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Strategy Frameworks & Tools Reference Guide

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Strategy Frameworks & Tools Reference Guide

[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]

This comprehensive presentation contains 30 common frameworks, models and tools for strategic planning.

A detailed summary is provided for each strategy framework, model or tool.

The frameworks in this deck span across the key domains of strategic planning. They include stakeholder analysis, internal analysis, environmental analysis, industry analysis, market analysis, competitive analysis, strategy development and strategy implementation.

INCLUDED FRAMEWORKS, MODELS & TOOLS:

1. Power/Interest Grid
2. VRIO Framework
3. Porter's Value Chain
4. PESTEL Analysis
5. BCG Growth/Share Matrix
6. GE-McKinsey Matrix
7. Porter's Five Forces
8. Industry Life Cycle Model
9. Competitive Profile Matrix
10. SWOT Analysis
11. Porter's Generic Strategies
12. Value Disciplines Model
13. Ansoff Matrix
14. BCG Strategy Palette
15. Blue Ocean Strategy
16. Greiner's Growth Model
17. McKinsey's Three Horizons of Growth
18. Disruptive Innovation (Christensen)
19. Value Proposition Canvas
20. Business Model Canvas
21. Core Competencies Model (Hamel & Prahalad)
22. Risk Management Process
23. Probability-Impact Matrix
24. Big Hairy Audacious Goal (BHAG)
25. Vision, Mission & Values
26. SMART Objectives
27. Hoshin Planning
28. Balanced Scorecard
29. McKinsey's 7-S Framework
30. Kotter's 8-Step Process for Leading Change

These frameworks and templates are used in many strategy consulting firms. With this comprehensive document in your back pocket, you can find a way to address just about any strategic planning challenge that can arise in your organization.

The level of detail varies by framework, depending on the nature of the model or tool. Examples and templates are provided.

[To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]

This comprehensive presentation contains 30 common frameworks, models and tools for strategic planning.

A detailed summary is provided for each strategy framework, model or tool.

The frameworks in this deck span across the key domains of strategic planning. They include stakeholder analysis, internal analysis, environmental analysis, industry analysis, market analysis, competitive analysis, strategy development and strategy implementation.

INCLUDED FRAMEWORKS, MODELS & TOOLS:

1. Power/Interest Grid
2. VRIO Framework
3. Porter's Value Chain
4. PESTEL Analysis
5. BCG Growth/Share Matrix
6. GE-McKinsey Matrix
7. Porter's Five Forces
8. Industry Life Cycle Model
9. Competitive Profile Matrix
10. SWOT Analysis
11. Porter's Generic Strategies
12. Value Disciplines Model
13. Ansoff Matrix
14. BCG Strategy Palette
15. Blue Ocean Strategy
16. Greiner's Growth Model
17. McKinsey's Three Horizons of Growth
18. Disruptive Innovation (Christensen)
19. Value Proposition Canvas
20. Business Model Canvas
21. Core Competencies Model (Hamel & Prahalad)
22. Risk Management Process
23. Probability-Impact Matrix
24. Big Hairy Audacious Goal (BHAG)
25. Vision, Mission & Values
26. SMART Objectives
27. Hoshin Planning
28. Balanced Scorecard
29. McKinsey's 7-S Framework
30. Kotter's 8-Step Process for Leading Change

These frameworks and templates are used in many strategy consulting firms. With this comprehensive document in your back pocket, you can find a way to address just about any strategic planning challenge that can arise in your organization.

The level of detail varies by framework, depending on the nature of the model or tool. Examples and templates are provided.

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Strategy Frameworks & Tools Reference Guide

