APPLY MCKINSEY’S 7S FRAMEWORK TO ADJUST THE CURRENT ORGANIZATIONAL STRUCTURE TO FOLLOW NEW STRATEGIC GOALS

 

Phuoc D. Nguyen

 

Abstract

Purpose – The purpose of this paper is to instruct the application of McKinsey’s 7S Framework to adjust the organizational structure follow to new strategic goals.

Design/methodology/approach – The approach to the topic is to outline every element’s relationships of seven elements of McKinsey’s 7S Framework within the organization, use the 7S Questionnaire and 7S Matrix Questionnaire to define and analyze the alignment and gaps of elements of McKinsey’s 7S Framework aims to suggest opportunities for improvement and connect elements to new vision and strategy, this leads restructuring the organizational structure follow to new strategic goals.

Findings – The dialectical relationship between the strategy and the organizational structure, the relationship between organizational structure and implementation of corporate strategy, and factors that affect the choice of organizational structure.

Originality/value – Apply McKinsey’s 7S Framework to adjust the organizational structure follow to new strategic goals. This paper may be valuable to any organizations and businesses, strategists, organization development professionals, and business leaders.

Keywords – McKinsey’s 7S Framework, organizational structure, strategic goals, restructuring, re-engineering, corporate strategy, organizational design, organizational change, IT systems, shared values, core values, corporate/team culture, management/leadership style, management systems.

Paper type – Viewpoint paper

 

 

Introduction

The organizational structure is always followed to vision, mission, and strategic goals. Dynamic organizations have always surveyed market conditions, potential needs and demands, and business environment change to suggest new vision, mission, and strategic goals. These changes lead restructuring organizational structure to support a new vision and mission to achieve strategic goals. McKinsey’s 7S Framework includes seven elements of shared values, strategy, structure, systems, staff, style, and skills that align with each other and aim to change the organization and achieve organizational effectiveness. When one of the seven elements change, this affect all other elements. Intangible elements of shared values, staff, skills, and style must affect elements of structure, strategy, and systems. Hence, restructuring the organizational structure will create appropriate management systems aimed at following a new strategy. In contrast, elements of structure, strategy, and systems that have also affected core values, corporate culture, staff, and skills to change corporate culture, review core values, plan human resources, and train new skills aim to supplement capabilities to new positions to achieve strategic goals. The seven elements have a close relationship and interact with each other to follow new strategic goals. Therefore, McKinsey’s 7S Framework supports leaders who apply this model to adjust the current organizational structure to follow new strategic goals.

 

Create the Harmony in the Organization

How do the organizations focus on which 7S Model’s elements to achieve strategic goals? This is a question that has been raised so many times and there are many different answers. Some look for internal elements, others focus on external elements, others like to combine the two, and others look for similarities between different elements in the organization. In turn, the problem lies in the study of the elements.

“The 7-S model posits that organizations must be approached holistically in order to be understood; organizational elements (the 7-Ss) must be in alignment with each other for the organization to succeed, and organizations must fit or align with the external environment.” (Bartone and Wells, 2009, p. 2). “The 7-S model encourages consideration of how well the organization as a whole is aligned with the larger external environment. This question is particularly relevant to the structure and strategy of the organization.” (Bartone and Wells, 2009, p. 13).

The McKinsey 7-S Framework ensures that all parts of the organization work in harmony (Mindtools 2016). The purpose of the 7S Model is to create the harmony of internal elements aimed at achieving organizational effectiveness including organizational design, strategy implementation, and organizational change effectiveness.

“The McKinsey 7-S model involves seven interdependent factors which are categorized as either ‘hard’ or ‘soft’ elements:

 

Hard Elements	Soft Elements
Strategy Structure Systems	Shared Values Skills Style Staff

 

‘Hard’ elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems.

‘Soft’ elements, on the other hand, can be more difficult to describe and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.

The 7S McKinsey model consists of seven independent elements which are divided into two categories: the hard elements and the soft elements. Hard elements (strategy, structure, system) are easily recognized and can be directly influenced by management such as strategy, organization chart, reporting system, information system, and business processes. In contrast, soft elements (value sharing, skills, style, staff) are often not easy to describe, they are invisible and often influenced by corporate culture. However, the soft factor is as important as the organization’s ability to operate its activities successfully.” (Mindtools 2016).

