Comparing Two Change Process Models Applicable At The SME: McKinsey’s 7-s Model And Kotter’s 8-step Change Model

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Question :

College: EDENZ Zealand colleges


Identify, analyse and apply change models and processes to an entity undertaking change.


Identify, analyse and model the role of leaders in resolving cultural and ethical issues within the context of change management in New Zealand businesses.

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Answer :



This study is primarily assigned to simulate a comparative study between two change process models which are liable to implement as a tool of potential transformation at the SME (Small and Medium Enterprises) level. Both of the models are thoroughly exercised in the course of this study and the most effective and efficient model to usher change is recommended based on the apprehensions of research findings. All the studies have been conducted on the premises of a predetermined SME and the performance of the prescribed model has been extensively analyzed in the context of the satisfying capability of the model regarding triple bottom line criteria. 

Task 1  

A) Comparison between TWO Change Process Models applicable at the SME Level

The predetermined change process models taken into account hereby are consequently followed by the framework of the models on The India restaurant, Tuakau, Auckland, which is a celebrated SME. Change process models are devised to facilitate effective transformational possibilities of the process in order to achieve the objectives of the transformation with an imperative and durable impact of change competencies in the organization. The entire concept of change models is focused to encourage the understanding of transformation as a multidimensional entity in order to develop the skill to simulate a strategy of potential transformational change which incorporates people changes and content. These models are usually categorized as: Frameworks and Process models where frameworks enjoy the majority of availability. Though both are equally capable for driving change, process models seem indispensable and leads to transformation. Change frameworks are usually expressed as sorted topics which demand leadership attention to enhance change. They can be considered as a handy manual which guides the agency of information selection and can be utilized as checklists, even, planning tool. For instance, Mckinsey’s 7-S Framework has been extensively discussed hereby. On the other hand, the change process models cite a precise yet dynamic implication of the core elements of an organization and guides the agenda of driving change in a sequential fashion. They can be considered as a roadmap of tasks and Kotter’s 8 Step model change has been elaborated here in order to frame a comparative analogy ( Van der Voet  et al. 2014).

McKinsey’s 7-S Model


This model provides a precise yet frozen approach towards the seven central interconnected elements of the company and altogether specifies certain critical areas demanding leadership reconsideration. The seven elements are as follows:-

  1. Precision      intensive skillful employees are required to put forward the operation.
  2. Knowledgeable      employees with prudent time effective management skills are required.
  3. Uninterrupted      exchange of values and information are required to improve productivity.
  4. Effective      transformational strategies are required to devise by the management in      order to underline the performance.
  5. Task      arrangement needs to be subjected to a uniform order to initiate a time      effective performance (Rosemann & vom      Brocke, 2015).
  6. The      India Restaurant needs to adopt a structurally competent model in order to      improve the performance.
  7. A      systematic implementation of the protocols is needed in order to retain      the prosperity of the organization.

Analysts suggest certain advantages and drawbacks of the McKinsey 7-S Model. Disadvantages highlighted specific areas which require attention of the management during redesign. The key advantages of the model can be summarized as;

  1. This      model serves as a guideline and provides potential agencies of change.
  2. This      model assists the management to identify the essential amendments required      in the model planning.
  3. This      model exercises a sequential command over the task which eventually proves      itself effective in case of enhancing performances.

The drawbacks of the model can also be summarized as;

  1. The      elementary differences are completely ignored during the design of the      model.
  2. There      are certain inherent intricacies in the process which may get in the way      of implementation.
  3. Since      the model is integrated and mutually interactive, the entire model needed      to be amended if any change in the plan requires to get incorporated (Prochaska, 2013).            


Kotter’s 8 Step Change Model

This model is proposed by John Kotter of Harvard University. This model demonstrates dynamic, action-based transformational strategies in order to stimulate growth. The prototypal 8 steps which are needed to be followed during implementation are as follows;

  1. It      is framed to address the short goals of the company to accomplish the      transformational outcomes.
  2. The       ambience of communication  and exchange of services needed to      be smooth
  3. It      requires to generate a sense of urgency within the workforce..
  4. A      committed dedication is required among the personnel.
  5. The      nascent change needed to be permanently followed in order to stimulate      growth.
  6. The      changes are required to be interpreted as per the capability of the      employee.
  7. The      staffs are needed to stay patient in order to perform the tasks      consistently.
  8. The      amendments in the model might cater the vision of the organization and      encourage the pursuit of long-term purposes (Goetsch & Davis, 2014).

