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McKinsey 7-S Strategy Model

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This is a partial preview. You can download the full document here:
http://pptlab.com/ppt/McKinsey-7S-Strategy-Model-28

The McKinsey 7-S Model is a business framework used to evaluate organizational effectiveness. The basic premise of the model is that there are seven internal, interrelated aspects of an organization that need to be aligned for the organization to be successful.

This framework can be used to understand our organization and leverage it to maximize efficiency and profitability. It can also be used in situations where an alignment perspective is useful. The scope of these situations doesn’t matter—for instance, it can be applied to elements of a project or of a team.

The 7-S Model was developed by two McKinsey consultants, Tom Peters and Robert Waterman.

This document also includes PowerPoint templates to be used in your own business presentations.

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  • 1. Crowdsourced BusinessPresentation Design ServiceMcKinsey 7-S ModelSeven Elements of OrganizationalEffectivenessApril 16, 2013The McKinsey 7-S Model is a business framework used to evaluate organizationaleffectiveness and alignment. It identifies 7 internal, interrelated organizationalelements: Shared Vision, Strategy, Structure, Systems, Style, Staff, and Skills. Thisdocument explains the framework and includes PowerPoint templates to be used foryour own presentations and analysis.ORIGINAL PROJECT DETAILShttp://pptlab.com/ppt/McKinsey-7S-Strategy-Model-28
  • 2. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 2PPT Lab (www.pptlab.com) is the only crowdsourcedpresentation design service. Get consulting-qualitypresentations at a fraction of the cost!Each month, we will create well over 50 slides of for our members.As a member, you will drive what business slides we create bysubmitting your own presentation projects to our team. Allpresentations will be created by a team of managementconsultants and follow the Consulting Presentation Framework.www.PPTLab.comsupport@pptlab.com
  • 3. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 3Contents Overview 4 7S Deep Dives 11 Templates 19
  • 4. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 4Contents Overview 7S Deep Dives Templates
  • 5. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 5The McKinsey 7-S Model is a framework used to evaluate organizationaleffectiveness and alignmentExecutive SummaryThe McKinsey 7-S Model is a business frameworkused to evaluate organizational effectiveness. Thebasic premise of the model is that there are seveninternal, interrelated aspects of an organization thatneed to be aligned for the organization to besuccessful.This framework can be used to understand ourorganization and leverage it to maximize efficiencyand profitability. It can also be used in situationswhere an alignment perspective is useful. Thescope of these situations doesn’t matter—forinstance, it can be applied to elements of a projector of a team.The 7-S Model was developed by two McKinseyconsultants, Tom Peters and Robert Waterman.• Strategy• Structure• Systems• Shared Values•Style•Staff•Skills1234567StructureSystemsStyleStaffSkillsStrategySharedValuesTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 6. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 6The 7-S Model can be applied to a wide variety of situationsApplicable Situations A diagnostic tool for an ineffective organization Improve the performance of a company Guides organizational changes Examine the likely impacts of future changes within an organization Align business units and processes during a merger of acquisition Determine how best to implement a proposed corporate strategy Combine rational and hard elements with emotional and soft elementsTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 7. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 7This diagram is the typical presentation of the McKinsey 7-S Model7-S Model DiagramWe must act on all S’s in parallel—as all S’s are interrelated and must align equally.StructureSystemsStyleStaffSkillsStrategySharedValuesTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 8. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 8Shared Values is centrally located, because all others elements stem andevolve from it7-S Model Diagram – Shared ValuesStructureSystemsStyleStaffSkillsStrategySharedValues• Placing Shared Values in themiddle of the model emphasizesthat these values are central to thedevelopment of all other criticalelements• The companys structure, strategy,systems, style, staff and skills allstem from why the organizationwas originally created, and what itstands for• The original vision of the companywas formed from the values of thefounders--as these Shared Valuesevolve, so do all the otherelementsTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 9. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 91These seven elements are categorized into so-called Hard S’s and Soft S’sHard vs. Soft ElementsStructureSystemsStyleStaffSkillsStrategySharedValuesHARD ELEMENTS• Hard elements are Strategy, Structure, Systems• They are feasible and easily identified• These elements are also easier to change thansoft elements• They can be found in strategy statements,corporate plans, organizational charts, andother business documentsSOFT ELEMENTS• Soft elements are Shared Values, Skills, Staff,and Style• These are harder to change directly and usuallytake longer to change• They are harder to describe, since capabilities,values, and elements of corporate culture andcontinually evolving• These elements are highly determined by theemployees of the organizationHARD ELEMENTSSOFT ELEMENTSTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 10. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 10When conducting 7-S analysis, it’s best to use an iterative approachstarting with Shared Values, followed by hard S’s, and then soft S’sApproachStart with your Shared Values.Are they consistent with your structure, strategy, and systems? If not, what needs to change?Next, look at the hard elements.How well does each one support the others? Identify where changes need to be made.Then, evaluate the other soft elements.Do they support the desired hard elements? Do they support one another? If not, what needs to change?As you adjust and align the elements, you will need to use an iterative and typically time-consumingprocess of making adjustments; and then reanalyzing how that impacts other elements and theiralignments.1234THIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 11. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 11Contents Overview 7S Deep Dives Templates