  1. 1. © Operational Excellence Consulting. All rights reserved. This presentation contains 30 common frameworks, models and tools for strategic planning. They include stakeholder analysis, internal analysis, environmental analysis, industry analysis, market analysis, competitive analysis, strategy development and strategy implementation. Strategy Frameworks & Tools Reference Guide Strategic Planning Frameworks, Models and Tools Reference Guide
  2. 2. © Operational Excellence Consulting. All rights reserved. 2 Contents 1. Power/Interest Grid 16. Greiner’s Growth Model 2. VRIO Framework 17. McKinsey’s Three Horizons of Growth 3. Porter’s Value Chain 18. Disruptive Innovation (Christensen) 4. PESTEL Analysis 19. Value Proposition Canvas 5. BCG Matrix 20. Business Model Canvas 6. GE-McKinsey Matrix 21. Core Competencies Model (Hamel & Prahalad) 7. Porter’s Five Forces 22. Risk Management Process 8. Industry Life Cycle Model 23. Probability-Impact Matrix 9. Competitive Profile Matrix 24. Big Hairy Audacious Goal (BHAG) 10. SWOT Analysis 25. Vision, Mission & Values 11. Porter’s Generic Strategies 26. SMART Objectives 12. Value Disciplines Model 27. Hoshin Planning 13. Ansoff Matrix 28. Balanced Scorecard 14. BCG Strategy Palette 29. McKinsey’s 7-S Framework 15. Blue Ocean Strategy 30. Kotter’s 8-Step Process for Leading Change NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg
  3. 3. © Operational Excellence Consulting. All rights reserved. 3 The Power/Interest Grid for Stakeholder Prioritization is a useful tool for stakeholder analysis in the strategic planning process The Power/Interest Grid for Stakeholder Prioritization POWER Monitor INTEREST Keep Informed Keep Satisfied Manage Closely High Low Low High Source: Based on Eden & Ackermann, 1998
  4. 4. © Operational Excellence Consulting. All rights reserved. 4 The VRIO framework is a useful internal analysis tool to discover sources for sustainable competitive advantage VALUE RARITY IMITABILITY ORGANIZATION V O I R “Is the firm able to exploit an opportunity or neutralize an external threat with the resource/capability?” “Is control of the resource/capability in the hands of a relative few?” “Is it difficult to imitate, and will there be significant cost disadvantage to a firm trying to obtain, develop, or duplicate the resource/capability?” “Is the firm organized, ready, and able to exploit the resource/capability?" "Is the firm organized to capture value?” VRIO Framework
  5. 5. © Operational Excellence Consulting. All rights reserved. 5 Porter’s Value Chain – Introduction What It Is § Porter’s Value Chain is a strategic management tool companies use to analyze and improve the value they offer their customers. § The value chain is a tool for identifying key processes in your business, assessing your firm’s competitive capabilities in each and thereby assessing wherein lies the source of your competitive advantage. Why We Use It § Companies use this management tool to gain an advantage over their competitors. § Improvements in the value delivery process can be found in any activity along the value chain. § Efficiency and effectiveness in these activities could lead to a sustained competitive advantage. § Companies often choose this model because it focuses on the customers. How To Use It § Follow these steps when using Porter's value chain: 1. Find the sub-activities that relate to each primary activity 2. Find the sub-activities that relate to each support activity 3. Find connections between activities 4. Constantly look for new ways to add value § Most organizations that achieve long-term success do so by constantly looking for ways to offer more value to their customers. When To Use It § You should use value chain analysis when you need to clarify which activities are most important to your business success—in other words, which activities are critical success factors and how you can improve your capabilities in them.
  6. 6. © Operational Excellence Consulting. All rights reserved. 6 Analysis of the Value Chain to establish potential match for M&A or strategic alliances Porter’s Value Chain – Assessing Potential Match for M&A or Strategic Alliances
  7. 7. © Operational Excellence Consulting. All rights reserved. 7 The BCG Matrix – Description of the four quadrants ? QUADRANT DESCRIPTION Stars Are products that enjoy a relatively high market share in a strongly growing market. They are (potentially) profitable and may grow further. It is therefore advisable to invest in these products. Cash Cows Are products that are extremely profitable, and no extra effort or investment is needed to maintain the status quo. A product becomes a cash cow when the growth of a product’s market decreases but the company’s market share remains high and stable. Question Marks Are products that have high market growth but small market share, and so their growth rate is uncertain. Investments to generate further growth may or may not yield big results in the future. Additional investigation into how and where to invest is advised. Dogs Should be dropped or divested when they are not profitable. If profitable, do not invest in them, but make the best of their current value. This may even mean selling the product’s operations and/or brand. BCG Matrix Source: Adapted from BCG
