explanation of the 7

7
Explanation of the 7-S Framework of McKinsey. Q.What is the 7-S Framework? Description. Answers:- The 7-S Framework of McKinsey is a management model that describes 7 factors to organize a company in an holistic and effective way. Together these factors determine the way in which a corporation operates. Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small. They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time. Origin of the 7-S Framework. History The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981. They had been investigating how Japanese industry had been so successful. At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of these four authors in 1978. It appeared also in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy company McKinsey. Since then it is known as their 7-S model. The meaning of the 7 Ss Shared Values (also called Superordinate Goals). The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes. Compare: Strategic Intent Strategy Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers.

Upload: saurabh

Post on 19-Nov-2014

111 views

Category:

Documents


6 download

TRANSCRIPT

Page 1: Explanation of the 7

Explanation of the 7-S Framework of McKinsey.

Q.What is the 7-S Framework? Description.Answers:- The 7-S Framework of McKinsey is a management model that describes 7 factors to organize a company in an holistic and effective way. Together these factors determine the way in which a corporation operates. Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small. They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time. Origin of the 7-S Framework. HistoryThe 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981. They had been investigating how Japanese industry had been so successful. At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of these four authors in 1978. It appeared also in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy company McKinsey. Since then it is known as their 7-S model. The meaning of the 7 Ss Shared Values (also called Superordinate Goals). The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes. Compare: Strategic Intent

StrategyPlans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers. StructureThe way in which the organization's units relate to each other: centralized, functional divisions (top-down); decentralized; a matrix, a network, a holding, etc. SystemsThe procedures, processes and routines that characterize how the work should be done: financial systems; recruiting, promotion and performance appraisal systems; information systems. StaffNumbers and types of personnel within the organization. Style

Page 2: Explanation of the 7

Cultural style of the organization and how key managers behave in achieving the organization's goals. Compare: Management Styles. SkillsDistinctive capabilities of personnel or of the organization as a whole. Compare: Core Competences. Strengths of the 7-S Model. Benefits

Diagnostic tool for understanding organizations that are ineffective. Guides organizational change. Combines rational and hard elements with emotional and soft elements. Managers must act on all Ss in parallel and all Ss are interrelated.

Book: Ethan M. Rasiel, Paul N. Friga - The McKinsey Mind: Understanding and Implementing the Problem Solving Tools and Management Techniques - 7S Framework Special Interest Group

7S Framework Forum Recent User Comments

Priyang A - India

The New 7 S "The new 7 S is:1. Superior Stakeholder Satisfaction, 2. Strategic Foretelling, 3. Positioning by Speed, 4. Positioning by Surprise, 5. Shipping rules against competition, 6. Signalling strategic intent, 7. Simultaneous and Sequential mutual trust. Can anyone post more about the new 7 S please!"

Loreen Sona - Zim

7-s Framework "Implementing the 7-S can be challenging especially without the buying in of staff and management. How can these people best be involved for a swift strategic change?"

Dylan - United States

McKinsey 7s Background

"I am doing a presentation on the 7-s framework and was wondering if anyone knew the first time it was successfully implemented and by who? Any other interesting topics are welcomed as well."

Jeff Ngobeni - South Africa

7-S within Government

"It has come to my attention that the 7-S Model is rarely mentioned in its completeness when strategic session or planning is performed at government level. Could it be that government leadership is either unfamiliar with the concept or is it that the model is considered insufficient to address challenges faced by state departments?"

Nor Haniza Mohamad - Malaysia

Measuring the 7 Factors

"I have recently developed an interest in 7S framework. However I am not sure how the factors are measured or quantified so they become meaningful."

Best User CommentsEric - Botswana 7S <> Leadership,

Management"How do you link the 7 s framework with leadership and management. Because when discussing leadership and

Page 3: Explanation of the 7

management most writers say leaders set the major objectives and strategies and managers will transmit and implement this strategies. But what confuses me is that stategy is part of the technical skills( hard skills) which is taken care by managers."

Kristine Penalosa Ilagan - Philippines

Why are Shared Values in the Center of 7's?

"Why are Shared Values in the Center of 7's? Please help me... Thank you..^^"

Caroline - Zimbabwe

7 S model in the post merger phase

"I'm a Masters student looking at the post merger phase of a university. How can I apply the 7 S model in studying the post merger phase? Please assist"

Mahamood - India

Limiting choice of 'S'?

