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The McKinsey 7S Framework
How do you go about analyzing how well your organization is positioned
to achieve its intended o...
 Developed in the early 1980s by Tom Peters and Robert Waterman,
two consultants working at the McKinsey & Company consul...
You need to ask yourself where you are
now and where you want to be in the
future
The model will help you assess these
elements with searching questions
1.Structure
A successful organization may make
temporary structural changes to cope
with specific strategic tasks without
...
What it really means:
Organizational structure is your
hierarchy or your organizational
chart
Ask yourself this
How should an organization be
organized?
Functional Structure Divisional Structure Matrix Structure
Func...
2. Strategy
Strategy determines how you’re
gonna beat your competitors and
succeed in your mission
What will the company do?
Market Penetration Product Development Market Development Diversification
This strategy involves...
Coca-Cola
Market Penetration Product Development Market Development Diversification
Due to the incredible strength
of Coca...
Device Type: Desktop (July 2016)
Source:Netmarketshare.com
3.Systems
Systems are the resources and
procedures that your people use to do
their work
Question
What procedures need to be in place
(few or many)?
4.Style
Represents the style of leadership adopted in
the organization
What management style works best?
Autocratic Democratic Paternalistic Budget Constraint Profit Conscious
An autocratic
man...
5. Staff
Successful organizations view people as resources
who should be carefully nurtured, developed,
guarded, and alloc...
What staff are required?
6. Skills
Refer to those activities organizations do best and for
which they are known.
Eg. Du Pont is known for research....
What skills will our staff and company
need?
•What skill does a company have?
•What skills is the company short of?
7. Subordinate Goals
Guiding concepts, values and aspirations that unite
an organization in some common purpose
• Your sha...
What culture or attitudes will be most
suitable?
•The McKinsey 7S Model can be applied to
almost any issue at work. If there are
inconsistencies maybe the team or company
...
McKinsey 7S Model
McKinsey 7S Model
McKinsey 7S Model
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McKinsey 7S Model

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McKinsey 7S Model

  1. 1. The McKinsey 7S Framework How do you go about analyzing how well your organization is positioned to achieve its intended objective?
  2. 2.  Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful. The 7-S model can be used in a wide variety of ways: To help spot what you need to do to improve the performance of your company. Very useful when planning for change in the organization Identify what’s not working in your organization
  3. 3. You need to ask yourself where you are now and where you want to be in the future
  4. 4. The model will help you assess these elements with searching questions
  5. 5. 1.Structure A successful organization may make temporary structural changes to cope with specific strategic tasks without abandoning basic structural divisions throughout the organization
  6. 6. What it really means: Organizational structure is your hierarchy or your organizational chart
  7. 7. Ask yourself this How should an organization be organized? Functional Structure Divisional Structure Matrix Structure Functional structure is set up so that each portion of the organization is grouped according to its purpose. Divisional structure typically is used in larger companies that operate in a wide geographic area or that have separate smaller organizations within the umbrella group to cover different types of products or market areas. Hybrid of divisional and functional structure. This is used in large multinational companies, the matrix structure allows for the benefits of functional and divisional structures to exist in one organization
  8. 8. 2. Strategy Strategy determines how you’re gonna beat your competitors and succeed in your mission
  9. 9. What will the company do? Market Penetration Product Development Market Development Diversification This strategy involves an attempt to increase market share within existing industries, either by selling more product to established customers or by finding new customers within these markets – typically by adapting the ‘Promotion’ element of the Marketing Mix. This involves developing new products for existing markets by thinking about how new products can meet customer needs more closely and outperform competitors. Finding a new group of buyers for an existing product. Related Diversification involves the production of a new category of goods that complements the existing portfolio, in order to penetrate a new but related market. Unrelated diversification entails entry into a new industry that lacks important similarities with the company’s existing markets
  10. 10. Coca-Cola Market Penetration Product Development Market Development Diversification Due to the incredible strength of Coca-Cola’s brand, the company has been able to utilise market penetration on an annual basis by creating an association between Coca- Cola and Christmas The launch of Cherry Coke in 1985 – Coca- Cola’s first extension beyond its original recipe The launch of Coke Zero in 2005– its concept being identical to Diet Coke; the great taste of Coca-Cola but with zero sugar and low calories. In 2007, Coca-Cola spent $4.1 billion to acquire Glaceau, including its health drink brand Vitaminwater. –Adapting to the growing health drink sector Unrelated: Coca-Cola offers official merchandise from pens and glasses to fridges, therefore exploiting its strong brand advocacy through this strategy https://themarketingagenda.com/2015/03/28/coca-cola-ansoff-matrix/
  11. 11. Device Type: Desktop (July 2016) Source:Netmarketshare.com
  12. 12. 3.Systems Systems are the resources and procedures that your people use to do their work
  13. 13. Question What procedures need to be in place (few or many)?
  14. 14. 4.Style Represents the style of leadership adopted in the organization
  15. 15. What management style works best? Autocratic Democratic Paternalistic Budget Constraint Profit Conscious An autocratic management style is one where the manager makes decisions unilaterally, and without much regard for subordinates. Eg: The New York Times(2001-2003), Trump Organization The manager allows the employees to take part in decision-making: therefore everything is agreed upon by the majority. The communication is extensive in both directions (from employees to leaders and vice versa). Is a type of fatherly managerial style typically employed by dominant males where their organizational power is used to control and protect subordinate staff that are expected to be loyal and obedient Manager evaluated on ability to achieve budget in the short term. Manager evaluated on ability to reduce costs and increase profit in the long term.
  16. 16. 5. Staff Successful organizations view people as resources who should be carefully nurtured, developed, guarded, and allocated • In other words, represents your employees and their capabilities
  17. 17. What staff are required?
  18. 18. 6. Skills Refer to those activities organizations do best and for which they are known. Eg. Du Pont is known for research. P&G for product management. ITT for financial controls. HP for innovation and quality.
  19. 19. What skills will our staff and company need? •What skill does a company have? •What skills is the company short of?
  20. 20. 7. Subordinate Goals Guiding concepts, values and aspirations that unite an organization in some common purpose • Your shared values determine the way you work and the way you solve problems
  21. 21. What culture or attitudes will be most suitable?
  22. 22. •The McKinsey 7S Model can be applied to almost any issue at work. If there are inconsistencies maybe the team or company are not working effectively enough. •The model can help reveal such inconsistencies, and we can ensure that they’re matched up to help you share values and objectives with teams that are responsible for making it happen

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