other areas and affect Shared Values negatively.

Style

(Questions 13, 14, 15)

Style represents the way the fire department is managed at the officer and chief officer level, how they interact, what actions do they take and their symbolic value. In other words, it is the management style of fire department’s leaders. Junior and future leaders of the department often take their que from mimicking their own leaders. Demonstrating positive leadership that embraces the Shared Values of the fire department can keep these emerging leaders on track and in the right direction influencing those around them to the benefit of everyone.

Shared Values

(Questions 19, 20, 21)

Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide staff behavior and actions and thus, are the foundation of every organization. Shared values are a powerful motivator for individuals and groups and when aligned properly can create motivation and momentum. Shared values are leveraged when they are articulated and drawn on in actions and words, particularly by the key leadership within a department. Adopting new values can also help an organization and its individuals achieve greater levels of common purpose and group solidarity.

Key Points

Being a confident and successful agent of change will create many opportunities for you. By using a well-developed model like McKinsey 7s model for analyzing change risk, you can approach the process systematically, and can gain insights to a change's potential challenges with your fire department.

Given the unpredictable nature of change, it's very reassuring to know that, by following a structured analysis, you've used the stengths of your staff and fire department to set that change up for success.