"While reading for my management course, I couldn't help but wonder if the choice of an alphabet limits the scope and skews the interpretation of a model. When formulating a model, how easy / difficult is it to find a word that starts with a particular letter that succinctly describes a concept? To my untrained mind, values like respect, collaboration, openness and others seem to fit in just as well and they don't start with a 'S'. Consider other frameworks out there like the 3C or the 4P in marketing. Did the choice of a particular alphabet leave out important building blocks? I for one can't tell.. "

Deborah Poulsen - Denmark

Hard and Soft S's "The seven S's can be distinguished in hard S's (the top-3: Strategy, Structure and Systems) which are relatively easy to identify and influence. The other 4 S's are more difficult to identify and influence, becuase they are less tangible and more cultural by nature, and are sometimes neglected in major change efforts and mergers. However, they are just as important as the other 3! The 7S model is a constant reminder for that fact."

Sibusiso Thungo - SouthAfrica

Communication "how do you link the 7S Model to problems related to communication in a work place?"

John T. - Greece 7-S Framework "1) We should have in mind that, according to the creators of this Framework, number 7 is not of great importance. It could be 6 or 8 etc. 2) I believe that the strong (another S -!!!-) basis of this Framework is Humans/People of an organization. They can be found behind every one of these "S"s. 3) If the Framework is faced as "open" and "dynamic" and, also, from a holistic perspective, it can be an interesting tool for contemporary organizations."

Vinod - India Applications of the 7-S Framework

"While some models of organizational effectiveness go in and out of fashion, one that has persisted is the McKinsey 7S framework. Developed in the early 1980s

Page 4: Explanation of the 7

by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you:- Improve the performance of a company;- Examine the likely effects of future changes within a company;- Align departments and processes during a merger or acquisition;- Determine how best to implement a proposed strategy."

Carlo - Netherlands

7S Confrontation Matrix

"You can create a 7S Confrontation Matrix with all 7 S-es listed both horizontally and vertically. In the cells or intersections you list the expected impact / potential problem areas / solutions of a strategy or a strategy change.This allows you to make a holistic and structured analysis and prevents you skip major attention areas."

duygu bayrakci - UK

Google and its success with 7S

"Hi I am a MBA student and I need to write an assignment about Google`s success. How can I explain its success with 7S framework? Any ideas?? Thanks a lot."

Tony Gyau - The Netherlands

Does the 7-S Model still holds true today?

"Does the 7-S Model still holds true in today's business environment? Companies are increasing outsourcing their functions, and headquarters are only becoming a virtual company. Look at a company like Nike which has become successful without actually owning the production facilities of their own. Instead they outsourced the production around the world. Where do we stand in today's environment, where companies can be virtual and yet make huge profits, with the 7-S Model. I think the time has come to re-define the framework to suit today's globalisation."

Tharshi - Srilanka 7S model organisational Change Overcoming Barries

"How do companies use the 7s model to overcome their barriers while establishing organizational changes?"

andrew nyamande - Zimbabwe

7-s framework and Leadership Performance

"How to apply the 7-s framework to effective leadership performance?"

Dr. Dexter James - Trinidad

Additional S-es Beyond the 7 S'es

"I was able to utlize the 7S model very effectively to conduct the assessment of the state of the public health

Page 5: Explanation of the 7

and Tobago system for my research thesis. However, the model was limited in coverage of other critical factors that required assessment and was expanded to include three addional S's. These include:- 'Setting' or context within which reform takes place;- the many 'Stakeholders' with their varied roles and interests who play an important role in affecting implementation; and- 'Sequencing', which looks at the manner in which the reforms are implemented. This expansion may also be applicable to other organizations undergoing reorganization and transformation."

Medhavinee - India

Effectiveness of 7 s framework

"The model given in 7S framework is so exhaustive that it includes almost all the aspects of the organisation.- The Superordinate goals provide the clear cut lines on which the employees of the organisation have to work and what the company expects form them.- Structure, systems and strategy provide the roadmap through which the employees can understand how to go about the work.- Staff, styles and skills provide the organisation with a lucid set of HAVEs and HAVE NOTs.All these things put together gives an organisation a proper shape and systematised way of functioning..."

Hammad Amjad - Pakistan

Implementation of 7 S's

"I believe the 7's is very difficult to implement at the ORGANIZATION level. So if we would be able to implement the HARD S's i-e Strategy, Structure and System that would be more then enough for a company to gain competive advantage in the market."

India - Dibya Ranjan Mallick

State Bank Of India & it's success with 7S

"Hi I'm a MBA student. and i need to write an assignment about State Bank Of India success. How can i explain it's success with 7S framework ? Any idea ? 'please assist'"

je juico - phil Most Important S "Among the seven s-es, which is the most important one to be become a successful organization or company?"