Take a look at each of the individual elements as follows:

Strategy: “It is important for a leader to use his emotional intelligence and be flexible and apply the right strategy at the right time.” (Singh, 2013, p. 44). The plan helps to keep and build competitive advantages.

Structure: “Organizational structure should encourage open communication across all levels which allows for self-correction and group problem-solving.” (Singh, 2013, p. 44). Identify the company’s organization mode and the reporting system.

Systems: “A leader’s role is to simplify and modernize the processes by innovation and use of new technology to make the decision-making process quicker.” (Singh, 2013, p. 44). Systems include daily activities as well as the procedures that employees must take to complete their work.

Shared values: “This is a set of traits, behaviors, and characteristics that the organization believes in”.  (Singh, 2013, p. 44). The core values of a company are demonstrated by its corporate culture and business ethics.

Style: “Today a leader has to change the style to a more open, innovative, and friendly environment with fewer hierarchies and smaller chain of command.” (Singh, 2013, p. 45). The style of leadership of leaders and managers.

Staff: “The leader can even hold workshops and involve the staff to talk about the rumors, their harmful effects on the organization and to their own self and generate ways to resolve them.” (Singh, 2013, p. 45). Staff includes employees and their abilities.

Skills: “A leader committed to open communication may need to teach those skills to people and not only hire good communicators”. (Singh, 2013, p. 45). The true skills and competencies of the staff.

 

7-S Checklist Questions

“Here are some of the questions that you’ll need to explore to help you understand your situation in terms of the 7-S framework. Use them to analyze your current (Point A) situation first, and then repeat the exercise for your proposed situation (Point B).

Strategy:

What is our strategy?

How do we intend to achieve our objectives?

How do we deal with competitive pressure?

How are changes in customer demands dealt with?

How is strategy adjusted for environmental issues?

Structure:

How is the company/team divided?

What is the hierarchy?

How do the various departments coordinate activities?

How do the team members organize and align themselves?

Is decision-making and controlling centralized or decentralized? Is this as it should be, given what we’re doing?

Where are the lines of communication? Explicit and implicit?

Systems:

What are the main systems that run the organization? Consider financial and HR systems as well as communications and document storage.

Where are the controls and how are they monitored and evaluated?

What internal rules and processes does the team use to keep on track?

Shared Values:

What are the core values?

What is the corporate/team culture?

How strong are the values?

What are the fundamental values that the company/team was built on?

Style:

How participative is the management/leadership style?

How effective is that leadership?

Do employees/team members tend to be competitive or cooperative?

Are there real teams functioning within the organization or are they just nominal groups?

Staff:

What positions or specializations are represented within the team?

What positions need to be filled?

Are there gaps in required competencies?

Skills:

What are the strongest skills represented within the company/team?

Are there any skills gaps?

What is the company/team known for doing well?

Do the current employees/team members have the ability to do the job?

How are skills monitored and assessed?” (Mindtools 2016).

 

7-S Matrix Questions

“Using the information you have gathered, now examine where there are gaps and inconsistencies between elements. Remember you can use this to look at either your current or your desired organization.

• Start with your Shared Values: Are they consistent with your structure, strategy, and systems? If not, what needs to change?
• Then look at the hard elements. How well does each one support the others? Identify where changes need to be made.
• Next, look at the other soft elements. Do they support the desired hard elements? Do they support one another? If not, what needs to change?

As you adjust and align the elements, you’ll need to use an iterative (and often time-consuming) process of making adjustments, and then re-analyzing how that impacts other elements and their alignment. The end result of better performance will be worth it.” (Mindtools 2016).

 

Reasons for Adjusting the Organizational Structure

The strategic managers who share the same viewpoints, emphasize the importance of reorganizing the management system in line with the new strategy. The strategic change will lead to changes in the way CEOs organize their business. The strategic goals that define the organizational structure of corporate management, in particular, are one of the conditions required to implement the multidisciplinary business diversification strategy that requires a change in the organizational structure.

Pollitt (2005) suggests a strategic leader’s three pillars of development including “The first pillar is represented by the need to develop deep technical competence in one’s professional discipline… The second pillar requires the development of both intellectual agility and confidence to approach problems from unexplored angles… The third pillar is an even more intangible activity.” (pp. 34-35). The changing business environment leads to the change of appropriate strategic goals, but it also directly affects the organizational structure that forces organizational structure to change.

