Holistic management: The Seven S model

The Seven S guides managers to improve their strategic approach to the business. Get an overview of the framework and tips on how to apply it.

A common adage in the management consulting business is that efficiency and effectiveness are completely different measurements.

An organization can be extremely efficient, getting high productivity from their workforce and producing their product or service with very little waste or churn, yet be totally ineffective in meeting their objectives if, for instance, their product or service is not accepted in the marketplace.

This difference is often distilled to the statement "EFFICIENCY is about doing things right, while EFFECTIVENESS is about doing the right things."

During my training and practicing of Six Sigma for last 2 years, I noted that Six Sigma is primarily focused on improving quality in areas such as manufacturing, sales, and customer service; in other words, on doing things right. It's not a strategic methodology, so it's not equipped to guide managers to examine their overall business model or strategy.

So how do consultants or managers step up a level from process to strategy?

Understanding the Seven S framework's basics
The Seven S approach is a framework that focuses on guiding managers to improving, not just our processes, but our entire strategic approach to the business. The model was originally proposed by Richard Tanner Pascale and Anthony Athos in their book The Art of Japanese Management; McKinsey and Company has adopted the model as the basis of its strategic consulting approach.

Key to the conceptual foundation of this approach is the premise that the enterprise is only effective and competitive when certain elements are optimized. This approach is holistic in the sense that it proposes that the firm must refine all of these elements and bring them into harmony in order to achieve its highest level of effectiveness.

So what are the Seven Ss, and how do they fit together to help consultants and managers improve business performance? Here's a brief walk-through of the attributes of the Seven Ss.

#1. Strategy: The overriding goal or objective that the enterprise wishes to achieve, and the course of action it intends to take to reach that goal. From the viewpoint of IT, the key question here is often about alignment. Are the activities of the IT staff focused on achieving the strategic goals of the organization? Is there a forward-looking IT plan or roadmap that illustrates how the IT function will drive towards to long-term strategic objectives of the firm? Is the CIO involved in strategy formulation or just an implementer?

Every IT professional has experienced situations in which a manager or executive becomes enamored of some technical solution, often sold to her by a sales representative as the "end-all fix", and IT finds itself devoting all its energies to implementing a product that is disconnected from the firm's strategic goals.

#2. Structure: The manner in which the enterprise is organized, and the relationships between the entities, such as departments, field offices, etc. Is the organization authoritarian, like the military, or decentralized or federated? How do internal processes and human resources work together to achieve the goals?

In my consulting experience, I've seen many firms that want to migrate to an e-commerce approach to sales, and yet see e-commerce enablement as a project, rather than as a structural problem that needs to be solved. No matter how great the e-commerce engine an organization builds, if it's internal organization and structure is not modified to adapt to this new channel, it has very little chance of success.

#3. Systems: Not just information systems and infrastructure, but also the processes and the functions that enable the organization to work, such as recruiting, accounting, and procurement.

From e-commerce to data warehousing and knowledge management, and all across the array of processes and systems that companies employ to deliver their products and services, the ability to make the right technology decisions, to optimize processes, and to enhance productivity are make-or-break elements of success.

#4. Staff: The human resources that actually accomplish the work, and the recruiting, incentives, and compensation practices that encourage them to achieve. An organization's ability to attract and retain the best talents and to keep them motivated and productive is key to execution of the enterprises goals. All the strategic innovation in the world cannot compensate for an unmotivated staff or low productivity.

#5. Style: The elusive "corporate culture" is captured here; is the enterprise customer focused and quality driven or focused on maximizing profitability at any cost? Does the enterprise strive to build a cohesive team of its staff, or does the organization view its workforce as a series of interchangeable hands-for-hire?

#6. Skills: The unique competencies that drive competitive advantage. From the "hard" technical skills of designing products and managing projects to the "soft" skills of communication and teamwork, staff capabilities are essential elements of strategic success.

This element also addresses organizational skills: As we've recently learned in the case of General Motors, the ability of an organization to develop products or services that the marketplace values is the differentiating factor in the market battlefield.

#7. Shared Values: The core beliefs and attitudes that drive the enterprise. Values are not the mission of the company--that should be captured in the firm's strategy. Values are about behaviors, taking the form of statements like "we'll never sacrifice customer satisfaction for short term profit" or "we always thank the customer for choosing us".