Kotter’s 8 Step model requires change to be based on fluidity of the leadership and decision making agencies of the organization. The advantages associated to this model can be summarized as;

  1. It      is easier to conduct the steps prescribed by this model with a concrete      sense of success.
  2. Inter-transitional      smoothness within the tasks supposed to be performed is one of the key      advantages of the model (Cameron & Green,      2015).
  3. The      interface provided by the model seems accountable in cases of accepting      drastic changes and designing substitute strategies.

The successive drawbacks of this model can be summarized as;

  1. All      the steps illustrated hereby are highly precision-intensive in order to      accomplish desired transformational outcomes.
  2. Continuous      revision of the steps can be asserted as a shortcoming on the premises of      time effectiveness. 

B) Explaining one models that helps in the development of the SME.

There are several models that assist in the better findings for the development of small business. The change process models helps in making of framework of the better working of the business. In this case, McKinsey 7S model assists in the development of the business in the India restaurant Tuakau Auckland. This model assist in bring better approach based on the seven factors. In this model there are certain advantage and disadvantage that makes the development of the firm. This model is followed with the exact structure that is made by the management of The India restaurant Tuakau Auckland. This model of management has been developed by Tom Peters and Robert (Patton, Renn, Guido & Quaye, 2016). While carrying out this model theory, it has been based upon the strategic vision. This includes with team, business units and business person of the group. Its framework is formed with sharing of values, style, skills, staff, system, strategy and structure. This 7S model is used as an analyzing tool by the company. In order to monitor and assess there is a changes in the internal areas of the firm. The company can perform well due to the followed theory that is based on the seven elements. The India restaurant Tuakau Auckland needs to refine the seven elements in order to make the better performance of the firm. This model assists in identifying the main factors that are causing the problem in the management.  The exact types of changes required in the company, arises by carrying out the 7S model theory.  This change arises from the leadership, restructure of the company (Cummings & Worley, 2014). There is a huge importance to carry out the 7S model theory in The India restaurant Tuakau Auckland. The 7S model helps has been used in many situations of the organizations. The main uses of this model are as follows:-

a) This model theory helps in determining the best possibilities for implementing the made the strategy by the management. 

b) This model theory helps in making changes that makes in better working of the firm in future aspects.

c) This model makes the better structure of the employees as well as the management.

d) Moreover, this makes in improving and development of the organization. 

This model theory makes in developing the internal factors of the firm. This can be controlled properly by the management of the firm that is The India restaurant Tuakau Auckland. The model is involved with the main seven factors that are based on elements of soft and hard. 

The soft elements includes with the following things:-

A) Staffs or employees

While carrying out the better working of the company, there is a high role played by the employees or the staff members. In The India restaurant Tuakau Auckland, the employees can bring the changes by their better performance in the restaurant zone. The employees can provide the characteristics based on attitude and show their communication skills to communicate the customers at the time of ordering of foods in restaurant.

b) Skills

The skills make huge changes in the development of the firm. Moreover, this increases the core competency and helps in the development of distinctive capacity. The skills could be better achieved by conducting training programs among the workers by the management (Hakansson, 2015). This skills depends on the interpersonal skills, communication skills of the staff members that helps in the better servicing of foods in the restaurant that is Tuakau Auckland.

c) Shared Values

The sharing of values helps in the development of leadership in the firm. These values are shared among the other staff members of the company. These values are shared among the members of The India restaurant Tuakau Auckland. These shared values assist in making the better strategy that makes the business to progress rapidly at the time of facing problems.

d) Style

The styles are other factor that makes the growth of the company. These styles assist in the development of organizational behavior. This style transforms the working of the company in the better designing that could be presentable among the customers. 

The hard elements includes with the following factors. These are as follows:-

a) Structure

The structure includes in the hard elements that states with the activities that are performed by many divisions of The India restaurant Tuakau Auckland. The structure helps in carrying out the mechanisms the company. The systems are formed with the exact coordination and integration of the management (Cook, Tone & Zhu, 2014).  

b) Strategy

            The strategy helps in making the better performance of the business. This helps The India restaurant Tuakau Auckland by making a proper structure that makes in the development of the restaurant.

c) Systems

            The systems are the formal procedures that make to achieve the exact measurement. The system belongs to the whole organization working that makes the better performance of the firm. In this system it includes the staff, management of The India restaurant Tuakau Auckland. 

