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Mc kinsey 7s model - strategic implementation- Manu Melwin Joy

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• McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives.

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Mc kinsey 7s model - strategic implementation- Manu Melwin Joy

  1. 1. McKinsey 7s Model Strategic Implementation
  2. 2. Prepared By Kindly restrict the use of slides for personal purpose. Please seek permission to reproduce the same in public forms and presentations. Manu Melwin Joy Assistant Professor Ilahia School of Management Studies Kerala, India. Phone – 9744551114 Mail – manu_melwinjoy@yahoo.com
  3. 3. McKinsey 7s Model • McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives.
  4. 4. McKinsey 7s Model
  5. 5. Strategy • Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in the market. In general, a sound strategy is the one that’s clearly articulated, is long-term, helps to achieve competitive advantage and is reinforced by strong vision, mission and values.
  6. 6. Structure • Structure represents the way business divisions and units are organized and includes the information of who is accountable to whom. In other words, structure is the organizational chart of the firm. It is also one of the most visible and easy to change elements of the framework.
  7. 7. Systems • Systems are the processes and procedures of the company, which reveal business’ daily activities and how decisions are made. Systems are the area of the firm that determines how business is done and it should be the main focus for managers during organizational change.
  8. 8. Skills • Skills are the abilities that firm’s employees perform very well. They also include capabilities and competences. During organizational change, the question often arises of what skills the company will really need to reinforce its new strategy or new structure.
  9. 9. Staff • Staff element is concerned with what type and how many employees an organization will need and how they will be recruited, trained, motivated and rewarded.
  10. 10. Style • Style represents the way the company is managed by top-level managers, how they interact, what actions do they take and their symbolic value. In other words, it is the management style of company’s leaders.
  11. 11. Shared Values • Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide employee behavior and company actions and thus, are the foundation of every organization.
  12. 12. Example of McKinsey 7s Model
  13. 13. Strategy • Imagine that your organization is planning to implement lean culture.
  14. 14. Strategy • Focus on the firms core competencies and deploying lean manufacturing principles throughout the firm, targeting and eliminating waste.
  15. 15. Structure • A small hierarchy is needed, which encompasses self directed work teams. Daily interdepartmental stand up meetings to be held daily.
  16. 16. Systems • A bonus system which supports Lean improvement and the new ways of working, a pay grade structure that is aligned to the new team structure.
  17. 17. Skills • Develop new team skills, problem solving, waste elimination and process analysis skills, empowerment to make decisions, the ability to run and close out Kaizen.
  18. 18. Staff • Team players, goal sharing, acting as change agents and driving improvements on an individual level.
  19. 19. Style • Leadership that is trained in Emotional Intelligence and the courage to delegate and empower subordinates. Leadership that leads by example and can coach and mentor employees in Lean techniques.
  20. 20. Shared Values • Creating an organization that respects each and every employee, committed to the environment and continuously strives for waste elimination and perfection in everything it does.

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