Applying the Seven S framework
Now that we've outlined the elements of the Seven S framework, the obvious question is: How can I apply this framework in our organization?

As a consultant, I'll start a performance improvement engagement by educating my client on the elements of the framework. Many organizations grow organically and don't think about their activities in this structured and methodical way. By simply exposing organizations to this sort of approach, you can start to ignite new ways of thinking about their strategic development process.

By using this framework to methodically analyze the current state of each of these elements, we can get a holistic view of the enterprise and begin to develop a gap analysis that can guide an improvement plan.

Some firms are very strong in some areas, such as staffing and skills, but lack a common set of shared values and a coherent strategy-development function. Through interviews, observation, and facilitated work sessions, you can pinpoint improvement areas and then prescribe a plan for optimizing those functions.

Seven S is just a conceptual framework; therefore, it doesn't tell us how to fix those areas that require development. By applying your experience, reviewing the ideas found in the literature (such as Good to Great and other business classics), enlisting the insights and suggestions of members of the organization, and applying disciplines like Six Sigma where appropriate, you can help firms apply a consistent approach to strategy development and execution and improve their results and competitive position.

Goodies shine on IT employees

Monday September 28, 10:02 AM

Source: Hindustan Times

New Delhi, Sept. 27 -- Things get better

HCL Tech (HCLTECH.NS : 341.8 +6.35) plans to hire 2,000 by Dec-Jan; considering salary hikes for top performers

Infosys (INFOSYS.BO : 2291.15 +45.85) said it will be starting compensation review for need-based promotion starting Oct

Mahindra Satyam (SATYAM.BO : 121.7 +1.1) will reinstate variable pay across employee levels starting Oct 1

Employers are talking about hiring, salary hikes and promotions after almost a year of cost cutting that involved lay-offs, lower perks and recruitment freezes.

HCL Technologies plans to hire 2,000 people over the next quarter, including some fresh graduates. It has started the process of identifying its top performers for a salary hike. "We plan to hire 2,000 people in the next three to four months," D.K. Srivastava, global HR head for HCL Tech, told Hindustan Times.

"Promotions will continue and we will reward our consistent top performers this year as well," he added, saying the extent will vary between employees, he said.

Infosys Technologies said last week that it would start a compensation review exercise for "need-based promotion" starting October 1, signalling a new employee welfare initiative.

Mahindra Satyam is also trying to rebuild its corporate image and employer brand after the Mahindras took over the corporate fraud-hit Satyam Computer Services, and renamed it.

India Inc on manhunt drive as slump eases

Monday September 28, 07:52 PM Source: Financial Express

Jobs are back and India Inc is witnessing an upsurge of 15 per cent in hiring trend, thanks to the improving economic climate.

However, experts say it is too early to say that the situation has returned back to 'normalcy'.

"We see the movement happening across the sectors and it looks like worst is over. But the current scenario can not be considered as normal but it is better than bad," executive search firm GlobalHunt India professional leader Sunil Goel said.

If everything goes fine then it will take a year to reach to a normal situation, he added.

In last two quarters (January-March and April-June), hiring was almost 0-5 per cent across industries but in current quarter, average hiring has increased 5-15 per cent across industries.

Sectors like telecom, infrastructure, life sciences and energy have witnessed 25-30 per cent rise in hiring in the second quarter against the first quarter of this fiscal.

Meanwhile, IT, retail, banking, consulting, FMCG have seen 8-10 per cent hiring in the September quarter compared to the previous quarter.

"With the economy showing signs of recovery, there is cautious optimism in the job market and going forward, the coming quarters are expected to be better," an industry expert said.

Companies have started executing their new business plans and are expanding. At least people are not losing their jobs and at the same time there are alternate opportunities available for further career progression, experts said.

Meanwhile, a survey by leading job portal Naukri.com has revealed that India Inc's hiring activity has picked up 8 per cent in June and a further 1.3 per cent in July this year.

Besides, the latest employment outlook survey by global staffing services firm Manpower also substantiates the bullishness in the job market, with as much as 25 per cent of the employers showing an intention to recruit people in the next three months of this year.

