The McKinsey 7S Framework is a management model developed by well-known business consultants Robert H.

Waterman and Tom Peters in the 19 !s. The model is based on the theory that" #or an organi$ation to per#orm well" these seven elements need to be aligned and mutually rein#orcing. %o" the model can be used to help identi#y what needs to be realigned to improve per#ormance" or to maintain alignment &and per#ormance' during other types o# change. Hence" ( would like to use this model to asses and describe the changes in the Royal mail a#ter the strategic change within an organisation

Strategy %trategy is about key issues #or the #uture o# organisation. (t is the long term direction o# an organisation. The determination o# the long-run goals and ob)ectives o# an enterprise and the adoption o# courses o# an action and the allocation o# resource necessary #or carrying out these goals *l#red +. ,handler &Harvard -usiness %chool'. *ccording to the given case study o# the Royal .ail" two o# important strategy were to need o# modernisation to become the best delivery and marketing mail business in the /0 as it described on the This is supported #rom the 1st paragraph o# point 1 2The .ove toward s privatisation3" 2In 2008 the government through the department of Business, Enterprise and Regulatory Reform (BERR), commissioned a study on the future or Royal Mail y Richard !ooper, and the study found that as a result of ne" technologies the royal m ail had missed out on a potential #$00m of profits over the past year and concluded that Royal Mail needed to modernise urgently%& *nd as a part o# modernisation the other strategy was undertaking one o# the largest trans#ormation programme and #or this in vesting in people was #ound importance as mentioned in 1 st and 4th paragraph o# point no.5 2.oya 6reene7s Trans#ormation Programme3" 2 Royal Mail's aim is to ecome (the est delivery and mar)eting mail usiness in the *+&% ,ccording to Moya -reene, the Roy al Mail is underta)ing one of the largest transformation programmes in the country to modernise every part of our usiness&% (Investing in our people is a )ey part of our strategy% .or us to modernise successfully, our people need to feel valued and recognised&% Structure Traditionally" businesses are structured with divisions" departments and layers" in which the lower layers answer to upper layers. Today" the #lat structure" where the work is done in teams o# specialists" are more common. The idea is to make the organisation more #le8ible and devolve the power by empowering the employees and eliminate the middle management layers &-oyle" 9!!5'. The given case had not clearly mentioned the structure o# the Royal .ail. However" a#ter reading the case" the structure o# the Royal .ail #rom .ay 9!1!" as the highest position was" o# course" the ,:; .oya 6reene. The groups under here were not mention as already said above.

Staff%ta## are personnel categories within the organi$ation" such as engineers" sales persons" etc. /nlike traditional organisations" new leading organisations put more emphasis on hiring the best sta##. They provide their sta## with rigorous training and monitoring support" and give incentive #or their sta## to achieve pro#essional e8cellence. This #orms the basis o# these organisations7 strategy and competitive advantage over their competitors &Purcell and -o8al" 9!!1'. <or any organisation" employment loyalty is very much important in an organisation success. =arious strategies are applied to retain the sta##. *s a trans#ormation programme o# the Royal mail" attention towards employee engagement was given more importance where various lucrative strategy was introduced #or employee. *ccording to 4 th paragraph under point no.5 .oya 6reene7s Trans#ormation Programme" Royal mail managers had an opportunity to earn a bonus. >ikewise" celebrating success and recognition system like ,hairman7s *wards #or :8cellence" >ong service recognition awards" good paid maternity and paternity leave" adopti on leave" pension scheme etc. were agreed as a part o# -usiness Trans#ormation agreement 9!1! with a ,ommunication Workers /nion &,W/'.

% Porter Generic Strategy

>ooking Royal .ail through Porter 6eneric %trategy. *ccording to .ichael Porter &19 !'" there are three ways that companies can achieve competitive advantage. These generic strategies represented the three ways in which an organi$ation could provide its customers with what they wanted at a better price" or more e##ectively than others. :ssentially Porter maintained that companies compete" either on price &cost'" on perceived value &di##erentiation'" or by #ocusing on a very speci#ic customer &market segmentation'. ,ompeting through lower prices or through o##ering more perceived value became a very popular way to think o# competitive advantage. <or many businesspeople" however" these strategies were a bit too general" and they wanted to think about di##erent value and price combinations in more detail. He argues that in order #or a company to achieve this advantage a #irm should adopt one o# the #ollowing strategies?