The organizational structure also binds how resources are allocated to achieve strategic goals. The specific organizational structure will specify how the resources will be allocated in a specific way. If a business has to operate in a narrow market to a larger market and it retains the same old organizational structure, it will dominate the old-fashioned allocation of resources that is not suitable for the new location.

Keidel (1994) indicates “Restructuring amounts to manipulating units represented by the organization chart; re-engineering involves revising organizational processes; and rethinking is concerned with the way in which organizational issues and decisions are patterned.” (p. 13). The organizational structure also defines how the resources are integrated into the business during the execution of the corporate strategy. A sound organizational structure facilitates a rational combination of resources, facilitates the achievement of strategic goals with high efficiency, and vice versa which will make it difficult to achieve the strategic goals.

The organizational structure of the business in general and the organizational structure of the management system, in particular, are the necessary conditions for the implementation of the strategic goals. If the business is going to do business in many branches or if it is doing business in few types of services, it will switch to doing business in many types of services or if the businesses expand or narrow the market, it has to re-examine whether the old organizational structure is still relevant or has changed and can and should be changed.

Ackermann and Eden (2011) propose “A vision provides the motivation to do things but little help with how to decide and behave in relation to specific issues. An outcome of strategy making is to change the way in which decision-makers make sense of their role and the things that are going on around them. A strategy will provide them with new ways of thinking about their world, new ways of doing things – a new ‘recipe’ or guidebook that can link the vision to action.” (p. 40). The changing business environment not only leads to changes in corporate strategy but also affects the organizational structure. However, the impact of changes in organizational structure depends not only on the degree of volatility in the business environment but also on the organizational structure of the business itself. Therefore, during implementing the strategy, businesses have to reconsider their organizational structure and adjust it accordingly.

 

The Role of Organizational Structure

The strategy can only be implemented through organizational structure, so after developing the strategy for the company the strategic managers need to implement immediately the next step which is to redesign the organizational structure.

The value-creating activities of each member of an organization will be meaningful unless there is an organizational structure that attaches people to the task and connects the activities of the people of the same department or different departments. Every single function within an organization needs to develop a differentiation capacity through a value-creation activity that increases efficiency, quality, innovation, and customer responsiveness. As such, every function that needs to be in an organizational structure must be designed so that it can specialize, develop skills, and achieve higher productivity. However, as functions become more specialized, each department often pursues its objectives blindly, losing the ability to see the demand for communication and coordinate with other functions.

Organizational structure is a means by which managers can coordinate activities between these functions or different departments to fully exploit their skills and competencies. To benefit from the resonance between parts managers must establish design mechanisms that allow each department to communicate and share their skills and knowledge. Our goal in this section is to look at the basic blocks of organizational structure to understand how to direct human behaviors, functions, and divisions.

The Dialectical Relationship Between the Strategy and the Organizational Structure

It is now generally accepted that strategy and organizational structure are two inseparable aspects of managing the organization. The successful strategy implementation depends on how the activities of the organization are organized and coordinated, they have depended on an appropriate organizational structure.

There is a cyclical causal relationship between the strategy and the organizational structure. When a new strategy is planned there will be new management methods, and if this is not taken into account, then the performance of the business will be decreased. Declining performance is a sign that requires an organizational structure change to improve the performance of the business aims to achieve strategic goals.

During the implementation of the strategy the company cannot wait until its performance declines to adjust the organizational structure, it is necessary to determine whether or not the organizational structure needs to adjust in what scope and extent. The relationship between organizational structure and strategy shows the organizational structure must be in line with the strategy. Additionally, the organizational structure is designed or modified to facilitate the achievement of the strategic goals of the defined period.

Adjustments in strategy often require changes in the way the organizational structure is designed for two main reasons. First, the organizational structure constrains how goals and policies will be set. Examples of goals and policies are usually established based on product groups in an organization. The structural form suggests that the development of goals and policies can have a dramatic impact on all other strategic activities. Second, changes in strategy require changes in structure due to the constraint structure and resources allocated in the strategy implementation. If a company has a structure based on the customer, then resources will be distributed in that way. Similarly, if the structure of a company is set up in functional business units, the resources will be allocated by functional areas.

If the organizational structure fits the strategy, this leads to successful strategy implementation. However, changes in the structure can only make it easier for strategic implementation efforts, but it cannot make a bad strategy into a good one or make a bad executive into a good one. Therefore, the organizational structure is one of the necessary tools to implement the strategy.

