Evaluating Organizational Excellence through McKinsey's 7S Framework

The assignment delves into how organizations utilize the McKinsey 7S Framework to align their strategies for enhanced efficiency and effectiveness. It requires students to examine case studies where IT investments correlate with improved productivity and profitability. Furthermore, it explores leadership's role in fostering an ethical culture and managing change towards sustainability. By synthesizing insights from various sources, including empirical research and theoretical models, students will assess the framework’s applicability across different organizational contexts.

Running head: BUSINESS MASTERS
Business Masters
Name of the Student
Name of the University
Author Note

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Executive Summary
This business report highlights the future development of a family owned medical health
services. The organization that is taken into consideration is Royal Health Services. There are
several model used in this report that illustrate their aims and mission statement. The internal and
external business environment of the organization is also highlighted in this report. Mc Kinsey
7S Model is utilized for improving the performance of an organization, aligning the
functionalities of departments with objectives; identify future strategies to enhance productivity
and profitability. The Balanced Scorecard Model is used for assessing financial perspective,
customer perspective, internal business processes and learning and growth that defines
objectives, measures, targets and initiatives. In order to analyze the internal and external
environment of the organization SWOT and PESTLE analysis is considered. The competitor’s
analysis is also carried out so that the probability of their growth and improvement can be
evaluated. Transformational Leadership Theory is uses, Marris’s Managerial Theory and
utilitarian Ethical Theory is also proposed to be utilized for the advancement of the organization.

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Table of Contents
1.0 Introduction................................................................................................................................4
2.0 Discussion..................................................................................................................................5
2.1 Mc Kinsey 7S Model.............................................................................................................5
2.2 Balanced Scorecard Model....................................................................................................9
2.2.1 Implementation of Balanced Scorecard Model............................................................12
2.3 SWOT and PESTLE analysis..............................................................................................15
2.3.1 SWOT Analysis............................................................................................................15
2.3.2 PESTLE Analysis.........................................................................................................17
2.4 Competitors Analysis...........................................................................................................20
2.5 Leadership, Managerial, Ethical theories............................................................................22
2.5.1 Leadership Theory........................................................................................................22
2.5.2 Managerial Theory........................................................................................................23
2.5.3 Ethical Theory..............................................................................................................24
5.0 Recommendations....................................................................................................................24
5.1 Recommendation for change...............................................................................................24
5.2 Recommendation for organizational charts.........................................................................25
5.2.1 Existing organizational chart........................................................................................25
5.2.2 Recommended organizational charts............................................................................26

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4.0 Conclusion...............................................................................................................................27
5.0 Reference and Bibliography....................................................................................................29

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1.0 Introduction
In recent times, the expenditure of national healthcare has risen to 5.3% in the year 2014
and 5.5% by the year 2016 (Cms.gov 2018). In addition to that, the hospital ownership hiked to
86% from 2012 to 2015 (Cms.gov 2018). According to the statistics, 140,000 nation’s physicians
are hospital providers (Cms.gov 2018). However, there are many family owned medical service
providers in the United States and on such family run hospital service is taken into consideration
that is- Royal Health Service. The service is owned by a family man named Nologist and his
wife. Currently, they have only two employees, who are not enough educated in medical field
and thus the organization is currently facing many issues.
This business report will highlight all such issues through different models. All the
advantages and the drawbacks will be identified through those models. Mc Kinsey 7S Model will
be used to identify alignment of the department with the goals that the company has developed,
to enhance the style of the organization and to determine how the goals will be achieved. The
Balanced Scorecard Model will be discussed to set up a vision, mission and objectives along
with the stakeholder analysis that will improve the current business condition. In addition to that,
for analyzing the internal and external environmental factors of Royal Health Service, the model
SWOT and PESTLE will be used. Some leadership, managerial, ethical theories will also be
illustrated so that the current leadership and managerial quality of the concerned person can be
evaluated. Recommendations based on the implemented changes and organizational charts will
also be provided for the betterment of the organization.

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2.0 Discussion
2.1 Mc Kinsey 7S Model
Image 1: Mc Kinsey7S Model
(Source: Singh 2013)
Singh (2013) stated that the model of Mc Kinsey 7S is used to improve the performance
of an organization, aligning all the operational functionalities of each department with the
formulated objectives of the organization, identifying the future strategies to enhance the
productivity and profitability of the company and lastly to find out ways to implement the
identified strategies in a best possible way (Nour and Mouakket 2013). There are seven aspect of
this model that are grouped in two categories- “Hard S” and “Soft S”. Rao and Mandal (2013)
stated that "Hard" elements are easy to define and manage as it a formal way to represent the

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organization’s functionalities. On the other hand, Nour and Mouakket (2013) argued that "Soft"
elements are equally implementing as it represent the effectiveness of the organizational culture.
2.1.1 Shared Values
The core value of Royal Health Services is to provide a quality treatment to all kind of
patient at an affordable cost. The Royal Health Services also have shared value of providing a
great work environment for the staffs and they also intend to incorporate a diverse working
environment. Royal Health Services also formulated the value of professional integrity, training
for skill advancement, following ethics and honesty, delivering treatment value for money, data
management for patient’s details and partnering with other healthcare for mutual benefits and
future success.
2.1.2 Strategy
Alshaher (2013) depicted that setting corporate goals and formulate procedure to
implement the goals defines the strategy. All the administrative people along with the head of the
organization set some required objectives, which is fulfilled through effective communication.
The strategy also comprised of the situation analysis of the company which allow Royal Health
Services to take effective organizational decisions.
2.1.3 Structure
Jurevicius (2013) depict that structure of the organization defines the different position or
department and the work roles among those positions. The CEO or the head of the organization
is Nologist followed by the planning and commissioning committee and Administration. The
administration boards is planned to comprise with all the heads of the available department of
Royal Health Services.

