McKinsey's 7S Model

Introduction
O First appeared in The Art of Japanese Management

Richard Pascale & Anthony Athos , 1981

O Tom Peters & Robert Waterman what made a

company successful

These four authors met and 7S model was born

O Appeared in the book In Search of Excellence- Taken

up as a basic tool by the global management consultancy Mc Kinsey

O Analyses organizations and their effectiveness

O Considers company as a whole organization's

problems diagnosed and a strategy may be developed and implemented

What is the 7-S Framework

O It is a management model that describes 7 factors

to organize a company in an holistic and effective way.

O 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.

O 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

McKinseys 7s Model

McKinseys 7-S Model

O Strategy O Structure O Systems O Style

The Hard Ss
The hard elements are factual and easy to identify. They can be found in strategy statements, corporate plans, organization charts, and other documentation

O Staff
O Skills O Shared Values

McKinsey 7-S Model

O Strategy O Structure O Systems O Style O Staff O Skills O Shared Values

The Soft Ss
The soft elements are difficult to describe since they are continuously developing and changing. They are highly determined by the people at work in the organization.

7-S Model The Hard Ss

O Strategy O Actions a company plans in response to or in anticipation of changes in its external environment O Structure O Basis for specialization and coordination, influenced primarily by strategy and by organization size and diversity O Systems O Formal and informal procedures that support the strategy and structure (Systems are more powerful than they are given credit)

7-S Model The Soft Ss - 1

O Style / Culture

The culture of the organization, consisting of

O Organizational culture: the dominant values, beliefs

and norms which develop over time and relatively enduring features of organization life

become

O Management style: what managers do rather than what

they say (where they spend their time and attention, what they allow, what they reward, etc)

O Staff O Skills O Shared values

7-S Model The Soft Ss - 2

O Style / Culture
O Staff
O The people/human resource management ways of

shaping basic management values, processes used to develop managers, ways of introducing new employees and managing careers, socialization processes

O Skills
O Distinctive competencies what the company does best,

ways of developing or shifting competencies

O Shared values
O Guiding concepts, fundamental ideas around which a

business is built simple, usually stated at abstract level, have great meaning inside the organization, although outsiders may not see or understand them

Benefits of the Model

Improves the performance of a company Examines the likely effects of future changes within a

company

Align departments & processes during a merger or

acquisition

Determines

strategy

how best to implement a proposed

Drawbacks
The external environment is not mentioned in the

McKinsey 7S Framework, although the other variables do exist & that only the most crucial variables are depicted in the model.

The notion of performance or effectiveness is not

made explicit in the model.

How to use the model?

The model can be used for any type of change
Restructuring Organizational measures

Change of leadership, etc. Can be used to analyze current situation, a proposed

situation and to identify gaps and inconsistencies between them

HOW ?

Implementation by Infosys
Shared Values

Customer delight Leadership by example Integrity and transparency Pursuit of excellence Fairness

Strategy

Client focused strategy Emphasis on custom built software according to

client requirements Commands premium margins Increase business form existing and new clients Expand geographically

Implementation by Infosys
Structure
Free form organization devoid of hierarchies Constitution of teams based on flexibility

Skills
Eligibility criteria made mandatory for appraisal Entry into Balanced scorecard hall of Fame for

Executing Strategy for achieving breakthrough performance

Implementation by Infosys
Style To develop leadership qualities in their employees Emphasis on
Open door Policy Continuous Sharing of information Takes input from employees in decision making Build personal rapport with employees

Staff Selecting candidates who have superior academic records, technical skills and high level of learn ability Emphasis on T&D of employees

Conclusion
Its

a Value Based management (VBM) that describes how one can holistically and effectively organize a company.

Thank You