 

The Organizational Structure Influences the Strategy

Hughes, Beatty, and Dinwoodie (2014) define “Strategic influence is how leaders engender commitment to the organization’s strategic direction and learning and are essential to sustaining competitive advantage in contemporary organizations.” (p. 145). It is undeniable that the organizational structure can affect the strategy. The strategy is outlined that it must work well, so if a new strategy requires too many organizational structure changes, it will make the strategy less attractive. In this way, the organizational structure can shape the choice of strategies. However, a more important concern is identifying what types of organizational structure changes are needed to implement new strategies and how these changes can be made.

 

Issues that Need to be Paid Attention During Building or Adjusting the Organizational Structure

There are many different organizational structures, each type of organizational structure which has certain advantages and disadvantages. There is no best organizational structure for a particular strategy or a particular type of company. What suits a company may not be suitable for a similar company, even though successful companies in a particular industry tend to be organized in the same organizational structure. The leaders must analyze, consider, and choose the most suitable organizational structure to achieve strategic goals.

 

Some Manifestations of an Ineffective Organizational Structure

When changing the strategy as well as during the implementation of the strategy, the current organizational structure of a business may become irrelevant and therefore it runs ineffectively. The inefficient organizational structure manifests itself as follows:

An organizational structure has many levels of management: Having many levels of management will lead to the speed of decision making which is slow and it causes bureaucracy. On the other hand, having many levels of management which always involves the use of many employees, leads to high decision-making costs and low decision quality. It should reduce the number of management levels.

Pay too much attention to resolve conflicts between functional departments. This is a disadvantage of the functional structure, particularly when the business establishes many functions. This leads instead of the business focusing on decision-making, coordination, and the allocation of effective resources to meet customer needs, but executives must focus on resolving internal conflicts caused by poor management.

Leaders organize too many meetings and many staff who participate in these meetings. This situation has many causes, but this result shows an ineffective business.

The span of control is inconsequential. A manager should manage an appropriate number of subordinates.

 

Factors Affect the Choice of Organizational Structure

When the current organizational structure is inappropriate a new strategy is planned, it requires restructuring the old organizational structure. There are two directions to restructure the old organizational structure. First, restructure a new organizational structure; second, keep the old structure, the company implements organizational change to match the chosen strategy.

Many factors affect the organizational structure such as environmental factors; business purpose and mission; the business size, technical elements; and qualifications of the management team members. When strategy implementation the company focuses on factors as follows:

Business strategy: leaders accept that strategy and organizational structure are two necessary aspects of managing the organization. When there is a change in strategy, the organizational structure also changes to follow the strategy change.

The size and complexity of the business: the organizational structure is not overly complicated.

 

Technology Affects Organizational Structure

General characteristics of the complexity of technology that is used by businesses may affect the organizational structure. The organizational structure should be restructured to enhance the ability of the business to integrate or react to rapid technological change. Unfortunately, the organizational structure often followed technological needs, causing delays in fully exploiting new technology. Technology companies tend to use: (1) senior managers who have technical knowledge and experience; (2) Managers who plan an investment policy that supports and sustains the company’s leading position in technology; (3) The organizational structure conforms to the technology system and ensures close coordination in the decision-making.

Fast rotation environment: The speed of the environment’s fast rotation has also affected the organizational structure. In a stable business environment, enterprises have a rigid organizational structure in which centralized decision-making with solid guidelines, rules, and regulations can be well managed. In contrast, businesses that have been successful in rapidly changing environmental conditions often have to build an organizational structure in which decentralized decision-making.

 

The attitude of top management: The attitude of top management may also affect the organizational structure. Managers in the traditional way prefer to use traditional organizational structures such as functional departments and they rarely use an organizational structure such as matrices. They also preferred centralized control.

 

The attitude of the staff: When restructuring the organizational structure, it is necessary to consider the staff’s background. Employees who have a high education level that they have preferred an open organizational structure. In contrast, employees who have a low education level have preferred a functional organizational structure.

Areas of operation: The expansion of operation areas or the dispersion that requires the relocation of labor to create a new organizational structure.

