mc kinsey 7-s framework
TRANSCRIPT
-
7/30/2019 Mc Kinsey 7-S Framework
1/26
ORGANIZATION
MANAGEMENT
Organizational Design
-
7/30/2019 Mc Kinsey 7-S Framework
2/26
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
3/26
McKinsey 7-S Model
Strategy
Structure
Systems Style
Staff
Skills
Superordinate goals
The hard elements are factual
and easy to identify. They can be
found in strategy statements,
corporate plans, organization
charts, and other documentation
The Hard Ss
-
7/30/2019 Mc Kinsey 7-S Framework
4/26
McKinsey 7-S Model
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
The soft elementsare difficult to
describe since they
are continuously
developing andchanging. They are
highly determined by
the people at work in
the organization.
The Soft Ss
-
7/30/2019 Mc Kinsey 7-S Framework
5/26
7-S ModelThe Hard Ss
Strategy Actions a company plans in response to or in anticipation of
changes in its external environment
Structure Basis for specialization and coordination, influenced
primarily by strategy and by organization size and diversity
Systems Formal and informal procedures that support the strategy
and structure (Systems are more powerful than they are
given credit)
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
6/26
Organizational Structure
Organization Chart
formal reporting relationships
levels in hierarchyspans of control
departmentalization
Systems to facilitate:coordination
communication
integration
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
7/26
Structural Designs
Functional Structure Can adapt functional structure
with horizontal linkages
Divisional Structure
Geographical Structure
Matrix Structure
Horizontal Structure /
Product Line Structure
Hybrid Structure
Chief
Accountant
Budget
Analyst
Vice PresidentFianance
Plant
Superintendent
Maintenance
Superintendent
Vice PresidentManufacturing
Training
Specialist
Benefits
Administrator
DirectorHuman Resources
CEO
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
8/26
Other Organizational Forms
Joint Ventures
Licensing agreements
Strategic Alliances
Consortia
Virtual organizations
Global (transnational) Work Teams
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
9/26
Systems various elements
Communications practice and system
Management reporting system
Approval process Planning/budgeting system
Rewards system including appraisal
Rules
Strategy
Structure
Systems
Style
Staff
Skills Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
10/26
From Tasks to Structure
Tasks define jobs
Jobs define skills required
Skills (and other considerations) definestaff
Over time skills change as staff gains
knowledge and experience, and as technology
and corporate infrastructure mature
Collection of jobs basis for structure
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
11/26
Job design considerations
Do they have the necessary skills andknowledge to fulfill proposed / expanded
job requirements?
What are the needs of the incumbent or
the rest of your workforce in general? Monetary
Growth
Socialization
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
12/26
7-S ModelThe Soft Ss - 1
Style / CultureThe culture of the organization, consisting of Organizational culture: the dominant values, beliefs and
norms which develop over time and become relativelyenduring features of organization life
Management style: what managers do rather than what theysay (where they spend their time and attention, what theyallow, what they reward, etc)
Staff
Skills
Shared values /Superordinate goals
Strategy
Structure
Systems
Style
Staff
Skills Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
13/26
7-S ModelThe Soft Ss - 2
Style / Culture
Staff The people/human resource management ways of shaping
basic management values, processes used to develop
managers, ways of introducing new employees andmanaging careers, socialization processes
Skills Distinctive competencies what the company does best,
ways of developing or shifting competencies
Shared values / Superordinate goals Guiding concepts, fundamental ideas around which a
business is built simple, usually stated at abstract level,have great meaning inside the organization, althoughoutsiders may not see or understand them
Strategy
Structure
Systems
Style
Staff
Skills Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
14/26
Organizational Culture
Culture is to organizations whatpersonality is to individuals
All companies have cultures
Culture by default
Culture by design thoughtful choices
based on values and core beliefs
How does a company consciously createits culture?
Strategy
Structure
Systems
Style
Staff
Skills Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
15/26
From Gray & Larson Project Management:
The Managerial Process
-
7/30/2019 Mc Kinsey 7-S Framework
16/26
Types of Organizational Cultures
Control culturesDrive for predictability and order
Collaboration cultures
Pursue close relationship with customers
Competence culturesPursue excellence and innovation
Cultivation culturesPursue life enrichment for customers and employees
Strategy Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
17/26
Organizational Culture
Observable Evidence: Symbols
Ceremonies
Stories
Behaviors
Language
Dress
Underlying Roots: Values, Assumptions, Beliefs, Attitudes, Feelings
Strategy
Structure
Systems
Style
Staff
Skills Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
18/26
Culture in practice
Conflict management Relationship or interpersonal conflict
Task / process conflict
Functional vs. dysfunctional conflict
Factors: goal incompatibility, limited resources,differences
Powerthe capacity to influence behavior Positional power: rewards/consequences, control
of resources, information and decision control Personal power: expert, referent (based on
identification and admiration)
Politics the use of power to influence decisions
Strategy
Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
19/26
Planning & vs. Setting thebudgeting direction
Organizing & vs. Aligning peoplestaffing
Controlling & vs. Motivating people
problem solving
Management vs. Leadership
Management is about coping with complexity
Leadership is about coping with change
-
7/30/2019 Mc Kinsey 7-S Framework
20/26
Management vs. Leadership
Some managers (but not all) are leaders
Some leaders (but not all) are good managers
A manager gets work done through the efforts
of other people Includes planning, organizing, motivating, and
controlling
A leader creates and realizes a vision
Communicates that vision and moves the
organization toward that vision Strategy Structure
Systems
Style
Staff
Skills
Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
21/26
McKinsey 7-S Model
Strategy
Structure
Systems Style
Staff
Skills Superordinate goals
Effective organizations
achieve a harmony
between these sevenelements; if one
element changes, then
this will affect all the
others
-
7/30/2019 Mc Kinsey 7-S Framework
22/26
McKinsey 7-S Model
The 7-S Model can be avaluable tool to initiatechange processes andto give them direction;i.e. determine currentstate and ideal state ofeach element, and
develop action plans toclose the gaps
Strategy
Structure
Systems Style
Staff
Skills Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
23/26
McKinsey 7-S Model
In change processes,
many organizations
focus their efforts on
the hard Ss; however,the soft factors can
make or break a
successful change
process. All factors
must be accounted for.
Strategy
Structure
Systems Style
Staff
Skills Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
24/26
McKinsey 7-S Model
Interrelated
Equilibrium
Foundation of
corporate culture
Levers available to
management
Strategy
Structure
Systems Style
Staff
Skills Superordinate goals
-
7/30/2019 Mc Kinsey 7-S Framework
25/26
Executing Change
Seven Key Considerations Strategic Intent
Substance
Scale
Scope/Breadth
Speed
Sequence Style
Style
Scope Substance
Speed
Sequence
Scale
Strategic
Intent
-
7/30/2019 Mc Kinsey 7-S Framework
26/26
Strategic Intent
Substance
Scale
Scope/Breadth
Speed
Sequence
Style
Style
Scope Substance
Speed
Sequence
Scale
StrategicIntent
Precise Broad
Soft Ss Hard Ss
Small Large
Isolated Organization-wide
Slow Fast
Hard Soft Soft Hard
Top Down Bottom Up