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7S MC KINSEY: Management Tool
1. Samini Ferdous a/p Sandrakantham
Peunding Latihan Kanan
Kluster Pengajian Pembangunan dan Inovasi
samini@intanbk.intan.my
INTAN JALAN ELMU
7’S MCKINSEY
MODEL
1
KURSUS MANAGEMENT
DIAGNOSTIC TOOLS
2. 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
• Conclusion
2
3. 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
3
4. 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
7. THE HARD SS & SOFT SS
Strategy
Structure
System
Shared Values
Skills
Staff
Style
HARD Ss SOFT Ss
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8. STRATEGY
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9. 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 ?
9
10. 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?
10
11. 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
13. SHARED VALUES
Is the interconnecting center of McKinsey's
model
Core beliefs and expectations that people have
in the organization
Organisation 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
14. 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?
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15. 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?
15
16. 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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17. 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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Hard ( must have , cant compromise)
-Identifed and influenced more easily
-Driven by the organisation charts and reporting lines within business
-May include the systems used to get work done
Soft (the people in the org, can be flexible)
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- By nature more difficult to manage and may be affected by the culture of the organisation
- Provides the support structure for the successful implementation of any change
They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well.
The relative importance of each factor may vary over time.
What do we do about our mission?
PLKN
What do we do about our mission?
PLKN
What do we do about our mission?
PLKN
Case of Apple
Google
Discussion (PLKN)
Discussion (PLKN)
Structure : org chart
Vision & mission :
Strategies :
System (centralised / decentralised)
Shared values :
Staffs : army & ex-army as the trainers,
Skill :
Style :