Mc kinsey 7 s model


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Mc kinsey 7 s model

  1. 1. MC-KINSEY 7 S MODEL <br />AMIT KUMAR ROY<br />REG. NO: 1014370005<br />
  2. 2. INTRODUCTION:-<br />MC KINSEY is a global management consulting firm & the trusted advisors to the worlds leading businesses, government, and institutions.<br /><ul><li>Founded by James o. Mckinsey in 1926.
  3. 3. The 7 S framework is a management model developed by Robert J. Waterman & Tom Peters (also developed MBWA i.e management by walking around).
  4. 4. The model is most often used as tool to assess & monitor changes in the internal situation on organisation.</li></li></ul><li>BASIS OF 7 S MODEL<br />The model is based on theory that, for an organisation to perform well, the 7 elements need to be aligned and mutually reinforcing.<br /><ul><li>The model can be used to identify the prerequisites for an improved performance & to maintain the alignment during change such as restructuring, organisatioinal merger.
  5. 5. It can be used to understand how the organisational elements are inter-related and to ensure that wider impact of change in one area is taken into consideration.</li></li></ul><li>The 7 ELEMENTS<br />HARD ELEMENTS :<br /><ul><li>STRATEGY.
  6. 6. STRUCTURE.
  7. 7. SYSTEMS.
  8. 8. Hard elements are those which can be easily identified and directly influenced by mgmt.</li></ul>SOFT ELEMENTS:<br /><ul><li>SHARED VALUES.
  9. 9. SKILLS
  10. 10. STYLES
  11. 11. S.TAFF.
  12. 12. Soft elements are less tangible & more influenced by culture.</li></li></ul><li>MC-KINSEY MODEL 7S<br /><ul><li>HARD ELEMENTS.
  13. 13. SOFT ELEMENTS</li></li></ul><li>MC- KINSEY HARD ELEMENTS:-<br />HARD ELEMENTS:<br /><ul><li>STRATEGY: the plan devised to maintain and build competitive advantage over the competition .
  14. 14. STRUCTURE: the way the organization is structured and who reports to whom .
  15. 15. SYSTEM: the daily activities and procedures that staff members engage in to get the job done </li></li></ul><li>MC-KINSEY SOFT ELEMENTS:-<br /><ul><li>SHARED VALUES:- called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.
  16. 16. STYLE:- the style of leadership adopted .
  17. 17. STAFF:- the employees and their general capabilities.
  18. 18. SKILLS:- the actual skills and competencies of the employees working for the company .</li></li></ul><li>BENEFITS OF THE MODEL<br /><ul><li>Improves the performance of a company.
  19. 19. Examines the likely effects of future changes within a company.
  20. 20. Align departments & processes during a merger or acquisition.
  21. 21. Determines how best to implement a proposed strategy</li></li></ul><li>APPLICATION OF 7 S MODEL:-<br /><ul><li>To understand how the organizational elements are interrelated, & to ensure that the wider impact of changes made in one area is taken into consideration.
  22. 22. To help identify what needs to be realigned to improve performance, or to maintain alignment (and performance) during other types of change.
  23. 23. To identify gaps & inconsistencies between the current position & the future position of the company.</li></li></ul><li>APPLICATION CONTINUES:-<br />Whatever the type of change – restructuring, new processes, organizational merger, new systems, change of leadership, and so on – the model can be used to understand how the organizational elements are interrelated, and so ensure that the wider impact of changes made in one area is taken into consideration .<br />We can use the 7S model to help analyze the current situation (Point A), a proposed future situation (Point B) and to identify gaps and inconsistencies between them. It's then a question of adjusting and tuning the elements of the 7S model to ensure that your organization works effectively <br />
  24. 24. DRAWBACKS OF 7 S MODEL:-<br /><ul><li>The external environment is not mentioned in the McKinsey 7S Framework, although the other variables do exist & that only the most crucial variables are depicted in the model.
  25. 25. The notion of performance or effectiveness is not made explicit in the model.</li></li></ul><li>CLOSURE NOTE:-<br /><ul><li>The McKinsey 7Ss model is one that can be applied to almost any organizational or team effectiveness issue.
  26. 26. The McKinsey 7S model can be applied to elements of a team or a project as well. The alignment issues apply, regardless of how you decide to define the scope of the areas we study.</li></li></ul><li>INDUSTRY ATTRACTIVENESS<br />Manage Selectively for Earnings<br />Invest<br />Invest<br />Manage Selectively for Earnings<br />Harvest or Divest<br />Invest<br />BUSINESS STRENGTH<br />Manage Selectively for Earnings<br />Harvest or Divest<br />Harvest or Divest<br />Mc-Kinsey/GE multifactor matrix:-<br /><ul><li>Along with GE </li></ul>Mc kinsey proposed multifactor portfolio marix<br />
  27. 27. REFERENCES<br /><ul><li>Concepts in Strategic Management & Business Policy- Thomas L. Wheelen / David Hunger.
  28. 28.
  29. 29.
  30. 30. Strategic Management- concepts & cases – Upendra Kachru.
  31. 31.
  32. 32. Strategic Management concepts – AzharKazmi.</li></li></ul><li>AMIT KUMAR ROY<br />REG. NO:- 101437005<br />