The survey said that job seekers in finance, insurance, real estate, services, wholesale and retail trade, public administration and education, and construction segments can expect favourable hiring environment.

"The next quarter looks good for those people who have lost their jobs during slowdown. They will always be preferred than college students. Volume may come back in a year's time from current market trends," Goel added.

The optimism in the job market is also visible in the United States. As per a survey by global career transition and coaching firm OI Partners, American firms are looking to re-hire employees they laid off in the past, mainly in the finance and manufacturing sectors.

10 best practices for successful Project Management

The right mix of planning, monitoring and controlling can make the difference in completing a project on time, on budget, and with high quality results. Here are some guidelines to help.

Given the high rate of project failures, you might think that companies would be happy to just have their project finish with some degree of success.

But that's not the case. Despite the odds, organizations expect projects to be completed faster, cheaper, and better. The only way that these objectives can be met is through the use of effective project management processes and techniques.

This list outlines the major phases of managing a project and discusses key steps for each one.

PLANNING
1: Plan the work by utilizing a project definition document
There is a tendency for IT infrastructure projects to shortchange the planning process, with an emphasis on jumping right in and beginning the work. This is a mistake.

The time spent properly planning the project will result in reduced cost and duration and increased quality over the life of the project. The project definition is the primary deliverable from the planning process and describes all aspects of the project at a high level. Once approved by the customer and relevant stakeholders, it becomes the basis for the work to be performed.

For example, in planning an Exchange migration, the project definition should include the following:

• Project overview: Why is the Exchange migration taking place? What are the business drivers? What are the business benefits?
• Objectives: What will be accomplished by the migration? What do you hope to achieve?
• Scope: What features of Exchange will be implemented? Which departments will be converted? What is specifically out of scope?
• Assumptions and risks: What events are you taking for granted (assumptions), and what events are you concerned about? Will the right hardware and infrastructure be in place? Do you have enough storage and network capacity?
• Approach: How will the migration project unfold and proceed?
• Organization: Show the significant roles on the project. Identifying the project manager is easy, but who is the sponsor? It might be the CIO for a project like this. Who is on the project team? Are any of the stakeholders represented?
• Signature page: Ask the sponsor and key stakeholders to approve this document, signifying that they agree on what is planned.
• Initial effort, cost, and duration estimates: These should start as best-guess estimates and then be revised, if necessary, when the workplan is completed.

PROJECT WORKPLAN
2: Create a planning horizon
After the project definition has been prepared, the workplan can be created. The workplan provides the step-by-step instructions for constructing project deliverables and managing the project.

You should use a prior workplan from a similar project as a model, if one exists. If not, build one the old-fashioned way by utilizing a work-breakdown structure and network diagram.

Create a detailed workplan, including assigning resources and estimating the work as far out as you feel comfortable. This is your planning horizon. Past the planning horizon, lay out the project at a higher level, reflecting the increased level of uncertainty.

The planning horizon will move forward as the project progresses. High-level activities that were initially vague need to be defined in more detail as their timeframe gets closer.

PROJECT MANAGEMENT PROCEDURES
3: Define project management procedures up front
The project management procedures outline the resources that will be used to manage the project. This will include sections on how the team will manage issues, scope change, risk, quality, communication, and so on.

It is important to be able to manage the project rigorously and proactively and to ensure that the project team and all stakeholders have a common understanding of how the project will be managed. If common procedures have already been established for your organization, utilize them on your project.

4: Manage the workplan and monitor the schedule and budget
Once the project has been planned sufficiently, execution of the work can begin. In theory, since you already have agreement on your project definition and since your workplan and project management procedures are in place, the only challenge is to execute your plans and processes correctly.

Of course, no project ever proceeds entirely as it was estimated and planned. The challenge is having the rigor and discipline needed to apply your project management skills correctly and proactively.

• Review the workplan on a regular basis to determine how you are progressing in terms of schedule and budget. If your project is small, this may need to be weekly. For larger projects, the frequency might be every two weeks.
• Identify activities that have been completed during the previous time period and update the workplan to show they are finished. Determine whether there are any other activities that should be completed but have not been. After the workplan has been updated, determine whether the project will be completed within the original effort, cost, and duration. If not, determine the critical path and look for ways to accelerate these activities to get you back on track.
• Monitor the budget. Look at the amount of money your project has actually consumed and determine whether your actual spending is more than originally estimated based on the work that has been completed. If so, be proactive. Either work with the team to determine how the remaining work will be completed to hit your original budget or else raise a risk that you may exceed your allocated budget.

