mckinsey new 7 s framework
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Mckinsey new 7s frameworkTRANSCRIPT
7S
Jehaangir VikashVijayShivani
THE MCKINSEY 7S FRAMEWORK
Management model developed by well-known business
consultants Robert H. Waterman, Jr. and
Tom Peters.
The McKinsey 7S Framework
A tool to assess and monitor changes in the internal situation of
an organization
USAGE: GENERIC 7S FRAMEWORK
Wide variety of situations
Determine how best to implement a proposed strategy.
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.
GENERIC 7S FRAMEWORK Hard Elements
Soft Elements
Central to the development of
all the other critical elements
•Easier to define•Easier to identify•Management can directly influence them
•Difficult to describe•Less tangible•More influenced by culture
ELEMENTS OF THE MCKINSEY 7S FRAMEWORK
Aligned
Mutually reinforcing The current
situation
A proposed future situation
identify gaps and inconsistencies between them
Analyze
AdjustF
ine T
un
ing
Ensure that your
organization works
effectively
HOW TO USE THIS MODEL?
Strategy
What is our Strategy?
How do we intend to achieve our
objectives?
How do we deal with competitive
pressure?
How are changes in customer demands
dealt with?
How is strategy adjusted for environmental issues?
7 CHECKLIST QUESTIONS
Structure
How is the company/team
divided?
What is the hierarchy?
How do the various departments
coordinate activities?
How do the team members organize
and align themselves
Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing
Where are the lines of communication?
Explicit and implicit?
7 CHECKLIST QUESTIONS
Systems
What are the main systems that run the
organization? Consider financial and HR systems
as well as communications and
document
Where are the controls and how are they
monitored and evaluated?
What internal rules and processes does
the team use to keep on track?
7 CHECKLIST QUESTIONS
Shared Values
What is the corporate/team
culture?
What are the fundamental values
that the company/team was
built on?
How strong are the values?
What are the core values?
7 CHECKLIST QUESTIONS
Style
How effective is that leadership?
Are there real teams functioning within the
organization or are they just nominal
groups?
Do employees/team members tend to be
competitive or cooperative?
How participative is the
management/leadership style?
7 CHECKLIST QUESTIONS
Staff
What positions or specializations are represented within the team?
What positions need to be filled?
Are there gaps in required
competencies?
7 CHECKLIST QUESTIONS
Skills
What are the strongest skills
represented within the company/team?
Are there any skills gaps?
What is the company/team known for doing
well?
Do the current employees/team
members have the ability to do the job?
How are skills monitored and
assessed?
7 CHECKLIST QUESTIONS
Examine where there are gaps and inconsistencies between elements
Start with your Shared Values: Are they consistent with your structure, strategy, and systems? If not, what needs to change?
Then look at the hard elements. How well does each one support the others? Identify where changes need to be made
Next look at the other soft elements. Do they support the desired hard elements? Do they support one another? If not, what needs to change?
Re-analyze how that impacts other elements and their alignment
7 MATRIX QUESTIONS
THE MOST COMMON USES OF THE MCKINSEY 7S FRAMEWORK ARE:
To facilitate organizational change.
To help implement new strategy.
To identify how each area may change in future.
To facilitate the merger of organizations.
The McKinsey New 7S is best for hypercompetitive environment.
VISION FOR DISRUPTION Superior stakeholder satisfaction Strategic soothsaying
TACTICS FOR DISRUPTION Shifting the rules of the game Signaling strategic intent Simultaneous and sequential strategic thrusts
CAPABILITY FOR DISRUPTION Positioning for speed Positioning for surprise
KEY GOALS OF NEW 7S
Disrupting the status quo
Creating temporary advantageSeizing the initiativeSustaining the momentum
Superior stakeholder satisfaction
Successful priority: customer as most
important stake holder.
Key to identify customer satisfaction is to
Identify customer needs that even the customer can not articulate
Find new and previously unserved customerCreate customer need that never existedPredict changes in customer need before they happen
Strategic soothsaying
Understanding the future evolution of market and technology that will create new opportunity
Opportunity can be found by creatively
combining products
Understanding trends in business environment
Serving new customer market with existing capabilities
Positioning for speed and surprise
Prepositioning company’s organisational
capabilities for speed and surprise Creating the abilities to react quickly to opportunities or
to outmanoeuvre competitors
The longer the first mover can delay entrance by competitors in to market by stunning them with a
surprise attack, the more time there is to create a strong position
Shifting the rules of the gameCreating new opportunities for satisfying customer
Microsoft’s creation of Windows also shifted the rules and created new markets for applications programs.
It changed the nature of competition between IBM- Compatible personal computers and apple system
Signaling strategic intentVerbal announcements of strategic intent –
are important preludes to more powerful actions. Signals can stall the actions of competitors or create
uncertainty that erodes their will to defend against attacks.
Pre announce or fake aggressive offensive moves that alter the behaviour of competitors.
Simultaneous and sequential strategic thrusts
Use of a series of a action design to stun or confuse competitors.
Disrupting the status quo to create new advantages or erode those of competitors.
Thrust move on several geographic or market fronts simultaneously.
Simultaneous and sequential thrusts are used by
hypercompetitive firms to harass, paralyze, induce error, or block competitors.
FAILURES
Losing touch with customers
Lack of strategic soothsaying
Lack of speed Lack of surprise Inability to shift the rule of game Failure to use signalling effectively Failing victim to simultaneous and sequential thrust
Losing touch with customers
Lack of strategic soothsaying
Lack of speed
Lack of surprise
Inability to shift the rule of game
Failure to use signalling effectively
Failing victim to simultaneous and sequential thrust
&
Summary
New 7S
VISION FOR DISRUPTION
TACTICS FOR DISRUPTION CAPABILITY FOR DISRUPTION