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McKinsey 7-S framework
        model

  The 7-S framework of McKinsey is a
   Value Based Management (VBM)
   model that describes how one can
  holistically and effectively organize a
    company. Together these factors
      determine the way in which a
           corporation operates.
Shared Value
   The interconnecting center of
    McKinsey's model is: Shared Values.
    What does the organization stands for
    and what it believes in. Central
    beliefs and attitudes.
Strategy
Plans for the allocation of a


firms scarce resources, over
time, to reach identified
goals. Environment,
competition, customers.
Structure
   The way the organization's units
    relate to each other: centralized,
    functional divisions (top-down);
    decentralized (the trend in larger
    organizations); matrix, network,
    holding, etc.
System
   The procedures, processes and
    routines that characterize how
    important work is to be done:
    financial systems; hiring, promotion
    and performance appraisal systems;
    information systems.
Staff
   Numbers and types of personnel
    within the organization.
Style
   Cultural style of the organization and
    how key managers behave in
    achieving the organization’s goals.
    Management Styles.
Skill
   Distinctive capabilities of personnel
    or of the organization as a whole.
    Core Competences.
Mc kinsey 7 s

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Mc kinsey 7 s

  • 1. McKinsey 7-S framework model The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.
  • 2. Shared Value  The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes.
  • 3. Strategy Plans for the allocation of a  firms scarce resources, over time, to reach identified goals. Environment, competition, customers.
  • 4. Structure  The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.
  • 5. System  The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.
  • 6. Staff  Numbers and types of personnel within the organization.
  • 7. Style  Cultural style of the organization and how key managers behave in achieving the organization’s goals. Management Styles.
  • 8. Skill  Distinctive capabilities of personnel or of the organization as a whole. Core Competences.