McKinsey’s 7-S Framework


Figure: 1 McKinsey’s 7-S Framework

Source: (Cook, Tone & Zhu, 2014)


c) Describing the above model theory that helps in the development of the SME. Specify with the triple bottom line criteria.

            From the different model theory, the McKinsey 7 S model has been practiced for the development of business in small medium enterprises (SME). In this model are the better practices that are based on the 7 S factors. These seven factors are stated with soft and hard elements that help in the development of the firm that is The India restaurant Tuakau Auckland. By carrying out both the elements helps in achieving the better performance of the company. In the soft elements, there lies with the style, shared value, skills and staffs This factors helps in the better performance of the firm by implementing the seven factors. Moreover, the 7-S factors helps in changing the organization by using its factors for the betterment of employees and management(Eddy et al. 2014).The India restaurant Tuakau Auckland needs the 7-S factors for serving food among the customers as well as assist in growing of the firm. This change models theory makes the firm for achieving the set goals that helps the company by holding a good position in the competitive market. 

The small medium enterprises assist in enhancing the better performance in the triple bottom line criteria.  In the triple bottom line criteria lies with the exact framework that follows with the financial, environmental and social parts. Mostly all the firm has acquired the triple bottom line planning that makes in creating the better performance. This triple bottom line is introduced by the John in the year of 1994. This factor makes to calculate the profit and loss that happens in the business. Moreover, there are certain challenges that are faced while carrying out the triple bottom line. This problems rises from the measurement made that are made from the ecological and social factors. However, the triple bottom line helps the company to make the longer perspectives and assist in better decisions that are used by the firm in future aspects. The India restaurant situated at Tuakau Auckland helps in achieving the set goal that are used by creating the sustainability of the firm. Moreover, this practices helps in making the business to carry out properly based on the three factors. 

The main two specific factors that are recognized in the better performance of the triple bottom line criteria. These are as follows:-

a) Social Impact

In the social impact, The India restaurant helps in the serving of their special foods among the customers of Auckland. The main points lie with the small business enterprises that make the changes in the market for the development of the new planning. In this area, the required changes need to help in the development of the small medium enterprises in Auckland (Mori & Yamashita, 2015). The social impact helps in the development of the strategy that are based on social and economic condition of market. The India restaurant provides the better servicing of the foods in the Auckland areas.  The management needs to take care of the social aspects properly in order to increase the productivity. Moreover, the firm also performs online service for distributing their foods products across New Zealand. By keeping the social impacts properly helps in making the growth of the firm. This change could be brought forward by the McKinsey 7-S Model theory. By implementing the hard and soft elements helps to mitigate the social impacts. Moreover, the company has made several changes that are based on technology that helps in the change of society. The social position of the firm is the best service provided among the customers. The social impacts can be followed by the customers by the service provided by the company. The main aims of the firms are to change the leadership of management that makes the better working of the firm (Devika, Jafarian & Nourbakhsh, 2014)

b) Financial Impacts

The financial impacts mitigate the company’s development and progress. Moreover, the financial is the main parts for the development of products and services that can be brought by the company's management. In this case, the budget of the firm needs to be calculated properly and revised accordingly at the time of changing of the model. All the members of management plans accordingly keeping intact of the required resources. The India restaurant might focus on the proper financial planning to reduce the crisis of the resources. Moreover, at the time of changes made by the McKinsey 7-S model there are certain lack of the resources takes place. The India restaurant needs to improve their products and service by the better servicing (Govindan, Khodaverdi & Jafarian, 2013). Moreover, the organization needs to focus on earning of huge profit that is required at the time of changes made from the 7-S model theory. 

Triple bottom line


Figure 2: Triple bottom line

Source :(Govindan, Khodaverdi & Jafarian, 2013)



In the light of the above study, the Mckinsey 7-S Framework and Kotter’s 8 Step change model are extensively analyzed by maintaining a comparative attitude. After thoroughly exercising the advantages and the shortcomings of each model, the best model is chosen on the basis of research outcomes and prescribed on the premises of The India restaurant which is located in Auckland. Moreover, an immediate performance-based survey of the recommended model has been conducted in order to specify the efficiency as well as to meet the triple bottom line criteria.