This document provides a strategic analysis of Start-up X using McKinsey's 7S model. It identifies the company's strategic objectives of consolidating its business model, growing faster, and becoming the European leader in "delegate innovation." An analysis of the company's strengths and weaknesses is presented. The 7S model is then used to analyze the company's shared values, strategy, structure, systems, skills, staff, and style. Recommendations are provided for improving the company's structure, systems, culture/style, staff skills, and products to address weaknesses and leverage strengths. The biggest challenge to effective strategy is the CEO letting go of power to implement needed changes.

1. Start-up X : strategic analysis
using McKinsey’s 7S model
 The objective
 Strategic objectives
 The theoretical model : McKinsey’s 7S
 Strengths / Weaknesses
 The leverage points

2. The objective
Start-
up
SME
How to negotiate the turn?

3. Start-up X: strategic objectives
Consolidate the present business model
Grow faster
Become the European leader of
« delegate innovation »
Continue to build a business federation
based on an« equity for services » model

4. Strategic Analysis : the 7S model
Shared
values
Strategy
Systems
Style
Culture
Staff
Skills
Structure
« Hard » variables
« Soft » variables
 Identification of skills and internal business potential
 Holistic approach: interrelation and synchronization between variables
Source : Peters & Waterman

5. Strengths / Weaknesses analysis
STRENGTHS
• Uniqueness of the offer
• Quality of the team & motivation
• Quality of achievements -
reputation
• Duration of customer
relationships
• Strong visibility:
▫ Projects for clients
▫ Internet
• Network of relationships -
ecosystem
• Tax optimization
• Institutional funding
WEAKNESSES
• Lack of synergies between
activities
• Tailor-made business  lack of
industrialization
• Long sales cycles
• Lack of a “figures and results”
culture
• Lack of a sales approach
• Lack of hierarchy
▫ No career strategy
▫ Lack of clarity in the decision
making process
▫ Lack of accountability and
evaluation
• Limited number of customers
/industries
• Limited area (Paris, FR)

6. Areas for improvement: a complex
balance
Strengths Weaknesses
Capitalize on
strengths
Minimize
weaknesses

7. Strategy
• Develop
networks
throughout
France
• Duplicate the
business model in
other countries
• Drain new
business via the
existing U.S. office
• Food
• Cosmetics
• Electronics
• Media…
• 3D visualization
systems
• Wireless guiding
systems
• Suite of online
tools
• Intelligence portal
Industrialize
existing
products
New target
markets
Extended
territories
Expand
internationally

8. Structure Founder and CEO
First Circle: senior
project leaders + Mktg.
Director + CFO + VP
strategy
Second circle: new
recruits, junior
consultants, functiona
l roles
PDG
Managing
director
Lead Project
Designer
Lead Project
Designer
Project
Designer
Junior
Product
Designer
Consultant
Marketing Sales Finance IT Design
 Create clear and shared hierarchical
levels
 Delegate management to a
Managing Director (eg VP strategy)
 Create a sales function
 Establish explicit responsibilities
 Clarify the decision-making process

9. Systems
Collective
•Share a vision
•Define collective goals
Individual
•Share the results to be
achieved
•Set individual goals
Collective
•Global monitoring tools
•Shared cash information
•Achievements / forecasts
Individual
•Individual monitoring
tool
•Cash information
•Achievements /
forecasts
Definition of Objectives
Performance Monitoring
Collective
•Allocation procedure
•Defining the person(s)
responsible for
allocation
Individual
•Resource
requirements
•Follow a defined
procedure
Collective
• Collective impact on
individual performance
• Profit sharing
Individual
•Who evaluates the
performances?
•Rewards / punishment
system
•Variable bonus system
Resource Allocation
Performance Evaluation

10. Culture / Style – the 9 aphorisms
X is a participative
monarchy
Delegation is necessary
but ...
the founder fears of
being deprived of his
company
Fear of "brain drain" if
the structure is more
formalized
The leadership of skills
needs to be channeled in
order to be effective
Reactivity does not
mean objectivity
A collective decision is
indecision without a
responsible
(hence irresponsible)
Acquire strong skills
(sales, management)
make the choice of real
decision makers
Share networks to
increase business
efficiency
Do not allow
exemplarity and search
for excellence to become
snob
FINDINGS TIPSLEADERSHIP STYLE

11. Staff
* Train staff in sales
* Train staff in
management
Skills
* Professionalize the
team with ad hoc
training programs
* Reduce inbreeding
External
training
* Bonus System
* Valorization of
individual skills
* Increased salaries
* Job titles
Valorization
* Provide career
paths
* Help realize
people aspirations
Career

12. Skills
Industrialize
Sell
Empower / delegate
Communicate / share
Finance

13. Products Share Not snob
Risk
evaluation
Decision
Organisatio
n
Cool
Shared values
Innovation Openness Quality
Audaciousn
ess
Responsibili
ty
Agility Cool
But also…

14. Conclusions
• The biggest obstacle to the establishment of an effective
strategy is often the CEO himself/herself
• He/she feels instinctively the need for change but he/she
is afraid change might affect the key success factors of
his/her company and might taint his/her power
• A successful strategy is a fine-tuning of all 7S system’s
variables
• The most successful strategies place great emphasis on
"soft" variables of the 7S model

15. THANK YOU