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Analyzing and improving organizational effectiveness, McKinsey developed a new framework, the 7S model, to better represent the challenges of service marketing. This model helps in analyzing how well your organization is positioned to achieve its intend....More..>>
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  The 7S McKinsey model

Analyzing and improving organizational effectiveness, McKinsey developed a new framework, the 7S model, to better represent the challenges of service marketing. This model helps in analyzing how well your organization is positioned to achieve its intended objective. McKinsey 7S framework was 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 McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements. "Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems; however, "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. To make organization successful both elements are equally important.
The 3Ss across the top of the model are described as 'Hard elements':

Strategy: The road map to make organization’s competitiveness over the long term.

Structure: The way the organization is structured and line of hierarchy, areas of expertise, and responsibility and cross functional relation.

Systems: Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer.

The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed 'Soft Ss' by McKinsey:

Skills: The skills and competencies of the employees exist within the company.

Shared values: The values and beliefs of the company.


Staff: the representative face of the company

Style: The style of leadership adopted. In combination they provide another effective framework for analyzing the organization and its activities. In a marketing-led company they can be used to explore the extent to which the company is working coherently towards a distinctive and motivating place in the mind of consumer.


7S Checklist Questions

Here are some of the questions that you'll need to explore to help you understand your situation in terms of the 7S framework. Use them to analyze your current situation first, and then repeat the exercise for your proposed situation.

Strategy:

• What is our strategy?
• How to we intend to achieve our objectives?
• How do we deal with competitive pressure?
• How are changes in customer demands dealt with?
• How is strategy adjusted for environmental issues?

Structure:

• How is the company/team divided?
• What is the hierarchy?
• How do the various departments coordinate activities?
• How do the team members organize and align themselves?
• Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing?
• Where are the lines of communication? Explicit and implicit?

Systems:

• What are the main systems that run the organization? Consider financial and HR systems as well as communications and document storage.
• Where are the controls and how are they monitored and evaluated?
• What internal rules and processes does the team use to keep on track?

Shared Values:

• What are the core values?
• What is the corporate/team culture?
• How strong are the values?
• What are the fundamental values that the company/team was built on? Style:
• How participative is the management/leadership style?
• How effective is that leadership?
• Do employees/team members tend to be competitive or cooperative?
• Are there real teams functioning within the organization or are they just nominal groups?

Staff:

• What positions or specializations are represented within the team?
• What positions need to be filled?
• Are there gaps in required competencies?

Skills:

• What are the strongest skills represented within the company/team?
• Are there any skills gaps?
• What is the company/team known for doing well?
• Do the current employees/team members have the ability to do the job?
• How are skills monitored and assessed?