5: Look for warning signs
Look for signs that the project may be in trouble. These could include the following:

• A small variance in schedule or budget starts to get bigger, especially early in the project. There is a tendency to think you can make it up, but this is a warning. If the tendencies are not corrected quickly, the impact will be unrecoverable.
• You discover that activities you think have already been completed are still being worked on. For example, users whom you think have been migrated to a new platform are still not.
• You need to rely on unscheduled overtime to hit the deadlines, especially early in the project.
• Team morale starts to decline.
• Deliverable quality or service quality starts to deteriorate. For instance, users start to complain that their converted e-mail folders are not working correctly.
• Quality-control steps, testing activities, and project management time starts to be cut back from the original schedule. A big project, such as an Exchange migration, can affect everyone in your organization. Don't cut back on the activities that ensure the work is done correctly.

If these situations occur, raise visibility through risk management, and put together a plan to proactively ensure that the project stays on track. If you cannot successfully manage through the problems, raise an issue.

MANAGING SCOPE
6: Ensure that the sponsor approves scope-change requests
After the basics of managing the schedule, managing scope is the most important activity required to control a project. Many project failures are not caused by problems with estimating or team skill sets but by the project team working on major and minor deliverables that were not part of the original project definition or business requirements.

Even if you have good scope-management procedures in place, there are still two major areas of scope-change management that must be understood to be successful: understanding who the customer is and scope creep.

In general, the project sponsor is the person funding the project. For infrastructure projects like an Exchange migration, the sponsor might be the CIO or CFO. Although there is usually just one sponsor, a big project can have many stakeholders, or people who are impacted by the project.

Requests for scope changes will most often come from stakeholders--many of whom may be managers in their own right. One manager might want chat services for his or her area. Another might want an exception to the size limits you have placed on mailboxes. It doesn't matter how important a change is to a stakeholder, they can't make scope-change decisions, and they can't give your team the approval to make the change.

In proper scope-change management, the sponsor (or a designate) must give the approval, since they are the only ones who can add funding to cover the changes and know if the project impact is acceptable.

7: Guard against scope creep
Most project managers know to invoke scope-change management procedures if they are asked to add a major new function or a major new deliverable to their project. However, sometimes the project manager doesn't recognize the small scope changes that get added over time.

Scope creep is a term used to define a series of small scope changes that are made to the project without scope-change management procedures being used. With scope creep, a series of small changes--none of which appear to affect the project individually--can accumulate and have a significant overall impact on the project. Many projects fail because of scope creep, and the project manager needs to be diligent in guarding against it.

MANAGING RISK
8: Identify risks up front
When the planning work is occurring, the project team should identify all known risks. For each risk, they should also determine the probability that the risk event will occur and the potential impact on the project.

Those events identified as high-risk should have specific plans put into place to mitigate them so they do not, in fact, occur. Medium risks should be evaluated to see whether they need to be proactively managed. (Low-level risks may be identified as assumptions. That is, there is potential risk involved, but you are "assuming" that the positive outcome is much more probable.)

Some risks are inherent in a complex project that affects every person in the company. Other risks may include not having the right level of expertise, unfamiliarity with the technology, and problems integrating smoothly with existing products or equipment.

9: Continue to assess potential risks throughout the project
Once the project begins, periodically perform an updated risk assessment to determine whether other risks have surfaced that need to be managed.

10: Resolve issues as quickly as possible
Issues are big problems. For instance, in an Exchange migration, the Exchange servers you ordered aren't ready and configured on time. Or perhaps the Windows forest isn't set up correctly and needs to be redesigned. The project manager should manage open issues diligently to ensure that they are being resolved.

If there is no urgency to resolve the issue or if the issue has been active for some time, it may not really be an issue. It may be a potential problem (risk), or it may be an action item that needs to be resolved at some later point. Real issues, by their nature, must be resolved with a sense of urgency.