.igure/ 0orter -eneric 1trategy Cost Leadership

*ccording to Porters theory the cost leadership outlook sees the business achieving the lowest possible cost position in industry. Through the maintenance" 2average3 @uality level the #irm is able to command average prices. The cost leadership strategy requires the sale of a standard or no-frills product (Porter, 1985: 1 ! co"#ined $ith aggressi%e pricing (Porter, 198&: '!( Thus, the strategy in%ol%es "a)ing a fairly standardi*ed product and under-pricing e%ery#ody else (+iechel, 1981#: 181 . However" in the Royal mail case under-pricing could not happened because o# the deteriorating business result announced in 9!1! by .aya 6reen. <or postal service industry like Royal .ail" increasing the volume o# letter was important to recover #rom #inancial crisis" however according to the report" in year 9!1!" volume o# letter delivered was 9AB less than in 9!!4. There#ore in response to such di##icult trading environment price raise was important and in year 9!19" ,:; decided to increase in sta"p price $ith & percent rise for first class and 9 percent for second, respecti%ely(

Differentiation

This strategy allows #irms to achieve competitive advantage by o##ering higher value products than competitors. The emphasis is on segmenting the market and providing highest level o# value to them. Targeting speci#ic segments can be costly" and this must o##set by revenue #rom sales in that segment. (n order to survive" #irms must continuously improve e8isting products to achieve competitive advantage. /ntil 9!!C Royal mail didn7t need a competitive advantage as they were a monopoly" however #rom Danuary 9!!C" -ritish postal market became #ully open to competition. Focus

The strategy #ocuses on a narrowly de#ined segment" geographical location or product. ,ompetitive advantage achieved by e8ploiting that segment. %maller #irms usually practice this type o# strategy. Porter argues that any #irm that #ails to implement one o# these strategies will #all into a category" which re#erred to as 2stuck in the middle3 which can result in e8tremely low levels o# pro#itability. ,ompanies who #ind themselves in this dilemma have two options" either? Try and increase market share or +i##erentiate themselves #rom competitors.

*s a Trans#ormation programme Royal .ail #ocused on cost reduction by cutting C4!! collections at the /07s 114!!! post bo8es and #inal collection time was brought #orward and also in some rural parts o# the country the last post was being picked up as early as nine. These were #ocused #or e##ective time management with cost reduction.

Strategic Drift
,trategic drift, as defined #y -erry .ohnson in /0ploring 1orporate ,trategy 2&&5, is the tendency to de%elop strategies incre"entally on the #asis of historical and cultural influences, $hile failing to )eep pace $ith a changing en%iron"ent( 3n such circu"stances the strategy of the organi*ation gradually drifts a$ay fro" the realities of its en%iron"ent and to$ards an internally deter"ined %ie$ of the $orld of "anage"ent( ,trategic drift occurs $hen a co"pany, especially one that has en4oyed considera#le success, responds far too slo$ly to changes in the e0ternal en%iron"ent and continues $ith the strategy that once ser%ed it %ery $ell( 5oyal "ail has #een co"e through long periods of traditional strategy $hich $as not relati%e changed( 6ut the process tend to create strategic drift after considera#le period of ti"e $here strategies progressi%ely fail to address the strategic position of the organisation and perfor"ance deteriorates (.-erry .ohnson 2&&5 :27! There are four phases in strategic drift8 incre"ental change (phase 1!, strategic drift (phase 2!, flu0 (phase ! and transfor"ational change or death (phase 9!( Phase 1 is characteri*ed #y relati%ely long periods during $hich strategies are either unchanged or change incre"entally( This change is generally in )eeping $ith the en%iron"ent or "ay ha%e slight %ariations around a successful the"e as the co"pany a%oids drifting too far fro" so"e past successes( 3n phase 2 the en%iron"ent gro$s at a faster rate than the fir":s strategies( This "ay occur for se%eral reasons, that is 8 $hile one "ay #e a$are that changes are happening, the e0tent "ay not #e so easily appreciated e0cept in hindsight or as reflected through the financials8 it could also #e that $hile the changes are o#ser%ed they are interpreted in ter"s of the fa"iliar thus resulting in the $rong( 9

