7S MC KINSEY: Management Tool

Samini Ferdous a/p SandrakanthamPeunding Latihan Kanan

Kluster Pengajian Pembangunan dan [email protected]

INTAN JALAN ELMU

7’S MCKINSEY

MODEL

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KURSUS MANAGEMENT DIAGNOSTIC TOOLS

SCOPE

• Introduction• Purpose of using 7’S McKinsey

Framework in strategic planning in an organisation

• Hard elements of 7’S McKinsey Framework

• Soft elements of 7’S McKinsey Framework

• Conclusion2

OBJECTIVE

At the end of the session :

• To be able to explain the seven elements in 7’S McKinsey Framework

• To distinguish the hard elements and soft elements in an organisation based on 7’S McKinsey Framework

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INTORDUCTION• It was first mentioned in "The Art Of

Japanese Management" by Richard Pascale & Anthony Athos in 1981

• Taken up as Organizational Analysis Tool by the global management consultancy company McKinsey.

• Monitor changes in the internal situation of the organization

• It describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates 4

MCKINSEY'S 7S FRAMEWORK

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PURSPOSE OF 7’S MCKINSEY TOOL

IMPROVE

EXAMINE

ALLIGN

DETERMINE

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THE HARD SS & SOFT SS

StrategyStructure System

Shared Values

Skills Staff Style

HARD Ss SOFT Ss

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STRATEGY

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STRATEGY Plans or course of action for the

allocation of a firms scarce resources, over time, to reach identified goals , eg. environment, competition, customers

Searching Questions : What are our strategic objectives? Do we really understand our strategies? How can we compete? (niche, making

ourselves be more competitive) How to satisfy our customers/stakeholders ?

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STRUCTURE Organization’s structure, hierarchy and

coordination, including division and integration of tasks and activities- centralized; - functional divisions (top-down); - decentralized (the trend in larger organizations); - matrix

Searching Questions : What is the organisation structure? How do the teams work together ? What is the quality of communication?

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SYSTEMS Primary and secondary processes that the

organization employs to get things done The procedures, processes and routines that

characterize how important work is to be done:

- Operational system- Computer system- Human Resource System- Financial System

Searching Questions : What are the main systems used ? How do we monitor and measure the systems? What are the process used ? 11

SHARED VALUES

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SHARED VALUES Is the interconnecting center of

McKinsey's model Core beliefs and expectations that people

have in the organizationOrganisation culture practice and

attitudes.

Searching Questions :What are the values we keep to within the

organisation?What is the corporate culture?What is the strength of the culture?How are we communicating those values? 13

STYLE Unwritten yet intangible evidence of how

management really sets priorities and spends its time

Cultural style of the organization and how key managers behave in achieving the organization’s goals.

Management Styles

Searching Questions : What style does the management team

adopt? How effective it is? 14

STAFF Numbers and types of personnel within

the organization. Collective presence of the people in the

organization & their general capabilities

Searching Questions : How staffs play their roles and support the

organization? The right people in the right places? What development do they need?

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SKILLS Organizational capabilities; credibility,

image, influence Distinctive capabilities of personnel or of

the organization as a whole. Core Competencies

Searching Questions : What are the strongest skill we have in the

organisation? What skill gaps are there? Do we have staffs who do the job competently? How do we measure and reward success?

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Determines how best to study the strengths and weaknesses of an organisation

Can be applied to almost any organizational or team effectiveness issue

Guides organizational change or improvement in terms of the strategies, structure & system

The hard and soft elements are interdependent – if each aspects support each other, then the organisation can be said to be ‘effective’

CONCLUSION

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CASE STUDY DISCUSSION

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