  8. 8. © Operational Excellence Consulting. All rights reserved. 8 BCG Matrix – Example of Apple Market Growth Relative Market Share High Low Small Large ? BCG Matrix – Example iPhone MacBook iPad iPod Apple Watch Apple TV AirPods iMac
  9. 9. © Operational Excellence Consulting. All rights reserved. 9 The GE-McKinsey Matrix provides a systematic approach to prioritize investments among its business units GE-McKinsey Matrix Low Medium High Low Medium High Industry Attractiveness Business Unit Strength Invest/ Grow Selectivity/ Earnings Harvest/ Divest Invest/ Grow Invest/ Grow Selectivity/ Earnings Selectivity/ Earnings Harvest/ Divest Harvest/ Divest Source: Adapted from GE-McKinsey
  10. 10. © Operational Excellence Consulting. All rights reserved. 10 Porter’s Five Forces analysis can be used to better understand the industry in which it operates Porter’s Five Forces 1. New Entrants Are there entry barriers for new contenders? 2. Substitutes How easily can your product or service be substituted with a different type of product or service? 3. Buyers To what extent can buyers bargain? 4. Suppliers What level of influence do suppliers have? 5. Existing competitors What advantages do competitors have? Source: Adapted from Porter
  11. 11. © Operational Excellence Consulting. All rights reserved. 11 Industry Life Cycle Model is the portrayal of different life stages or phases that companies experience in the industry Industry Life Cycle Model Introduction Growth Maturity Decline SALES TIME
  12. 12. © Operational Excellence Consulting. All rights reserved. 12 The Competitive Profile Matrix assesses how well positioned your company is in each segment Competitive Profile Matrix Critical success factors in UK engineering niche market Weightage The company Competitor A Competitor B Market share 15% 5 3.3 2 Cost factors 35% 4 3.5 2.5 Differentiation factors: Product capability and range 15% 4 4.5 3 Product reliability 15% 4 4 2.5 Engineering service network 10% 5 3.5 2.5 Customer service 10% 3 3 2 Competitive position 100% 4.2 3.6 2.5 Scoring: 1 = Weak, 2 = Tenable, 3 = Favorable, 4 = Strong, 5 = Dominant ILLUSTRATIVE Source: Adapted from Evans, 2014
  13. 13. © Operational Excellence Consulting. All rights reserved. 13 SWOT Analysis – Introduction What It Is § A SWOT analysis is a strategic planning technique that you can use to identify a company’s strengths, weaknesses, opportunities and threats. § It can provide new insights, such as where the company can improve compared to its competitors. § This may help you improve the organization, increase profitability and achieve more success overall. § It is often helpful to perform SWOT analyses frequently to ensure you monitor any changes accordingly. § SWOT analyses evaluate both internal and external factors that affect an organization. Strengths and weaknesses refer to internal factors and opportunities and threats refer to external factors. Why We Use It § A SWOT analysis provides helpful information for matching resources and capabilities to the competitive environment in which the organization operates. When To Use It § The model can be used as an instrument for devising and selecting strategy, and is applicable in any decision-making situation, provided the desired objective has been clearly defined. § The SWOT analysis is also frequently used to assess the same factors about the organizations, products and services of your competitors. § The SWOT analysis is often used in conjunction with other strategy tools, such as the PESTEL, Ansoff matrix and Porter’s 5 Forces frameworks, to support more robust assessments of drivers of business growth.
  14. 14. © Operational Excellence Consulting. All rights reserved. 14 Situation Analysis can be broken down into internal and external analysis Situation Analysis Situation Analysis Internal Analysis Strength External Analysis Weaknesses Opportunities Threats
  15. 15. © Operational Excellence Consulting. All rights reserved. 15 Porter’s generic strategies – Examples TARGET SCOPE COMPETITIVE ADVANTAGE COST LEADERSHIP IKEA, Southwest Airlines, Wal-Mart, McDonald’s, EasyJet, Costco and Amazon. DIFFERENTIATION Apple, Harley-Davidson, Nespresso, LEGO, Nike and Starbucks. Broad Narrow Cost Distinctiveness COST FOCUS Home Depot, SanDisk, Claire’s, Monster and Smart. DIFFERENTIATION FOCUS Rolls Royce, Honda motor cycles, Omega, Prada and Razer.
  16. 16. © Operational Excellence Consulting. All rights reserved. 16 There are three generic value disciplines that enable an organization to deliver to its customers Value Disciplines Model Source: Adapted from Treacy & Wiersema, 1995 Performance level of market leaders Minimal performance level in the industry PRODUCT LEADERSHIP (“Best Product”) CUSTOMER INTIMACY (“Best Total Solution”) OPERATIONAL EXCELLENCE (“Best Total Cost”) Product Differentiation Customer Responsiveness Operational Competence