Incremental Change: The 5oyal ;ail $as reorganised in the 19 &s and again in the 19'&s( /%entually it #eca"e a pu#lic corporation in 19'9( 5estructuring continued in the 198&s and 199&s, $ith the separate teleco""unications section #eing pri%atised in 1989( 3n 2&&1 the Post <ffice #eca"e a pu#lic li"ited co"pany (P=1!, na"ed 1onsignia > $hich $as replaced #y the 5oyal ;ail -roup Plc in 2&&2 $ith the t$o operating di%isions as 5oyal ;al, deli%ering letters and Parcelforce, deli%ering parcels( Strategic Drift: ?ro" 1 .anuary 2&&', the 5oyal "ail lost its 5& year "onopoly and the 6ritish postal "ar)et #eca"e fully open to co"petition( @fter continues fall in "ail %olu"e go%ern"ent co""issioned an independent re%ie$ of the postal ser%ice in year 2&&8 and the re%ie$ reco""ended pri%atisation of the co"pany( 3n .uly 2&12 <fco" consulted on a sche"e proposed #y 5oyal ;ail to alter its deli%ery o#ligations to allo$ larger postal ite"s to #e left $ith neigh#ours( The report of Aepart"ent of 6usiness, /nterprises and 5egulatory 5efor" (6/55! 2&&8 reco""endation to part pri%atise the co"pany and action to restrain the #allooning costs of the final salary sche"e #y closing the sche"e to e0isting staff, $ho $ere offered a "uch cheaper career a%erage sche"e instead, and their retire"ent age $as raised to '5, #y 1/< @da" 1ro*ier( Transformational change: Transfor"ational progra""e of ne$ly appointed 1/< ;oya -reene:s $as the Phase 9 for 5oyal "ail underta)ing one of the largest transfor"ation( 6y "odernising the style of doing #usiness, #y introducing %arious $ays of e"ployee engage"ent and price shifts, cost reduction "easures( The Cultural Web, de%eloped #y -erry .ohnson and +e%an ,choles in 1992, pro%ides one such approach for loo)ing at and changing organi*ationBs culture( Csing it can e0pose cultural assu"ptions and practices, and set to $or) aligning organi*ational ele"ents $ith one another, and $ith organisation strategy( Elements of the Cultural Web- The 1ultural De# identifies si0 interrelated ele"ents that help to "a)e up $hat .ohnson and ,choles call the Eparadig"E > the pattern or "odel > of the $or) en%iron"ent( 6y analy*ing the factors in each, you can #egin to see the #igger picture of your culture: $hat is $or)ing, $hat isnBt $or)ing, and $hat needs to #e changed( The si0 ele"ents are:

1(

Stories > The past e%ents and people tal)ed a#out inside and outside the co"pany( Dho and $hat the co"pany chooses to i""ortali*e says a great deal a#out $hat it %alues, and percei%es as great #eha%iour(

2( ( 9( 5( '(

Rituals and Routines > The daily #eha%ior and actions of people that signal accepta#le #eha%ior( This deter"ines $hat is e0pected to happen in gi%en situations, and $hat is %alued #y "anage"ent( Symbols > The %isual representations of the co"pany including logos, ho$ plush the offices are, and the for"al or infor"al dress codes( Organizational Structure > This includes #oth the structure defined #y the organi*ation chart, and the un$ritten lines of po$er and influence that indicate $hose contri#utions are "ost %alued( Control Systems > The $ays that the organi*ation is controlled( These include financial syste"s, quality syste"s, and re$ards (including the $ay they are "easured and distri#uted $ithin the organi*ation(! o!er Structures > The poc)ets of real po$er in the co"pany( This "ay in%ol%e one or t$o )ey senior e0ecuti%es, a $hole group of e0ecuti%es, or e%en a depart"ent( The )ey is that these people ha%e the greatest a"ount of influence on decisions, operations, and strategic direction(

These ele"ents are represented graphically as si0 se"i-o%erlapping circles (see ?igure 1 #elo$!, $hich together influence the cultural paradig"(

Cultural Web of Royal "ail Stories -o%ern"ent o$ned postal ser%ices in Cnite +ingdo" of -reat 6ritain /"ploys a#out 19&,&&& staff fro" post"en to local deli%ery office ;aster of Post since 151' Post"aster -eneral $as a#olished and replace $ith the positions of chair"an and chief /0ecuti%e under Post <ffice @ct 19'9 3n 2&&& #eca"e pu#lic li"ited under Postal ,er%ice @ct 2&&& 3n 2&&2 <rganisation adopted na"e 5oyal ;ail -roup Plc 3n ;ay 2&1& appointed ne$ 1hief /0ecuti%e Fa"e, ;oya -reene, the first fe"ale to #e in role, $ho $as also pre%iously chief e0ecuti%e of 1anada Post(

