Organization Strategy and Change Models

Organization Strategy and Change Models – Part -1

                                        ( The McKinsey 7 S Change - Framework / Model )

Q1- Whats Organization Strategy?

A-Organization strategy is NOT Vision or Aspiration its NOT “we wish we would be Google some day” – NO.

Its supposed to be a clear definition of where the Org is headed.

It should provide clear linkage to the goals of lower levels – people and processes both.

There should be a clear link – Strategy >> Goals >> Performance.

Q2- Whats the best way to set Organizational Goals? Why do most companies see a gap between long term financials forecast and actual performance?

A-Focus on Assumptions not Forecasts. Ensure the CXO’s don’t give in to their direct reports while defining targets.

CXO Direct reports - beg for lower targets for short term goals so that they and their teams realize their variable pays / bonuses.

CXO’s on the other hand like to project tough targets for - long term.

CXO’s in this manner can ensure their own existence - having dangled long term carrots in front of external stakeholders / management boards.

The end result is – short term goals are always over achieved, resulting in payouts to incompetent CXO DR’s .

While the Long term Goals /Strategic Goals are never achieved – highlighting the gap between Strategy Forecast and Actual Performance.

Q3-Why do the Financial forecasts which are usually trend analysis basis past financial performance not on the mark ?

A- The financial forecasts are on the mark in the short term - but not so in the long term as mostly they are created without inputs from Marketing or external environments.

Also in forecasting the accuracy depends on – level of data mining and the assumptions or hypothesis being tested . Which in most cases are understated.

Q4- What are Organization Change Models? Why are they required – when are they to be utilized?

A- Org change models are utilized to bring about – structured and planned positive changes.

The need for change and reasons why these are recommended are as listed below –

1.       Performance / capability / productivity improvement.

2.       Align process and people during an M&A.

3.       To ascertain impact of changes that are yet to occur. ( Tactical / operational in nature )

4.       Determine the success of strategic plan chosen.  ( Strategic in nature )

Watch this space for more - you may write to Rohit Dhankar for further inputs . This blog post and views mentioned there in are the independent views of Rohit Dhankar ( Owner & Principal Consultant - Strategic Leadership LLC ) .