  17. 17. © Operational Excellence Consulting. All rights reserved. 17 The Ansoff Growth Matrix offers a logical way of determining the scope and direction of a firm’s strategic development in the marketplace Ansoff Growth Matrix Markets Market Penetration Sell more of the same products and services in existing markets. This growth vector indicates growth through increase of market share for the present product- markets. Products Product Development Sell new products and services into existing markets. This growth vector means growth by developing new products to replace or complement existing products. Market Development Sell more of the same products and services in new markets. Diversification Sell new products and services into new markets. New Existing Existing New 2 4 1 3 1 4 Low risk High risk Relative risk: Increasing Risk
  18. 18. © Operational Excellence Consulting. All rights reserved. 18 The BCG Strategy Palette helps leaders match their approach to their particular business environment and execute strategy effectively BCG Strategy Palette Source: Adapted from BCG ADAPTIVE CLASSICAL SHAPING VISIONARY RENEWAL MALLEABILITY UNPREDICTABILITY High Low High Low H A R S H N E S S High Low
  19. 19. © Operational Excellence Consulting. All rights reserved. 19 Blue Ocean Strategy focuses attention on the creation of uncontested marketplaces through value innovation Red Ocean Thinking Blue Ocean Thinking Industry Compete in existing market space Create uncontested market space Strategy Best the competition Make competition irrelevant Market Exploit existing demand Create and capture new demand Resources Make the value-cost trade-off Break the value-cost trade-off Organization Choose between differentiation or cost Simultaneous pursuit of differentiation and cost Offerings Maximize value within industry boundaries Offer total solution that transcends the industry Blue Ocean Strategy Source: Adapted from Kim & Mauborgne
  20. 20. © Operational Excellence Consulting. All rights reserved. 20 Netflix uses the Blue Ocean strategy to create new demand and pursues differentiation with low cost to open up new market space Blue Ocean Strategy – Example of Netflix Netflix became the first online streaming content provider by offering a new value curve and de-emphasizing the traditional attributes. P a r e n t a l C o n t e n t F i l t e r i n g C o m m e r c i a l s High Low N e w s P r o g r a m s L i v e S p o r t s P r i c e T e c h S u p p o r t S t a f f I n s t a l l a t i o n P r o c e s s C o m p l e x i t y M o v i e S e l e c t i o n D e v i c e s C a n W a t c h O n A b i l i t y T o V i e w F u l l S e a s o n s A b i l i t y T o W a t c h F r o m A n y L o c a t i o n Netflix Cable TV Offering Level Eliminate Reduce Raise Create Value Attributes
  21. 21. © Operational Excellence Consulting. All rights reserved. 21 Greiner’s growth model describes the phases that organizations pass through as they grow, regardless of the type of organization Greiner’s Growth Phases Source: Adapted from Greiner, 1998 Time Phase 1 Growth through creativity Organization Size Phase 6 Growth through alliances Phase 5 Growth through collaboration Phase 4 Growth through co- ordination Phase 3 Growth through delegation Phase 2 Growth through direction Leadership crisis Autonomy crisis Control crisis Red tape crisis Growth crisis Small Large Young Mature
  22. 22. © Operational Excellence Consulting. All rights reserved. 22 The Three Horizons of Growth Model helps to distinguish between the embryonic, emergent and mature phases of a business’s life cycle Source: Adapted from McKinsey Three Horizons of Growth Model Horizon 1: Extend and defend core business: Activities that are most closely aligned to your current business. Horizon 2: Build emerging businesses: Taking what you already have, and extending it into new areas of revenue-driving activity. Horizon 3: Create viable options: Introducing entirely new elements to your business that don’t exist today. 1 – 3 years 2 – 5 years 5 – 12 years Time (Years) Value
  23. 23. © Operational Excellence Consulting. All rights reserved. 23 Disruptive Innovation – Introduction What It Is § Disruptive innovation has been a buzzword since Clayton Christensen coined it back in the mid 1990s to describe the way in which new entrants in a market can disrupt established businesses. § According to Christensen, disruptive innovation is the process in which a smaller company, usually with fewer resources, is able to challenge an established business (often called an “incumbent”) by entering at the bottom of the market and continuing to move up-market. § Although the concept of disruptive innovation was received as almost being a radical innovation in itself, it is a concept that can help explain certain developments in markets and industries. § Disruptive innovation is a method that helps identify and manage potentially disruptive innovations. § Examples of companies that use disruptive innovation strategy: Uber, Netflix, Spotify, Toyota Why We Use It § Using disruptive innovation helps firms work out what they can do to avoid displacement brought on by radical, technological innovations or how they can pursue such innovations themselves. § Whether you are an incumbent intent on defending your market share and profits or you are a new entrant seeking to grab a piece of the pie, understanding disruptive innovation as a process can offer valuable insights you can incorporate into your business plan. When To Use It § Disruptive innovation is most useful in highly dynamic markets and in situations where new technologies or technological innovations are emerging.
