Question

2. Discuss the McKinsey's 7 S's and how each of these strategy concepts/dimensions plays into the formation and operation of a real estate brokerage. Provide detailed examples of how different brokerages may make different choices in each of these areas and how those choices may affect their company performance. Write a minimum of 500 words.

Answer 1

MC Kinsey 7s Model     is a tool that analyzes firm’s organizational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives.

In McKinsey model, the seven areas of organization are divided into the ‘soft’ and ‘hard’ areas.

A.Hardareas:-

Strategy:- is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in the market In general, a sound strategy is the one that is clearly helps to achieve competitive advantage and is reinforced by strong vision, mission and values. But it is hard to tell if such strategy is well-aligned with other elements. Think about what sets your company apart from its competitors and what position you want to hold or carve out in your industry. You should also have a clear idea of who your key customer personas are and how you are going to meet their demands/solve their problems/help them reach their goals.

Structure:- It is the way business 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 firm. It is also one of the most visible and easy to change elements of the framework. How is your company divided at an organizational level? What teams are in place, what tasks are they responsible for, and where do these teams crossover? You may find that, as your business grows and you reassess the McKinsey 7S model, that you need to expand your structure to better manage emerging capabilities that were not present when you started the company.

Systems :-are the processes and daily activities and how decisions are made. Systems are the area of the firm that determines how business is done and it should be the main focus for managers during organizational change. processes, procedures, and information systems that support your business. Authority in organizational systems must be clear, and technical systems must be successfully managed and maintained to facilitate the work of the company’s teams.

B.Soft Areas:-

Style :-represents the way the company is managed by top-level managers, how they interact.. In other words, it is the management style of company’s leaders. This element includes both the way in which key managers behave in achieving the organization’s goals and the cultural style of the organization as a whole. Managers may come to you with ideas or initiatives they believe will benefit their staff, though will use internal resources (time, budget etc.) meaning you will have to decide how much to allocate to them so long as they demonstrate a return on investment

Shared Values:- are at the core of McKinsey 7s model. They are the standards that guide employee behavior. The final aspect of the McKinsey 7S model suggests that guiding concepts of the organization should be evident through both its external work and its internal culture. Neglecting your Shared Values puts your company at risk of becoming lost in the crowd of your competition and employees may not feel as personally tied to their roles, leading to decreasing productivity.

Skills:- are the abilities that firm’s employees perform very well. They also include capabilities and competences. Always be aware of the overall capabilities of teams and the specific skill set of team members. You should know what core competencies team members must demonstrate, as well as what attributes may expand a department’s offering (such as experience in an international market for using an industry-leading piece of technology).

Staff;- Number of employees in an organization will need and how they will be recruited, trained, motivated and rewarded. • Style represents the way the company. breakdown of staff in terms of their background, age, gender, and characteristics. Evaluate the teams you have in place and whether they are operating at optimal capacity as well as if they can facilitate professional growth.