Relationship Between Organizational Structure and Implementation of Corporate Strategy

An effective organizational structure creates stability for the company so that it successfully implements strategies and maintains its current competitive advantage while also providing the flexibility needed to develop competitive advantages for future strategies. In other words, the stability of the organizational structure gives the company the ability to manage daily tasks consistently and predictably, while the flexibility of organizational structures provides the opportunity to exploit competitive capabilities and allocate resources to activities that will shape the company’s competitive advantage so that it succeeds in the future. A good organizational structure must allow the company to exploit its current competitive advantage while allowing it to develop new competitive advantages.

Changes in the company’s current strategy or the choice of a new strategy require organizational structure changes.

It is a challenge and difficult to develop an organizational structure that can effectively support the company’s strategy. The uncertainty embedded in causal relationships, the dynamic competitive environment, and the rapidly changing global economy are the main causes of difficulties in the compatibility of organizational structures with strategy.

When elements of an organizational structure are designed in line with other factors, it will promote effective implementation of the strategy. Thus, organizational structure is a decisive part of an effective strategic implementation. The structure of the company determines what to do and how it works for a given strategy. Thus, the organizational structure influences the way managers work and make decisions. By supporting the implementation of the strategy, the organizational structure is related to the process of implementing the tasks of the organization.

 

The Process of Building and Adjusting the Organizational Structure

The appropriate organizational structure ensures effectiveness in the implementation of strategic goals. The appropriate organizational structure could be built and adjusted to follow steps, the 6-step process could be mentioned as follows:

Step 1: clarify strategic goals, mission, corporate strategy, and functional strategies. Determine priority corporate strategy goals, functional strategy goals, corporate strategies, and functional strategies.

Step 2: study the relationship between the activities that have significant strategic importance, the routine activities, and the relationship between them. This will be the basis to determine which activities need to pay attention.

Step 3: select the appropriate organizational structure. This step is based on the analysis of the factors that affect the organizational structure, especially the results of the analysis in step 1 and step 2; based on the base of the principle of concentration or dispersion of power to decide on an appropriate new organizational structure.

Step 4: integrate activities according to the proposed organizational unit. Based on the identified activities for the strategic period the business identifies specific duties.

Step 5: determine (adjust) the functions, duties, and authorities of each functional unit.

Each functional unit must take on very specific functions and duties. Functions and duties are the basic conditions for each functional unit to fulfill its mission. The functions and duties of each functional unit depend on the choice of the organizational structure as well as the principle of decentralization and the determination of the number of functional units in the business. The basic principle is to synthesize the functions and duties of each functional unit that must fulfill the corporate mission.

The authority is a condition for each functional unit to accomplish its mission, so it must be in line with the mission that the functional unit should be accomplished.

Step 6: The coordination between functional units within an organization.

Identify the position of the functional units in the hierarchy. Based on the defined functions, duties, and authorities determine the relationship between the functional units. This coordination must include the duties and define the responsibility for each functional unit.

Describe relationships between functional units by the organization chart. Finally, establish the rules and regulations that the business must pay attention to the operational relationships in the process of directing the implementation of the strategy.

While implementing the strategy the company has not should make major organizational changes unless it is necessary. If there is a change, it may be necessary to restructure the organizational structure so that it also leads to the adjustment of tasks as the above-mentioned.

 

Apply McKinsey’s 7S Framework to Adjust the Current Organizational Structure to Follow New Strategic Goals

Adsavakulchai, Sopajitwattana, and Kanchanasuntorn (2008) state “In change processes, many organizations focus their efforts on the hard S’s, Strategy, Structure, and Systems. They care less for the soft S’s, Skills, Staff, Style, and Shared Values. The most successful companies work hard at these soft S’s. The soft factors can make or break a successful change process since new structures and strategies are difficult to build upon inappropriate cultures and values… When they are not, the company is not really organized even if its structure looks right. If a 7-S analysis suggests that strategy implementation will be difficult, managers either can search for other strategic options, or go ahead but concentrate special attention on the problems of execution suggested by the framework.” (p. 111). Waterman, Peters, and Phillips (1980) believe that “style, systems, skills, and superordinate goals can be observed directly, even measured–if only they are taken seriously. We think that these variables can be at least as important as strategy and structure in orchestrating major change; indeed, that they are almost critical for achieving necessary, or desirable, change.” (p. 25). McGee and Molloy (2003) Important considerations when developing an organization design. As executives lead redesigns there are some critical things to think about and do. Start with a statement of strategic intent, and determine the high-level organizational boundaries that support the strategic intent, where drawing boundaries is critical to strategy execution, including integrating mechanisms to ensure that the right dialogue occurs among groups, while organization redesign is not about a ‘silver bullet’ or a quick fix, it can generate quick results, organization design is more than moving the boxes, poor executive performance is often blamed for poor design.

