8 Attributes of Management Excellence

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Framework Primer
8 Attributes of Management
Excellence
Presentation created by
A Bias for
Action
Close to
the
Customer
Autonomy
and
Entrepreneur
-ship
Productivity
through
People
Hands-on,
Value-
driven
Stick to the
Knitting
Simple
Form, Lean
Staff
Simultaneous
Loose-Tight
Properties

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Contents
9th Attribute of Management Excellence
8 Attributes of Management Excellence
McKinsey 7-S Strategy Model
Overview
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The 8 Attributes of Management Excellence identifies 8 common themes
that are responsible for the success of a company
Presentation Overview
In their book In Search of Excellence, McKinsey consultants Tom Peters and
Robert Waterman found 8 common themes which they argued were responsible
for the success of 14 identified companies of "excellence." The framework is
known as the 8 Attributes of Management Excellence. The research and
theorizing of this framework was based on the McKinsey 7-S Model, also authored
by Peters and Waterman.
The 8 attributes are:
• A Bias for Action
• Close to the Customer
• Autonomy and Entrepreneurship
• Productivity through People
In an interview, Peters later also added a 9th attribute: Capabilities Concerning Ideas,
Liberation, and Speed.
Hands-on, Value-driven
Stick to the Knitting
Simple Form, Lean Staff
Simultaneous Loose-Tight Properties4
3
2
1
8
7
6
5

This is a high level overview to the McKinsey 7-S Model
McKinsey 7-S Strategy Model
The McKinsey 7-S Model is a business
framework used to evaluate organizational
effectiveness. The basic premise of the model
is that there are seven internal, interrelated
aspects of an organization that need to be
aligned for the organization to be successful.
This framework can be used to understand
our organization and leverage it to maximize
efficiency and profitability. It can also be used
in situations where an alignment perspective
is useful. The scope of these situations
doesn’t matter—for instance, it can be applied
to elements of a project or of a team.
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
For more on the McKinsey 7-S Strategy Model on organizational effectiveness, take a look
here: http://flevy.com/browse/business-document/mckinsey-7-s-strategy-model-197

This is a visualization of the 8 Attributes of Management Excellence
A Bias for
Action
Close to the
Customer
Autonomy
and
Entrepreneur
-ship
Productivity
through
People
Hands-on,
Value-driven
Stick to the
Knitting
Simple Form,
Lean Staff
Simultaneous
Loose-Tight
Properties
1. A Bias for Action
2. Close to the Customer
3. Autonomy and
Entrepreneurship
4. Productivity through People
5. Hands-on, Value-driven
6. Stick to the Knitting
7. Simple Form, Lean Staff
8. Simultaneous loose-tight
Properties

First, let’s explain attributes 1) Bias for Action and 2) Close to the
Customer
Attributes of Management Excellence – Attributes 1 and 2
A Bias for
Action
Close to the
Customer
Autonomy and
Entrepreneur-
ship
Productivity
through
People
Hands-on,
Value-driven
Stick to the
Knitting
Simple Form,
Lean Staff
Simultaneous
Loose-Tight
Properties
A BIAS FOR ACTION
• This characterizes a company that can get things done—one
that adopts a “ready, shoot, aim” philosophy
• There is no paralysis by analysis
• There are lots of small, experimental trials; learn from the
inevitable mistakes, and try again; if we fail, we fail fast
• Strong focus on communication
• This attribute increases knowledge, interests, and
commitments
CLOSE TO THE CUSTOMER
• Customers “intrude” in every nook and cranny of the company,
are highly valued, and are often considered partners or
stakeholders
• There is an obsession with quality, reliability, and customer
service—the focus is on improving customer satisfaction
• Customer is truly King, not a “necessary evil”
1
2The content on this page has been partially hidden.

Now, let’s look at 3) Autonomy and Entrepreneurship; and 2) Productivity
through People
A Bias for
Action
Close to the
Customer
Autonomy and
Entrepreneur-
ship
Productivity
through
People
Hands-on,
Value-driven
Stick to the
Knitting
Simple Form,
Lean Staff
Simultaneous
Loose-Tight
Properties
AUTONOMY AND ENTREPRENEURSHIP
• Primary responsibility for innovation is pushed to the front lines
• Risk taking, innovation, “bootlegging,” and “championing” are
encouraged
• Employees are not penalized when things go wrong—failure is
tolerated
• Successful product or program champions rise quickly up the
ranks
PRODUCTIVITY THROUGH PEOPLE
• The ideas and actions of the frontline workforce, customers,
and suppliers are the main source of productivity gains
• We are enthusiastic and respectful toward others—treat all
employees as adults, as partners, with dignity, and show
respect
• Provide job security and safety
• Broadly share gains from productivity improvement
3
4

