MCKINSEY 7S MODEL
BHP is a multinational mining and resource company that operates globally in a variety of industries, including coal, copper, iron ore, and petroleum. The company faces a number of challenges related to climate change, including regulatory pressure to reduce greenhouse gas emissions, investor and public pressure to adopt more sustainable practices, and the physical impacts of a changing climate on its operations and supply chains.
To address these challenges and transform its global business, BHP could consider using the McKinsey 7S model to assess the alignment of seven key elements within its organisation: strategy, structure, systems, shared values, skills, style, and staff.
To briefly summarise how the McKinsey 7S model could be applied to BHP's climate change challenges in different countries, we can consider the following business unit examples:
- Strategy: BHP's coal mining operations in Australia could review its current business strategy in light of climate change challenges and consider shifts in focus or direction to better align with its sustainability goals.
- Structure: BHP's copper mining operations in Chile could assess its organisational structure and consider changes to how it is structured and managed to better align with its sustainability goals.
- Systems: BHP's iron ore mining operations in Brazil could review its existing systems and processes to identify opportunities for improvement and efficiency, with a focus on reducing the environmental impact of its operations.
- Shared values: BHP's petroleum operations in the United States could work to embed sustainability and climate change considerations into its corporate culture and shared values.
- Skills: BHP's coal mining operations in South Africa could review the skills and competencies of its workforce to ensure that it has the capabilities needed to succeed in a low-carbon future.
- Style: BHP's copper mining operations in Peru could also assess its leadership style and consider changes to better support its sustainability goals.
- Staff: Finally, BHP's iron ore mining operations in China could review its staffing levels and consider changes to its talent management practices to support its sustainability goals.