QUESTION What were the main sources of information that informed the diagnosis? What is the purpose of The McKinsey 7S Model introduced by the consultant?

Security Management Case

Gamma Security Services provides a wide range of security services which include risk assessment, site security, secure escort services, cash transit with armoured vehicles, technical security systems and prison escort. The company also provides manned guard across a range of sectors including pharmaceuticals, financial services, telecommunications, defence and utilities, to provide protection from theft, vandalism and terrorism.

A new CEO was appointed to Gamma Security Services with the task to grow the business and improve profitability. He familiarizes himself with the current state of affair. He always spends a lot of time meeting people. He brings his previous experience of managing similar business.

He realized a number of clients that were unhappy with the quality of services provided by the company. He afraid that this would lead the company into losing the customers and becoming non-competitive. His initial diagnosis discloses that:

1. Staff shortage: Following 9/11 attack, there has been a sharp increase in demand for site security. The new recruit to be thoroughly vetted and this has reduced the supply of employees.
2. Management Style: The company style was top-down command and control. This was effective on the past but less effective in the tight labour market. It has a negative impact on motivation, performance and employees begin to ignore operating procedures.
3. Management Structure: The number of supervisors has not increased in line with the business. There are times that the supervisor has to replace for the guard and escort.
4. Ineffective management information system: managers located at the headquarters did not have up to date information on operations, so difficult to arrange work schedule.

The CEO discuss his assessment with senior colleagues. One of the suggestions is to explore ways of improving the performance of the existing staff but there was a need for further information. The guard and the escort indicated that they often felt bored on the job which is lacked of any meaningful challenge, no direct supervision. They read newspaper and did puzzles than give full attention to their duties.

A consultant was employed to facilitate this step process. He introduced The McKinsey 7S Model and used interviews to gather more information. Another suggestion for improvement is to take a detailed look at the way organization was structured, the prevailing management style and to consider alternatives that might address the some of the issues uncovered by the initial diagnosis.

QUESTION

1. What were the main sources of information that informed the diagnosis?
2. What is the purpose of The McKinsey 7S Model introduced by the consultant?