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Mc kenzie 7s framework

  1. 1. ORGANIZATIONAL ALIGNMENT: THE 7-S MODEL
  2. 2. INTRODUCTION  Tool for analysis and action.  Developed McKinsey&Co. consultants , Harvard Business School and Stanford Business School professors. 2
  3. 3. 7-S FRAMEWORK 3
  4. 4. 1. STRATEGY  Ways to achieve competitive advantage.  Examples.  Low-cost strategy through economic production or delivery  Product differentiation through distinct features or innovative sales. 4
  5. 5. 2. STRUCTURE  Ways in which task and people are specialized and divided, and authority is distributed.  Four main structures  Functional Structure  Divisional Structure  Matrix Structure  Network Structure 5
  6. 6.  Functional Structure 6
  7. 7.  Divisional Structure GM 7
  8. 8.  Matrix Structure 8
  9. 9.  Network Structure 9
  10. 10. 3. SYSTEMS  Formal processes and procedures to manage the organization.  Examples:  Performance Measurements  Reward Systems  Planning  Budgeting  Resource Allocation  Information System  Distribution System 10
  11. 11. 4. STAFFING  People, their background and competencies.  Organization’s approach to recruitment, selection, socialization, training and employee development. 11
  12. 12. 5. SKILLS  Distinctive competencies in the organization.  Can be of People, Management Practices, Systems and/or Technologies. 12
  13. 13. 6. STYLE  Leadership style of top management and overall operating style of organization.  Impacts norms followed by people, how they work and interact with each other and customers. 13
  14. 14. 7. SHARED VALUES  Core values shared in the organization and serve as guiding principles of what is important.  Helps focus attention and provides a broader sense of purpose. 14
  15. 15. USING THE 7-S MODEL  Each S is consistent with and reinforces the other S’s.  Recognize the full range of elements that need to be changed and focus on the ones that will have the greatest effects.  All seven variables are interconnected- to make progress in one, adjustments need to be made in others also.  No natural starting point for a change – it is decided by diagnosis of the alignment of the organization. 15
  16. 16. USING THE 7-S MODEL  Hard S’s (Easier to change)  Strategy  Structure &  Systems  Softer S’s (Harder to change directly and take longer)  Staffing  Skills  Style &  Shared Values 16
  17. 17. 17

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