  24. 24. © Operational Excellence Consulting. All rights reserved. 24 Disruptive Innovation is an innovation that leads to a product or service designed for a new set of customers PRODUCT PERFORMANCE Higher Lower PERFORMANCE CUSTOMERS WILL PAY FOR Incumbent’s sustaining trajectory Entrant’s disruptive trajectory High end of the market Low end of the market Mainstream MOST PROFITABLE LEAST PROFITABLE Time Disruptive Innovation Source: Adapted from Christensen, 1997
  25. 25. © Operational Excellence Consulting. All rights reserved. 25 Entire industries have been disrupted by companies who offer the exact same thing in a more convenient form Netflix, Spotify, Uber: None of these companies rose to the top by inventing a new product or service. They offered you the exact same thing their competitors did — just in a simpler way. Uber Uber disrupted the taxi industry by getting you from Point A to Point B without having to wait out in the rain for a cab. Spotify Spotify disrupted the digital music industry by allowing you to stream anyone’s music without having to own it yourself. Netflix Netflix disrupted Blockbuster by giving us access to any movie we wanted without late fees. Source: Adapted from Hubspot Disruptive Innovation – Examples
  26. 26. © Operational Excellence Consulting. All rights reserved. 26 The Value Proposition Canvas allows us to dive deeper into the Value Proposition and Customer Segments of the business model - Zoom ? ? ? ? ? ? ? Are you creating value for your business? The Business Model Canvas makes explicit how you are creating and capturing value for your business. + Zoom Are you creating value for your customer? The Value Proposition Canvas makes explicit how you are creating value for your customers. Zoom out to the bigger picture to analyze if you can profitably create, deliver and capture value around this particular customer value proposition. Zoom in to the detailed picture to investigate if the customer value proposition in your business model really creates value for your customer. Source: Adapted from Strategyzer
  27. 27. © Operational Excellence Consulting. All rights reserved. 27 Example: Starbucks Business Model KP KA VP CR CS KR CH C$ R$ Coffee Growers Specialized Coffee M/C Makers Coffee & Milk Rent Marketing & R&D Marketing R&D Packaging & Bottling Plants People Unique Coffee Co-created with Customers Retail stores Starbucks Rewards Starbucks Reserve Supply Chain Management People Costs Starbucks App Store Design Students Mobile Professionals Coffee Aficionados Third Place between the Home and Office A Place to Hangout with Friends, Do Homework Retail Sales Retail Sales Retail Sales Brand
  28. 28. © Operational Excellence Consulting. All rights reserved. 28 The Core Competencies Model is a strategic tool to determine the unique assets that can be used to create and offer value to customers Core Competencies Model Core Competencies Market Premier plus 10 Mega opportunities New Existing Existing New Fill in the blanks White spaces Source: Adapted from Hamel & Prahalad, 1994
  29. 29. © Operational Excellence Consulting. All rights reserved. 29 Examples of core competencies Apple Making user-friendly computer interfaces and design 3M Persistently innovating adhesives and substrates Rolex Design and production of high-status watches Sony Miniaturization of electronic equipment
  30. 30. © Operational Excellence Consulting. All rights reserved. 30 The Probability-Impact Matrix is a tool that helps in the process of quantifying levels of risk Probability-Impact Matrix Impact of Risk Probability of Occurrence Low Probability/High Impact: Contingency Planning High Probability/High Impact: Strategic Planning High Low Low High Low Probability/Low Impact: Planning Not Required High Probability/Low Impact: Operational Planning
  31. 31. © Operational Excellence Consulting. All rights reserved. 31 In articulating a vision, organizations should define its core ideology and set a 10-to-30-year BHAG (big, hairy, audacious goal) Big, Hairy, Audacious Goal Core ideology § Core values § Core purpose Envisioned Future § 10-to-30-year BHAG (Big, Hairy, Audacious Goal) § Vivid description Source: Adapted from Collins & Porras, 1996 § Core values are your firm’s “essential and enduring tenets— timeless guiding principles that require no external justification” § Core purpose is your firm’s “fundamental reason for being”