The next 2 attributes are 5) Hands-on, Value-Driven; and 6) Stick to the
Knitting
A Bias for
Action
Close to the
Customer
Autonomy and
Entrepreneur-
ship
Productivity
through
People
Hands-on,
Value-driven
Stick to the
Knitting
Simple Form,
Lean Staff
Simultaneous
Loose-Tight
Properties
STICK TO THE KNITTING
• Companies should stick with what they know best
• The excellent companies expanded and diversified primarily
internally, one small, manageable step at a time
• Contain risks and get out if not working
• Robert Wood Johnson, founder of Johnson & Johnson, said
“Never get into businesses you don’t know thoroughly or
know how to run.”
HANDS-ON, VALUE-DRIVEN
• This attribute embodies company philosophy and values
• Two common key values were 1) striving to be the best and
2) delivering superior quality and service
• We should be clear on what our company stands for and
takes the process of shaping values seriously
• Leaders are positive role models—there are highly visible
and close to the frontlines
6
5The content on this page has been partially hidden.

The 7th attribute is Simple Form, Lean Staff; and the 8th, Simultaneous
Loose-Tight Properties, is actually a summary of the other 7
A Bias for
Action
Close to the
Customer
Autonomy and
Entrepreneur-
ship
Productivity
through
People
Hands-on,
Value-driven
Stick to the
Knitting
Simple Form,
Lean Staff
Simultaneous
Loose-Tight
Properties
SIMPLE FORM, LEAN STAFF
• There is a simple organizational structure
• It is a “flat organization”—one employee, one boss—there is
minimal top-level staffing
• People know who they report to
• Organization realignments are rare
• Responsibility for results, along with commensurate authority
and resources, is pushed far down the line
7
SIMULTANEOUS LOOSE-TIGHT PROPERTIES
• This last attribute is a summary of the other 7
• There is tight financial and strategic control, but decentralized
authority
• The key values of the organization (Quality, Service, Ethics,
and so on) are articulated and known—all employees are
charged with tightly adhering to them, but are given leeway
as to how the daily business is performed
• There are opportunities for creativity
8

Organizations go through 5 stages of maturity in Six Sigma adoption and
development
Attributes of Management Excellence – Attribute 9
+
Capabilities
Concerning
Ideas, Liberation,
and Speed
A Bias for
Action
Close to
the
Customer
Autonomy
and
Entrepreneur
-ship
Productivity
through
People
Hands-on,
Value-
driven
Stick to the
Knitting
Simple
Form, Lean
Staff
Simultaneous
Loose-Tight
Properties
• Peters said in a 2001
interview that were he to write
In Search of Excellence
today, he would not tamper
with any of the eight themes,
but he would add to them:
Capabilities Concerning
Ideas, Liberation, and
Speed
• Simply put, this 9th
attribute is
saying not to micro-manage
people and try to control their
actions too much
9

Here is our framework visualization with all 9 attributes—we kept
Simultaneous Loose-Tight Properties in the central position
Close to the
Customer
Autonomy
and
Entrepreneur
-ship
Productivity
through
People
Hands-on,
Value-driven
Stick to the
Knitting
Simple
Form, Lean
Staff
Capabilities
Concerning
Ideas,
Liberation,
and Speed
A Bias for
Action
Simultaneous
Loose-Tight
Properties
1. A Bias for Action
2. Close to the Customer
3. Autonomy and
Entrepreneurship
4. Productivity through People
5. Hands-on, Value-driven
6. Stick to the Knitting
7. Simple Form, Lean Staff
8. Simultaneous loose-tight
Properties
9. Capabilities Concerning
Ideas, Liberation, and Speed

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Flevy (www.flevy.com) is the marketplace
for premium documents. These
documents can range from Business
Frameworks to Financial Models to
PowerPoint Templates.
Flevy was founded under the principle that
companies waste a lot of time and money
recreating the same foundational business
documents. Our vision is for Flevy to
become a comprehensive knowledge base
of business documents. All organizations,
from startups to large enterprises, can use
Flevy— whether it's to jumpstart projects, to
find reference or comparison materials, or
just to learn.
Contact Us
Please contact us with any questions you may have
about our company.
• General Inquiries
support@flevy.com
• Media/PR
press@flevy.com
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