Routines and Rituals Training staff to "odernise ;ayas 6log 5oyal ;ail TG Dee)ly Fe$spaper ?ace to ?ace session ,enior =eadership progra""e t$ice a year

Organisational Structure HierarchicalI;echanisticIPolitical prioritiesITri#al

Control System ?inancial 5eporting I 1ost 5eductionI Professional 5eponsi#ility

o!er Structure- -o%ern"ent IPolitical interest I 1o""unication Dor)ers Cnion (1DCI ?rag"entation #et$een Post"en, 1ler), "anagers and ad"inistrators I Hooper re%ie$ 2&&8I2&1& I 1hief /0ecuti%e, ;aya -reene

Symbol # 5ed Post 6o0 I Post <fficeI Cnifor"sI6ig 3nstitution

The aradigm- Post office ha%e to #e go%ern"ent organisation I Pu#lic ser%ice J Fational 3nstitution I Pri%atisation lead poor 4o# security I ;odernisation create 4o# loss

Transformation Leadership *#ter care#ul reading o# the given case study o# Royal .ail" trans#ormational leadership theory has captured my interest in this particular new ,hie# :8ecutive" .oya 6reene #or directing such a large trans#ormation programme o# Royal mail a#ter long unchanged strategy. The trans#ormation leadership theory was developed by -urns &195 ' and later enhanced by -ass &19 4" 199 ' and #ollowed by various other. The main concept o# the trans#ormational leadership theory is the leader7s ability to motivate the #ollower to accomplish more than what the #ollower planned to accomplish &0rishnan" 9!!4'. Trans#ormational leadership has #our components? ideali$ed in#luence" inspirational motivation" intellectual stimulation" and individuali$ed consideration &-ass" 19 4'. -urns postulated that trans#ormational leaders inspire #ollowers to accomplish more by concentrating on the #ollower7s values and helping the #ollower align these values with the values o# the organi$ation. <urthermore" -urns identi#ied trans#ormational leadership as a relationship in which the leader and the #ollower motivated each other to higher levels which resulted in value system congruence between the leader and the #ollower &0rishnan" 9!!9'.

Inspirational Moti ation! The #oundation o# trans#ormational leadership is the promotion o# consistent vision" mission" and a set o# values to the members. Their vision is so compelling that they know what they want #rom every interaction. Trans#ormational leaders guide #ollowers by providing them with a sense o# meaning and challenge. They work enthusiastically and optimistically to #oster the spirit o# teamwork and commitment. .oya 6reen has been able to motivate and inspire the sta## o# Royal mail by valuing them their contribution" where she has paid tribute to her #rontline employees #or the way they adopting the modernisation changes that she introduced. Intellectual Stimulation! %uch leaders encourage their #ollowers to be innovative and creative. They encourage new ideas #rom their #ollowers and never critici$e them publicly #or the mistakes committed by them. The leaders #ocus on the 2what3 in problems and do not #ocus on the blaming part o# it. They have no hesitation in discarding an old practice set by them i# it is #ound ine##ective. With introducing trans#ormation programme .oya 6reene7s seem to able encourage her sta## to enhance their capability by various learnin g and development programmes and being update through various channels that she introduced like weekly newspaper" Royal .ail T=" e8tranet and intranet. Ideali"ed Influence! They believe in the philosophy that a leader can in#luence #ollowers only when he Eshe practices what heEshe preaches. The leaders act as role models that #ollowers seek to emulate. Here .oya 6reene have seem to #ocus on what she is being aiming to become the best delivery and marketing mail business in the /0. *lso" in#luencing its peo ple by investing on people #or personal development" making a key strategy" and making people #eel valued and recognised. %uch leaders always win the trust and respect o# their #ollowers through their action.