Leaders who receive answer results from 7S checklist questions from leaders and senior managers that they should assess results as follows:

Strategy: Results of marketing research on changes in customer demands that they will combine with environmental issues to determine strategy intent to adjust aims to accomplish and achieve strategic goals and business objectives; define the company’s resources and capabilities to implement new strategy; define organization’s distinct, define competitive pressure, advantages, and competencies to compete with competitors, analyze market conditions change to adapt it appropriately.

Structure: Define types of organizational structure; determine whether or not this structure fits new strategic intent; define the activities coordination between functional departments, business processes, divisions, subsidiaries, and business units; review the alignment of employees to achieve strategic goals and business objectives; define authorities to make decisions in organizational structure and business processes; define formal and informal communication channels; find out issues of business communication, management communication, and leadership communication.

Systems: Define management systems and information systems that drive the organization; define management control, management systems control, business processes control, financial control, and behavior control; define business processes, procedures, rules, regulations, and policies in management systems.

Shared Values: Define a future state vision of the organization to establish a new mission, set strategic goals, and plan milestones to achieve new strategic goals; define core and fundamental values and values’ strengths from corporate culture.

Style: Define leader’s and senior managers’ management/leadership style; assess leadership effectiveness; select management/leadership styles that fit the corporate culture and core values; assess teamwork; classify employees’ competitiveness, collaborative, and cooperative; assess reward policy to employees’ behavior, tasks, and performance.

Staff: Define all current positions, determine positions that need to be filled; analyze gaps in resources and required capabilities for current positions define required competencies for new and current positions, meet the staffing needs; project training plan to train required competencies; project resources attribution plan.

Skills: Analyze skill and capabilities gaps of leaders, managers, and employees; project training programs to fill skill and capabilities gaps for leaders, managers, and employees.

After defining, determining, and analyzing gaps in elements of Staff and Skills, then we define inconsistencies between seven elements to define the current organization and plan the future desired organization which leads to improvement and action plans including a revised organizational structure to follow new strategic goals. Additionally, these assessment results show alignment, conflicts, support, strengths, and weaknesses which are found from seven elements that aim to create alignment and support further, enhance strengths, and improve weaknesses.

Establish measurement indicators to measure management and leadership style, management systems, information systems, and employees’ skills and capabilities. Compare the current state and future desired state to analyze gaps and suggest an action plan to fill gaps.

Review shared values, core values, and corporate culture and compare them to a new vision, mission, corporate strategy, current organizational structure, business processes, and current management systems and information systems. If not, based on a new vision to change corporate culture, review core values followed to change corporate culture which is compatible with a new vision, mission, and corporate strategy. Furthermore, comparing the current organizational structure with the changed corporate culture, revised core values, new vision, mission, and corporate strategy to restructure the current organizational structure, leads to the change in business processes, current management systems, and information systems that follow the new organizational structure. Additionally, based on a new vision, mission, and corporate strategy; new organizational structure, business processes re-engineering, and new management systems and information systems leaders who analyze new business processes and tasks to plan human resources to suggest new positions and implement the recruitment and training programs and establish a knowledge management system to fulfill new strategic goals and business objectives.

Look at the new strategy, structure, and systems to assess whether or not they support soft elements of shared values, skills, style, and staff. If elements of strategy, structure, and systems have not supported elements of shared values, skills, style, and staff.

 

Conclusion

Business leaders who apply the 7S Model to create harmony in the organization. When leaders gather information from the 7S questionnaire and 7S matrix questionnaire, they receive the results of gaps analysis and assessment of seven elements from the 7S Model, they understand the dialectical relationship between the strategy and the organizational structure, factors that affect the choice of organizational structure, Process of building and adjusting the organizational structure, close relationships and correlation between seven elements and interaction between them to restructuring organizational structure to follow new strategic goals. One of the major challenges to restructuring an organization is to follow new strategic goals which are designed types of organizational structure to effectively influence elements aims to follow strategic goals.

 

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