Chapter-3 Mckinsey 7S Frame Work

CHAPTER-3
McKinsey 7s Frame work

Factors to organize company in a holistic and effective way. 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 strategy. Large of small they are all
interdependent, so if you fail to pay proper attention to one of them, this
may affect all others. On top of that, the relative importance of each factor
may vary over time
The McKinsey 7s model involves seven interdependent factors which
are categorized as either “hard” or “soft” elements:
Hard Elements
Strategy
Structure
System
Soft Elements
Shared values
Skills
Style
Staff
Hard elements are easier to defined or identify and management can

directly influence them. These are strategy statement, organization charts
and reporting lines and formal processes and IT system.
Soft elements, on the other hand, can be more difficult to describe,
and are less tangible and more influenced by culture. However, these soft
elements are as important as the hard elements if the organization is going
to be successful.
The way the model is present in Figure below depicts the
interdependency of the elements and indicates how a change in one
affects all the others.
Strategy
The plan devised to maintain and build competitive advantages.
Structure
The way the organization in structure and who reports to whom.
System
The daily activities and procedures that staff members engaged in to
get the job done.
Shared Values
Called “superordinate goals” when the model was first development,
these are the core values of the company that are evidence in the
corporate culture and the general work ethic.
Style
The style of leadership adopted.
Staff
The employees and their general capabilities.
Skills
The actual skills and competencies of the employees working of the
company.
Strategy
To bring digitalization in India, reliance Jio infocom ltd making a

ecosystem in the society.
They are
 PAN India Presence
 Providing 4G facility and connectivity ( cristal and clear)
 With affordable prices, and lower when compared to
competitors.
Structure
National head quarters
Business operations Region

center
PARTNERS
(BOC)
State
/
Network operations
Area
Centre
(NOC)
Jio centre
Market customer / Network

Structure of Jio centre
JCM
Sales Finance HR Network Activation Administration BPO
ASM(Handset) ASM (SIM Cards)
TSM TSM
Distributors Distributors
FOS/DSE FOS/DSE
Retailers Retailers
Customer Customer
System
BY this system we mean all the procedure, formal and informal, that makes
the organization grow, day by day and year by year: capital budgeting
system, training, system cost accounting, procedures budgeting system. If
there is a variable in our model that threatens to dominate the others, it
could well be system do you want to change an organization without
disruptive restructuring.
System means process and procedures to be taken for the
accomplishment of goals as discusses earlier. The JC (Jio centre) has
some procedures to be followed like as the manager responsibilities to
control the unit by taking business statistics every Friday of the week for
analyzing the Market position in regard to all parameters.
Information system
The implementation of computers has made information flow fast and
reliable. The information versatile.
Shared values
The values and belief of the company. Ultimately they guide employees
towards ‘valued’ behavior. The connecting center if McKinsey’s is shared
value, what does the organization stands for and that it believes in central
beliefs and attitudes.
Shared values of Reliance group
 Trust
 Integrity
 Dedication
 Commitment
 Transparency
 Enterprise
 Hard work and team play
 Learning and Innovation
 Empathy and humility
Style
It is remarkable how often writers, in characterizing a corporate

management of the business press, fall back on the work “style” The
trouble we have with style is not recognizing its importance, but in doing
much about it. Personalities don’t change, or so the conventional wisdom
goes.
We think it is important to distinguish between the basic personality of a top

management team and the way the team comes across to the organization.
Organization may listen to what managers say but they believe what
managers do, not words, but pattern of action is decisive. The power of
style then is essentially manageable.
One element of the manager style is how he or she chooses to spend their
time in nearly compartmentalized planning, organizing, motivating and
controlling modes of classical management theory
Skill
The capabilities and competencies that exist within the company.
What it does best. Distinctive of personnel with that of organization as a
whole and the core competencies that the company is best at performing.
Because we regularly observe that organization facing big
discontinuous in business conditions must do more than shift strategic
focus, Frequently they need to add a new capability, that is to say, new
skill. This dominating capability needs, unless explicitly labeled as such,
often get lost as accompany “attacks new market” or “decentralized to give
managers autonomy”
The skill are continuously upgraded by providing training, continuous
training and upgrading technical, behavioral and managerial skills is a way
of life of Reliance. Reliance encourages employees to increase their skills
regularly to enable them to face the challenges of the changing
requirement of customers that fit market up and down.
STAFF
Recruitment and Selection Policy
The upper level members like zonal managers, regional managers,
branch managers and senior executives are recruited by publishing
recruitment advertisement in leading national level newspaper and their
websites. The qualified applicant are then called for interview and selected.
The regional manager has authority to select lower employees like
marketing executives, accountant etc by approval of zonal manager.
New employee has given training under experienced employees. The new
employee work under experience employee and observe his all activities.
When company employs new technology or there is any change in the
working of company the training program is arranged.

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CHAPTER-3

McKinsey 7s Frame work

Hard elements are easier to defined or identify and management can

To bring digitalization in India, reliance Jio infocom ltd making a

National head quarters

Business operations Region

Market customer / Network

Sales Finance HR Network Activation Administration BPO

ASM(Handset) ASM (SIM Cards)

It is remarkable how often writers, in characterizing a corporate

We think it is important to distinguish between the basic personality of a top

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