MC Kinsey 7-S Framework

ORGANIZATION MANAGEMENT
Organizational Design
McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Superordinate goals
McKinsey 7-S Model
Strategy The Hard Ss Structure The hard elements are factual and easy to identify. They can be Systems found in strategy statements, Style corporate plans, organization charts, and other documentation Staff Skills Superordinate goals
McKinsey 7-S Model

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
Strategy
Actions a company plans in response to or in anticipation of changes in its external environment
Structure
Basis for specialization and coordination, influenced primarily by strategy and by organization size and diversity
Systems
Formal and informal procedures that support the strategy and structure (Systems are more powerful than they are given credit)
Organizational Structure
Organization Chart
formal
reporting relationships levels in hierarchy spans of control departmentalization
Systems to facilitate:
coordination communication integration
Structural Designs
Functional Structure
Can adapt functional structure with horizontal linkages
Divisional Structure Geographical Structure Matrix Structure Horizontal Structure / Product Line Structure Hybrid Structure
CEO
Vice President Fianance
Vice President Manufacturing
Director Human Resources
Chief Accountant
Budget Analyst
Plant Maintenance Superintendent Superintendent
Training Specialist
Benefits Administrator
Other Organizational Forms

Joint Ventures Licensing agreements Strategic Alliances Consortia Virtual organizations Global (transnational) Work Teams
Systems various elements

Communications practice and system Management reporting system Approval process Planning/budgeting system Rewards system including appraisal Rules
From Tasks to Structure

Tasks define jobs Jobs define skills required Skills (and other considerations) define staff
Over
time skills change as staff gains knowledge and experience, and as technology and corporate infrastructure mature
Collection of jobs basis for structure
Job design considerations
Do they have the necessary skills and knowledge to fulfill proposed / expanded job requirements? What are the needs of the incumbent or the rest of your workforce in general?

Monetary Growth Socialization

7-S Model The Soft Ss - 1
Style / Culture
The culture of the organization, consisting of Organizational culture: the dominant values, beliefs and norms which develop over time and become relatively enduring features of organization life Management style: what managers do rather than what they say (where they spend their time and attention, what they allow, what they reward, etc)
Staff Skills Shared values / Superordinate goals
7-S Model The Soft Ss - 2

Style / Culture Staff
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
Distinctive competencies what the company does best, ways of developing or shifting competencies
Skills
Shared values / Superordinate goals
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
Organizational Culture

Culture is to organizations what personality is to individuals
All companies have cultures

Culture
by default Culture by design thoughtful choices based on values and core beliefs
How does a company consciously create its culture?
From Gray & Larson Project Management: The Managerial Process
Types of Organizational Cultures
Control cultures
Drive for predictability and order
Collaboration cultures
Pursue close relationship with customers
Competence cultures
Pursue excellence and innovation
Cultivation cultures
Pursue life enrichment for customers and employees
Organizational Culture
Observable Evidence:
Symbols Ceremonies Stories Behaviors Language Dress
Underlying Roots:
Values, Assumptions,
Beliefs, Attitudes, Feelings
Culture in practice
Conflict management
Relationship or interpersonal conflict Task / process conflict Functional vs. dysfunctional conflict Factors: goal incompatibility, limited resources, differences
Power the capacity to influence behavior
Positional power: rewards/consequences, control of resources, information and decision control Personal power: expert, referent (based on identification and admiration)
Politics the use of power to influence decisions
Management vs. Leadership

Planning & budgeting vs. Setting the direction
Organizing & staffing Controlling & problem solving
vs. vs.
Aligning people Motivating people
Management is about coping with complexity Leadership is about coping with change
Management vs. Leadership

Some managers (but not all) are leaders Some leaders (but not all) are good managers A manager gets work done through the efforts of other people
Includes planning, organizing, motivating, and
controlling
A leader creates and realizes a vision

Communicates that
vision and moves the organization toward that vision
McKinsey 7-S Model

Effective organizations achieve a harmony between these seven elements; if one element changes, then this will affect all the others
McKinsey 7-S Model

The 7-S Model can be a valuable tool to initiate change processes and to give them direction; i.e. determine current state and ideal state of each element, and develop action plans to close the gaps
McKinsey 7-S Model

In change processes, many organizations focus their efforts on the hard Ss; however, the soft factors can make or break a successful change process. All factors must be accounted for.
McKinsey 7-S Model

Interrelated Equilibrium Foundation of corporate culture Levers available to management
Executing Change
Seven Key Considerations

Strategic Intent Substance Scale Scope/Breadth Speed Sequence Style
Style
Scope
Substance
Strategic Intent
Speed
Scale
Sequence
Strategic Intent
Precise Broad
Scope
Style
Substance Strategic Intent Speed Scale
Substance
Soft Ss Hard Ss
Sequence
Scale
Small Large
Scope/Breadth
Isolated Organization-wide
Speed
Slow Fast
Sequence
Hard Soft Soft Hard
Style
Top Down Bottom Up

MC Kinsey 7-S Framework

Uploaded by

Copyright:

Available Formats

MC Kinsey 7-S Framework

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MC Kinsey 7-S Framework

Uploaded by

Copyright:

Available Formats

ORGANIZATION MANAGEMENT

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Superordinate goals

McKinsey 7-S Model

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Superordinate goals

7-S Model The Hard Ss

Strategy Structure Systems Style Staff Skills Superordinate goals

Actions a company plans in response to or in anticipation of changes in its external environment

Strategy Structure Systems Style Staff Skills Superordinate goals

reporting relationships levels in hierarchy spans of control departmentalization

Strategy Structure Systems Style Staff Skills Superordinate goals

Can adapt functional structure with horizontal linkages

Vice President Fianance

Vice President Manufacturing

Director Human Resources

Plant Maintenance Superintendent Superintendent

Other Organizational Forms

Strategy Structure Systems Style Staff Skills Superordinate goals

Systems various elements

Strategy Structure Systems Style Staff Skills Superordinate goals

From Tasks to Structure

Strategy Structure Systems Style Staff Skills Superordinate goals

Collection of jobs basis for structure

Job design considerations

Monetary Growth Socialization

Strategy Structure Systems Style Staff Skills Superordinate goals

7-S Model The Soft Ss - 1

Strategy Structure Systems Style Staff Skills Superordinate goals

Staff Skills Shared values / Superordinate goals

7-S Model The Soft Ss - 2

Style / Culture Staff

Strategy Structure Systems Style Staff Skills Superordinate goals

Shared values / Superordinate goals

Culture is to organizations what personality is to individuals

Strategy Structure Systems Style Staff Skills Superordinate goals

All companies have cultures

How does a company consciously create its culture?

From Gray & Larson Project Management: The Managerial Process

Types of Organizational Cultures

Strategy Structure Systems Style Staff Skills Superordinate goals

Strategy Structure Systems Style Staff Skills Superordinate goals

Beliefs, Attitudes, Feelings

Strategy Structure Systems Style Staff Skills Superordinate goals

Power the capacity to influence behavior

Politics the use of power to influence decisions

Management vs. Leadership

Organizing & staffing Controlling & problem solving

Aligning people Motivating people

Management vs. Leadership

A leader creates and realizes a vision

vision and moves the organization toward that vision

Strategy Structure Systems Style Staff Skills Superordinate goals

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Superordinate goals

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Superordinate goals

McKinsey 7-S Model

Strategy Structure Systems Style Staff Skills Superordinate goals