  32. 32. © Operational Excellence Consulting. All rights reserved. 32 BHAG: The great success of Facebook is based on long-term thinking and strategic foresight Facebook …Search …Groups …Video Messenger WhatsApp Instagram 3 5 10 years Connectivity …Drones …Satellites …Laser …Telco Infra … Virtual reality/ augmented reality …Mobile VR …Rift …Touch …Social VR …AR Tech … Artificial intelligence …Vision …Language …Planning … Source: Adapted from Lewrick et al., 2018 Big, Hairy, Audacious Goal
  33. 33. © Operational Excellence Consulting. All rights reserved. 33 Vision, Mission & Values – The big picture Vision (“Where are we going?”) Mission (“What are we doing to get there?”) Core Values (“What are our beliefs, principles and philosophy?”) Current State (“Where are we now?”) Vision, Mission & Values
  34. 34. © Operational Excellence Consulting. All rights reserved. 34 Hoshin Planning is a strategic planning model that uses a catchball process for goal alignment and deployment Hoshin Generation Hoshin Deployment Hoshin Implementation Hoshin Evaluation Setting the annual goals of a company and its departments. Goals address both processes and outcomes and are usually developed by senior management in consultation with their subordinates. Entails establishing lower-level goals and plans, both within and across departments through catchball. As the hoshin cascades through each department, activities become more bite-sized. Each level must translate the hoshin goal and means into meaningful action. Refers to the year-end assessment of each hoshin. Were process and outcome goals achieved? If so, ask why five times. If not, ask why five times. What did we learn? How can we strengthen our capabilities? Refers to the management activities required to implement the hoshins developed and involves applying the various PDCA cycles. There should be formal and informal reviews throughout the year to make the current status and countermeasures visible. Hoshin Planning Process Hoshin Planning Process Source: Adapted from Pascal Dennis, 2015
  35. 35. © Operational Excellence Consulting. All rights reserved. 35 Hoshin planning process incorporating PDCA cycles Determine current condition Prioritize and select breakthrough objectives Determine desired condition Deploy the plan (catchball) Create plan to achieve breakthrough objectives Annual review: Reflection and learning points Confirm and implement plan (A3 report) Review plan (weekly, monthly, biannual) P D C A P D C A P D C A Note that there is a 3rd PDCA cycle over a 3-5 year horizon 2nd PDCA cycle 1st PDCA cycle Hoshin Planning comprises overlapping PDCA cycles. Hoshin Planning Process – PDCA Cycles Source: Adapted from Pascal Dennis, 2015
  36. 36. © Operational Excellence Consulting. All rights reserved. 36 The Balanced Scorecard focuses the entire organization on financial and non-financial outcomes FINANCIAL BUSINESS PROCESSES Vision and Strategy To succeed financially, how should we appear to our shareholders? LEARNING & GROWTH CUSTOMERS To achieve our vision, how will we sustain our ability to change and improve? To achieve our vision, how should we appear to our customers? To satisfy our shareholders and customers, what business processes must we excel at? Source: Based on Kaplan & Norton The Balanced Scorecard
  37. 37. © Operational Excellence Consulting. All rights reserved. 37 The McKinsey 7-S framework is most often used as a tool to assess and monitor changes in the internal situation of an organization Source: Adapted from McKinsey Structure Systems Style Staff Skills Strategy Shared Values McKinsey 7-S Framework
  38. 38. © Operational Excellence Consulting. All rights reserved. 38 The 7-S framework can best be used as a matrix for assessing the impact of the proposed strategy of the organization Staff Skills Style Shared Values Systems Structure Strategy Strategy - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Structure - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Systems - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Shared Values - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Style - - - - - - - - - - - - - - - - - - - - Skills - - - - - - - - - - Staff Example – Food4U Supermarket is moving away from its traditional middle-of-the-road retail model towards an upscale, fresh, full-service, convenience-oriented grocery and fresh market. An initial decision to hire specialists may have consequences reaching far beyond the scope of the strategy at it was proposed. Need for specialists: e.g. butcher, bread, baker, food display specialists Potential conflict: (older) specialist vs. (younger) temporary employees
  39. 39. © Operational Excellence Consulting. All rights reserved. 39 Kotter’s 8 Steps of Change provides a roadmap for advancing a culture of performance excellence Kotter’s 8-Step Change Model Source: Adapted from John Kotter, 1996 & 2014 1 Sustain Acceleration Institute Change Generate Short- term Wins Enable Action By Removing Barriers Enlist A Volunteer Army Form A Strategic Vision Build A Guiding Coalition Establish A Sense Of Urgency KOTTER’S 8-STEP MODEL FOR LEADING CHANGE
  40. 40. © Operational Excellence Consulting. All rights reserved. 40 Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg

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