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