They typically place their #ollowers needs over their own" sacri#ice their personal gains #or them" ad demonstrate high standards o# ethical conduct. The use o# power by such leaders is aimed at in#luencing them to strive #or the common goals o# the organi$ation. Indi iduali"ed Consideration! >eaders act as mentors to their #ollowers and reward them #or creativity and innovation. The #ollowers are treated di##erently according to their talents and knowledge. They are empowered to make decisions and are always provided with the needed support to implement their decisions. Here" .oya 6reene introduced in her trans#ormation programme" a rewarding system like ,hairman7s *wards #or :8cellence" >ong service recognition awards which rewards loyalty. Criticisms of Transformational Leadership Theory

Trans#ormational leadership makes use o# impression management and there#ore lends itsel# to amoral sel#-promotion by leaders The theory is very di##icult to train because it is a combination o# many leadership theories. <ollowers might be manipulated by leaders and there are chances that they lose more than they gain.

#thical Leadership *ccording to the given case study" Royal mail ,:; .oya 6reene seems to be connected with her people through her blog 2.oya 6reene -logs3" through updating about her strategy and vision and about progress o# trans#ormation programme. *ccording to her 15th blog post dated 1 Dan 9!11" describe her leadership ethic" where she has mentioned" meeting as many o# her people has been her top priority" where she is putting her e##ort to spend time in the #ield communicating with her own people trying to help them understand how good they are at what they do. %he has also mentioned the #ront line sta## are the most power#ul ambassadors #or their brand. *ccording to the in#ormation about Royal .ail progress" in Duly 9!19" Royal mail announced increase annual pro#its" also the #inancial report getting positive within A years o# new leadership. Hence these supports the :thical >eadership attribute on .oya 6reene. Ho$ is ethical character de%eloped $ithin a leaderK .alphurs &9!!A' * person grows through action. *n ethical leader is produced with practice. <rank &9!!9' states that ethical leadership #lourishes when one e8amines his or her inner character. (nner character is developed by 2personal trauma" career setbacks" mistakes" and #ailures3 &p. 1'. When a leader is able to e8amine one7s inner sel# during tough times" one is able to grow in character. Paul writes in Romans" 2We re)oice in our su##erings" knowing that su##ering produces endurance" and endurances produces character" and character hope3 &4?1-A" :nglish %tandard'. :thics are developed in the su##ering. The $%& Model of #thical Leadership The A-= .odel o# :thical >eadership is a #ramework that aligns the internal &belie#s and values' with the e8ternal &behaviors and actions' #or the purpose o# advancing the common good. The model was created by ,enter #ounder +r. -ill 6race based on his #ormal leadership research and personal passions around #aith and ethics. *t the ,enter #or :thical >eadership we have #ound that people who want to become leaders who make a di##erence need to embrace an inner )ourney o# integrity and make an outer commitment to the common good. ;ur leadership development approach begins with this inner )ourney. (ndividuals discover and claim their core values" develop a vision #or how the world could be di##erent" #ind their personal voice #or e8pressing their vision. They then move to an outer commitment o# living and behaving in ways that serve the community and advance the common good. They ask" 2leadership #or what purposeF3 The ultimate purpose o# leadership is to shape a #uture that is visionary" inclusive" and enables all members o# society to #ul#ill their needs" dreams and potentials.

&alues' :thical leadership begins with an understanding o# and commitment to our individual core values. -y #irst discovering the values at the core o# our identities" we begin the process o# integrating our uni@ue values with our choice-making on all levels o# our personal and civic lives. &ision' =ision is the ability to #rame our actions G particularly in service to others G within a real picture o# what ought to be. &oice' ,laiming our voice is the process o# articulating our vision to others in an authentic and conv incing way that animates and motivates them to action. &irtue' /nderstanding that we become what we practice" we #oster virtue by practicing virtuous behavior G striving to do what is right and good. (n this way" we develop the character o# virtue. (n particular" virtue stands #or the common good. :thical leaders ask" (!o" are my values, vision and voice in )eeping "ith the common good2&

+r. 6race identi#ied three additional elements that are key to the development o# ethical leadership. Ser ice. %ervice connects =ision to =alues" indicating that when our values are tested and tried through service to others" the latent vision within them is o#ten revealed. (olis. 2Polis3 is the 6reek word #or city" and the root o# the :nglish word" 2politics.3 *s we learn to give voice to our vision in the conte8t o# a public act" we are engaged in the art o# politics. )enewal. *s =oice returns to =alues" the territory o# our work changes to renewal. *s we e8press our voice in multiple ways" we need to break #rom the action on a regular basis to consider i# our actions are congruent with our values and vision.