THE MCKINSEY 7-S FRAMEWORK

• THE MCKINSEY 7-S FRAMEWORK

• STRATEGIC MGMT

1. DEVELOPED IN 1970 BY MCKINSEY AND COMPANY
2. DEVELOPED BY TOM PETERS AN ROBERT WATERMAN
3. STRESSES THE EFFECTIVE CHANGE CAN BE BROUGHT ABOUT ONLY ONE SHOT EFFORT
4. MODEL WAS DEVELOPED TO MEASURE THE EFFECTIVENESS OF AN ORGANIZATION
5. THE 7S MODEL HELPS IN ANALYZING HOW THE ORGANIZATION IS POSITIONED TO ACHIEVE ITS INTENDED OBJECTIVE

• MODEL HELPS:-

1. ALIGNMENT OF THE PROCESSES AND DEPARTMENTS DURING INTERNAL RECONSTRUCTION MERGER AND ACQUISITIONS
2. SUCCESSFUL IMPLEMENTATION OF THE PROPOSED STRATEGY
3. IMPROVING THE OVER ALL PERFORMANCE OF THE ORGANIZATION

• 7-S MODEL
• 7-S MODEL
• STRATEGY

1. COVER VISION,MISSION,OBJECTIVES,GOALS AND MAJOR ACTION PLANS AND POLICIES
2. GAINING COMPETITIVE ADVANTAGES OVER RIVALS
3. EXECUTION OF STRATEGY POSES MORE PROBLEM
4. ACTION PLAN

• STRUCTURE

1. DIVIDES THE ORGANIZATION ROLES AND TASK
2. DIVIDE THE ORGANIZATION
3. COORDINATION AND CONTROL
4. REDUCTION IN UNCERTAINTY
5. SPECIFIC TYPE OF STRUCTURE

• SYSTEMS

1. RULES AND REGULATIONS
2. PRODUCTION PLANNING AND CONTROL
3. BUDGETING
4. FINANCIAL COST AND ACCOUNTING CONTROL
5. TRAINING AND DEVELOPMENT

• STYLE

1. PATTERNS OF ACTIONS TAKEN BY TH E MGMT
2. VISIBLE THROUGH REPORTING SYSTEM

• STAFFING

1. RECRUITMENT
2. SELECTION TRAINING
3. DEVELOPMENTS

• SKILLS

1. ABILITY OR PROFICIENCY OF THE EMPLOYEE AS WELL AS THE ORGANIZATION
2. DOMINANT CAPABILITIES

• SUPER ORDINATE GOALS

1. STANDS FOR COMPANY’S VISION,MISSION,VALUE AND PHILOSOPHY
2. SET OF VALUES AND ASPIRATION

• USES OF MCKINSEY 7S FRAMEWORK

1. IS USEFUL FRAMEWORK FOR REVIEWING AN ORGANIZATION’S MARKETING CAPABILITIES FROM DIFFERENT VIEW POINT
2. DEVELOPED BY TOM PETERS AN ROBERT WATERMAN
3. WORKS WELL IN DIFFERENT TYPES OF BUSINESS OF ALL SECTOR AND SIZES BUT WORKS IN MEDIUM AND LARGE BUSINESS

• CAN BE USED:-

1. REVIEW THE EFFECTIVENESS OF AN ORGANIZATION IN ITS OPERATION
2. DETERMINE HOW TO BEST REALIGN AN ORGANIZATION TO SUPPORT A NEW STRATEGIC DIRECTION
3. ASSESS THE CHANGES NEEDED TO SUPPORT DIGITAL TRANSFORMATION OF AN ORGANIZATION

• MCKINSEY MODEL
• HARD ELEMENTS: STRATEGY,STRUCTURE AND SYSTEMS:- HARD ELEMENTS CAN BED DEFINED AND DIRECTLY INFLUENCED
• THEY ARE THE OFTEN MORE TANGIBLE ELEMENTS OF A BUSINESS LIKE THE STRATEGY DOCUMENTS AND MISSION STATEMENTS AND ALSO INCLUDE ORGANIZATION CHART
• SOFT ELEMENTS : STAFF,SKILL AND STYLE,SHARED VALUE:-
• HARD ELEMENTS PROVIDE THE FRAMEWORK HOW THE COMPANY OPERATES,SOFT ELEMENTS ARE THE LESS TANGIBLE QUALITIES THAT A COMPANY DEMONSTRATES THROUGH THE WORK
• HARD ELEMENTS ANSWER MANY WHAT QUESTIONS ABOUT BUSINESS
• SOFT ELEMENTS ANSWERS MANY WHO AND HOW QUESTIONS ABOUT A BUSINESS
• STAFF: WHO COMPRISE THE COMPANY'S WORKFORCE
• SKILL: HOW SKILLED WORKFORCE IS
• STYLE: HOW DO ORGANIZATIONAL LEADER INSPIRE THEIR COLLEAGUES
• SHARED VALUE:-HOW DOES THE COMPANY DEMONSTRATES THE CORE VALUE
• EXAMPLE

1. STRATEGY: SMARTPIXEL CREATES SMART PHONE GAMES IN A VARIETY OF GENRES(PUZZLES,PLATFORM,ACTION RACING ETC
2. SMART PIXEL IS SEPARATED INTO THREE MAIN TEAMS:GAMES,DESIGN AND ARTISTIC ( STRUCTURE)
3. PROCESSES,PROCEDURES AND INFORMATION SYSTEM
4. STAFF:- BREAKDOWN OF STAFF IN TERMS OF THEIR BACKGROUND AGE GENDER AND FEATURES
5. SKILL” GENERAL CAPABILITIES AND SPECIFIC SKILLS
6. STYLE:-BEHAVIOR OF KEY MANAGERIAL PERSONS
7. SHARED VALUE:-AIMS TO INSTILL A SENSE OF PERSONALITY BEHIND EACH OF THEIR GAMES,INCORPORATING ADVANCED GAME DESIGN IDEAS IN SIMPLE AND ACCESSIBLE GAMES AS POSSIBLE