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Unit Head- Nologist
Administration
Head of General Care WardHead of Accident and emergency (A&E)
Head of AnestheticsHead of Sleep StudiesHead of Elderly Services
Head of Ear nose and throat (ENT)
Head of Maternity Care
Head of Diagnostic imaging
Head of Optical solutions
Planning and commissioning committee
Staffs
The structure of Royal Health Services is as follows:
Image 2: Suggested Organizational Structure of Royal Health Services
(Source: Created by Author)

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2.1.4 Systems
The required system used in Royal Health Services are- computer systems, operational
systems, administrative systems, human resources system and budget system. The computer
system is required to store all the data of the patient’s and organization. Marion and Gonzales
(2013) stated that operational system is required to process the day-to-day transactions and
preserving its integrity. Royal Health Services should utilize administrative systems for tracking
fiscal management, procurement activities and human resource. Moreover, through human
resources system, Royal Health Services can manage payrolls, planning the retirement process of
their staffs, storage of employee data and tracking attendance record of the employee. Lastly, the
organization should also implement budget system for effective coordination and allocation of
resources and tracking how much money is spending to accomplish a particular objective.
2.1.5 Staffs
The new members of Royal Health Services will be selected based on their experience
and educational; qualifications. These candidates are selected from reputed medical colleges and
universities. Medical training will be providing to all the members of the Royal Health Services
so that they can enhance their knowledge base and aware of using the new technology and
machines. These staffs will also be provided with job security and proper reward based on their
tenure-period and performance respectively. Candidates will also be selected from different
cultural background in order to formulate a diverse work environment.
2.1.6 Style
Rao and Mandal (2013) highlighted that ‘style’ refers to employee’s shared way of
thinking and behaving with each other and the norm of thought that promotes their
organizational behavior. In case of Royal Health Services, foundation of honesty, capability,

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professional integrity and quality are considered. Royal Health Services also welcomes the
personal growth and innovative ideas that stakeholders are suggested so that they can gain the
support from them also. Royal Health Services also desire to manage and warehouse the data by
using information technology.
2.1.7 Skills
The area of treatment that Royal Health Services are- Primary treatment, Accident and
emergency (A&E), Ear nose and throat (ENT), Diagnostic imaging, Optical solutions,
Anaesthetics, Sleep Studies , Elderly services department and Maternity care. Thus, the staffs
hired for each of the department should have educational knowledge as well as professional
experience in their destined department. Moreover, for handling the IT department, staffs with
database knowledge should be taken into consideration.
2.2 Balanced Scorecard Model

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Image 3: Balance Scorecard Model
(Source: Tjader et al. 2014)
Tjader et al. (2014) stated that marketers considers balance scorecard as a performance
measurement model and the main aim to use this tool is to convert organization’s estimated goals
into action. There are certain factors of this model- financial perspective, customer perspective,
internal business processes and learning and growth.
Date: .. / ..
Objectives Measures Targets Initiatives
Financial To grow the market
share by maximum of
7% in US market
through high
profitability
 The
profitability
will be
measured
quarterly
which should
be 4% at the
 Target of
obtaining
3%
profitabilit
y growth
rate at the
end of
 Regular tracking the
organizations
performance
 Calculating market
share regularly
Customer  To provide
quality treatment
at affordable cost
 Suggest
affordable
medicine after
dismissal of
patients from
health care
 Take regular
news of critical
patients after their
dismissal
 Calculating
number of
patient
returned back
to Royal
health
Services
 Number of
positive
feedback
 Suggest
effective
medical
treatment
and
prescriptio
n according
to their
budget to
minimum
10 patients
a day
 Communicate with
the patients well so
that their actual
problem can be
identified.
 Considering the
patient’s as well as
their family
member’s feedback
to incorporate
suggested changes

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Internal
Business
Processes
 To hire effective
doctors with years
of experience in
their field.
 Training from re-
known medical
experts to the
staffs
 To incorporate
new departments
that is till now
absent in Royal
Health Services
 To buy new
medical
equipment for
accurate
treatment
 To allocate
budget for
adding new
departments
and buying
new medical
equipment
 To generate a
hiring process
for
experienced
doctors
 Formulating
of training
plan for the
staffs
 To sanction
$50,000
per month
for
purchasing
new
machinery
and
building
extensions
 To
conduct
two
training
classes
from
experience
d doctors
 Collaboration with
government so that
they can help Royal
Health to enhance
their presence
 Meeting with
committee members
and governing
bodies to pass the
budget bills
Learning
and growth
 Enhanced
knowledge of the
staffs
 Competitive price
of the treatment
 Targeting low and
high income
people
 Providing family
care
 Number of
retained
employees
 Number of
increase in
patients per
month
 The amount
of
profitability
increase
 To reward
efficient
employee
at the end
of every
month
 3%
profitabilit
y growth
per month
 Developing friendly
environment
 Providing
challenging job roles
to the responsible
staffs
Table 1: Balance Scorecard Model for Royal Health Services
(Source: Created by Author)