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McKinsey’s 7s Model

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Myk Sanchez

on 23 September 2013

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Transcript of McKinsey’s 7s Model

McKinsey’s 7s Model
STRUCTURE IS NOT ORGANIZATION

“Diagnosing and solving organizational problems mean looking not merely to structural reorganization for answers but to a framework that includes structure and several factors.”
THE END
THANK YOU!!!!!!
History
Management consultants and co-leader of McKinsey’s Organizational Effectiveness practice, Robert H. Waterman and Thomas J. Peters developed the 7S Framework

“In the Search of Excellence”

They were also the ones who developed “Management by Walking Around”

Objective of the Model

To analyze how well an organization is positioned to achieve its intended objective

Usage
Improve the performance of a company by identifying the strengths and weaknesses of the organization.

Understand the core and most influential factors. Examine the likely effects of future changes within a company.

Align departments and processes

Determine how best to implement a proposed strategy

McKinsey’s 7s Model
The Hard S’s

STRATEGY

STRUCTURE

SYSTEMS

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

The Soft S’s
STYLE STAFF SKILLS SHARED VALUES

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.

Strategy 
Plans for the allocation of a firms scarce resources over time to reach identified goals

Plans of action an organization prepares in response to, or anticipation of, changes in its external environment

Structure
Represents how the company is organized

Refers to how organization's units relate to each other: centralized; decentralized; matrix, network

System
Refers to the formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (e.g. retail systems, call center systems)

Staff
Refers to the company's people resources and how they are developed, trained and motivated

Selection, reward, recognition, retention, motivation and assignment to appropriate work are all key issues here

Style
Refers to the employees shared and common way of thinking and behaving - unwritten norms of behaviour and thought

Skill
Refers to the distinctive capabilities of personnel or of the organization as a whole which are needed to effectively execute the company’s vision, values, goals and strategies

Shared Values (Superordinate Goals)
The interconnecting center of McKinsey's model

Set of traits, behaviors, and characteristics that the organization believes in

Include the organization’s mission and vision

APPLICATION ON ST. IGNATIUS REALTY & DEV'T CORP
CONCEPT
STRATEGY
STRUCTURE
SYSTEM
SHARED VALUES

STAFF
STYLE
SKILLS
Full transcript