  • 12. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 12StructureSystemsStyleStaffSkillsStrategySharedValuesShared Values are the core values of the company that are evidenced in the corporate culture andthe general work ethic.KEY QUESTIONS What are the core and stated values? What are these values intended to contributeto our business? What is the corporate or team culture? How strong are our values? What are the fundamental values that theorganization or team was built on? What do we measure and reward? Do our KPIs, metrics, and rewards align withour core values? Do our employees have a sharedunderstanding of why the company exists?McKinsey 7 S’s ModelShared ValuesFirst S – Shared ValuesTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 13. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 13StructureSystemsStyleStaffSkillsStrategySharedValuesStructure is the way the organization is structured and who reports to whom.KEY QUESTIONS How is the organization or team divided? What is the hierarchy? Is it stated or in-practice? How do various business units coordinateactivities? How do the individual team membersorganize and align themselves? Is decision making and control centralized ordecentralized? Where are the lines of communication? Are the lines of communication implicit orexplicit?McKinsey 7 S’s ModelStructureThird S – StructureTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 14. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 14StructureSystemsStyleStaffSkillsStrategySharedValuesStyle is the style of leadership adopted and the organization’s overall operating approach.KEY QUESTIONS How participative is the management andleadership style? How effective is that leadership? How good is management in makingdecisions? Where does management focus most of itstime and attention? Do employees/team members tend to bemore competitive or cooperative?How would the following groups describe ourorganization: yourself, employees,competitors, customers, vendors?If the 5 groups say different things, this isa sign to evaluate further as there couldbe a problemMcKinsey 7 S’s ModelStyleFifth S – StyleTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 15. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 15StructureSystemsStyleStaffSkillsStrategySharedValuesSkills is the actual skills and competencies of the employees working for the company.KEY QUESTIONS What are the strongest skills representedwithin the company or team? Are there any skills gaps? What is the organization or team known fordoing well? Do the current employees have the ability toperform their jobs? How are skills monitored and evaluated? What skills have we been hiring for? What skills do we need? What skills will we need in 1 to 2 years? What skills will we need in 2 years that wedon’t currently possess?McKinsey 7 S’s ModelSkillsSeventh S – SkillsTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 16. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 16Contents Overview 7S Deep Dives Templates
  • 17. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 17Insert Header7-S Model (TEMPLATE)StructureSystemsStyleStaffSkillsStrategySharedValuesTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 18. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 18Insert Header7-S Model (TEMPLATE)StructureSystemsStyleStaffSkillsStrategySharedValuesHard SSoft STHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 19. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 19Insert Header7-S Model (TEMPLATE ALTERNATE)StructureSystemsStyleStaffSkillsStrategy• Filler text filler text fillertext filler text• Filler text• Filler text• Filler text filler text fillertext filler text• Filler text• Filler text• Filler text filler text fillertext filler text• Filler text• Filler text• Filler text filler text fillertext filler text filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler text• Filler text filler text fillertext filler textSharedValuesTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 20. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 20Insert Header7-S Model (TEMPLATE ALTERNATE)SHAREDVALUESSTRATEGYSTRUCTURESYSTEM• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler textELEMENT ASSESSMENTSTYLESTAFFSKILLS• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler text• Filler text filler text filler text filler textfiller text filler textTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 21. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 21MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUMInsert Header7-S Model (TEMPLATE ALTERNATE)SYSTEMSSHAREDVALUESSTAFFSTRATEGY SKILLSSTRUCTURE STYLE• Filler text fillertext filler text• Filler text fillertext filler text• Filler text• Filler text fillertext filler text• Filler text fillertext filler text• Filler text• Filler text fillertext filler text• Filler text fillertext filler text• Filler text• Filler text fillertext filler text• Filler text fillertext filler text• Filler text• Filler text fillertext filler text• Filler text fillertext filler text• Filler text• Filler text fillertext filler text• Filler text fillertext filler text• Filler text• Filler text fillertext filler text• Filler text fillertext filler text• Filler textHard SSoft SELEMENTASSESSMENTSTATUSTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 22. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 22Insert Header7-S Model – Current State (TEMPLATE)SharedValuesStrategy Structure Systems Style Staff SkillsSharedValuesStrategyStructureSystemsStyleStaffSkillsSource: MindTools, 7S Worksheet, http://www.mindtools.com/pages/article/worksheets/7SDownload.htmTHIS IS A PARTIAL PREVIEWYou can download the full document at http://PPTLab.com.PPT Lab is a crowdsourced presentation design service.
  • 23. PPT Lab (www.PPTLab.com) – Crowdsourced Business Presentation Design Service 23PPT Lab (www.pptlab.com) is the only crowdsourcedpresentation design service. Get consulting-qualitypresentations at a fraction of the cost!Each month, we will create well over 50 slides of for our members.As a member, you will drive what business slides we create bysubmitting your own presentation projects to our team. Allpresentations will be created by a team of managementconsultants and follow the Consulting Presentation Framework.www.PPTLab.comsupport@pptlab.com