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7'S Model

In order to assess how successful Internet Securities will be, the Seven .Ss・ model is used to evaluate how much the change is implemented with the consideration and integration with strategy, structure, systems, staff, style, skills and superordinate goals.

1.   Strategy

Internet Securities has shifted from a strategy of .growing fast・ to .growing strong・ to cope with the expansion of the company and the increasing competitive environment.  The top management is proactive and understands that if the company don・t build the organizational and business infrastructure that will be needed to manage the volume of business ahead of time, it will need to rush to put it in place when there is operating crisis.  Hence, the plan of action afterwards led to the allocation of the scarce resources to reach its identified goals.

2.   Structure

The structure has been changed from informal to functional structures to cope with the requirement of the strategy.  This includes hiring of experienced management staffs for each functional area, which includes sales, marketing, operations and control.  Operation process is also streamlined for better coordination among functions and geographical divisions.  Regional leaders are hired to assume responsibility for training and coaching country managers and serve as a coordinating link between the country managers and headquarters.

3.   Systems

Systems are developed decentralized but with central control and coordination.  The main systems coverage is to address operational requirements and financial areas.  For example, the basic financial and accounting controls and a formal budgeting process are instituted to align with strategy, business plan, and measure progress towards business goals.  The implementation of the financial information system assists the company to understand more about its weekly sales, including the details of the sales such as what is selling the best, etc.

4.   Staff

Except hiring experienced management staffs, the company also employ local staffs because it is easier, faster and cheaper.  The company offers necessary training to improve the quality of staffs to be consistent with business mission.

5.   Style

The top management are active in systems decision-making.  As the Mueller brothers adopt entrepreneurial leadership, their style is more on product champion.  They are open-minded, delegate, and close liaison with their staffs during the process to facilitate the change.

6.   Skills

The employees are recruited with necessary skills to implement the change, for example, the staffs for the development of technical infrastructure, the set-up of the company in Internet time, etc.

7. Superordinate goals

The whole company is clear about the strategy and the need for the infrastructure change.  There is an atmosphere of cooperation and planning is clearly undertaken to meet business needs.  It shows that employees also support the change as they find that it is much easier to get their work done without the chaos after the change.   

The above analysis shows that Internet Securities considered the Seven .Ss・ with its change and hence, it is likely to be successful.

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