Determining the Change

Select a change model that you can utilize to review aspects of change activities and actions that have been taken by the company you have chosen. Examples include but are not limited to the 6-box, 7S, and congruence models.
Explain the rationale for selecting the diagnostic model, discover and summarize resistance areas, and make recommendations.

Select a change model you can utilize to review aspects of change activities and actions that have been taken by the company chosen. You are looking at the company's parts and strategies for this analysis, as surmised by your earlier research. It is acknowledged that this information will need to be completed as you are looking at these companies as an outsider. Still, a thoroughly researched paper will give enough data to allow some well-defended assumptions on your part.

When examining change through the lens of your selected change model, think about other courses you have taken such as marketing, accounting, entrepreneurship, or any other courses you have taken at DeVry or another university. Discuss in no less than 1-page of your paper how other disciplines (marketing, accounting, finance, etc.) work with the human resources department to ensure overall success of the change initiative(s) you have identified.

Here's what to do:

Select one change model of your choice to apply to the chosen company. Examples include but are not limited to the 6-box, 7S, and congruence models. Choose the model that best identifies and measures the relevant aspects of the organization's performance.
Apply the data obtained in your research by analyzing the appropriate chosen model. This will allow you to create a diagnosis of where the company is today (as per the criteria of the model).
Identify potential areas of resistance that may occur and at least one strategy to respond to each.
Make recommendations for further actions within the organizations and the rationale chosen for these recommendations.

Full Answer Section

         

Rationale for Selecting the McKinsey 7S Framework

  The McKinsey 7S Framework was chosen for this analysis due to its comprehensive and integrated approach to organizational diagnosis. Unlike models that focus on a single aspect of change, the 7S framework evaluates seven key internal elements—four "hard" elements (Strategy, Structure, Systems) and three "soft" elements (Shared Values, Skills, Staff, and Style)—that must be aligned for an organization to perform effectively. As an external observer, this model allows for a holistic assessment of Netflix's performance, from its concrete business strategy to its more intangible cultural fabric. This is crucial for a company like Netflix, where culture ("Shared Values") is famously central to its success. By examining the interplay between all seven elements, a complete picture of the organization's strengths, weaknesses, and areas of misalignment can be painted, providing a robust foundation for a strategic diagnosis.  

Application of the 7S Framework to Netflix

  Hard Elements:
  • Strategy: Netflix's strategy has undergone a radical transformation over two decades. Initially, the strategy was to disrupt the video rental market by providing DVD rentals through the mail. This evolved into a focus on streaming to disrupt cable television. Today, the strategy has shifted again to become a diversified entertainment company. This involves a heavy investment in original content production, global expansion into new markets, and the recent introduction of advertising-supported subscription tiers and mobile gaming to broaden its revenue streams and market reach.
  • Structure: Netflix’s organizational structure has adapted to support its changing strategy. Initially, it was a relatively flat, centralized organization focused on technology and logistics. As it moved into content production, the structure evolved to include more specialized, vertical silos for content acquisition, production, and marketing, with dedicated teams for different regions and genres. The structure today is more complex and decentralized to manage its vast, multi-billion-dollar content portfolio across a global footprint.
  • Systems: The systems at Netflix are highly data-driven. The company's famous recommendation engine is a key system that drives subscriber engagement. It also uses sophisticated data analytics to inform its content acquisition and production decisions, minimizing risk and maximizing viewership. The system for its unique "Freedom and Responsibility" culture involves a highly transparent system of performance reviews and feedback, as well as a well-documented culture deck that acts as a guide for all employees.

Sample Answer

         

An Analysis of Netflix's Strategic Evolution Using the McKinsey 7S Framework

   

Introduction

  The modern business landscape is defined by constant change, and few companies embody this reality more than Netflix. From its origins as a DVD-by-mail service to its transformation into a global streaming giant and its current evolution into a content production and advertising powerhouse, Netflix has repeatedly redefined its core identity. This paper will apply the McKinsey 7S Framework, a diagnostic change model, to analyze Netflix's strategic evolution. This analysis will provide a comprehensive diagnosis of the company's current state, identify potential areas of resistance to its ongoing changes, and propose strategic recommendations for future success.