Mckinsey 7s Model Tambilawan Tagalogfinal.pptx

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1. 7s model Mckinsey reporters: lea niña c. tambilawan & DEMI MOORE G. TAGALOG

2. DEFINITION OF MCKINSEY 7S MODEL

3. s what is the definition of mckinsey 7s model? The McKinsey 7S model is a management framework that analyzes and improves organizational effectiveness by examining seven key internal elements: strategy, structure, systems, shared values, style, staff, and skills. It was developed by McKinsey & Company in the 1980s. The model's basic premise is that there are seven internal aspects of an organization that need to be aligned to succeed.

4. s How are these elements classified? Hard Elements- elements that are easier to define or identify and management can directly influence them. These are: 1. Strategy statements 2. Organizational Charts 3. Formal processes and IT systems Soft Elements- elements that are difficult to describe and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful.

5. mckinsey 7s models Below are Soft Elements: Shared Values, Style, Skill, Staff Placing the Shared Values in the middle of the model emphasizes that these values are central to the development of all other critical elements. The company’s structure, strategy, systems, style, staff, and skills all stem from why the organization was created , and what it stands for. The original vision of the company was formed from the values of the creators. As the value changes, so do all the other elements. Top are Hard Elements: Strategy, Structure, System

6. mckinsey 7s models Hard Elements Strategy Definition: The plan developed to maintain and build a competitive advantage over competitors. How will the company compete and win against other companies in a given market? Example: A tech company might focus on innovation and customer service as its primary strategies to differentiate itself from competitors. Structure Definition: The way the organization is arranged, including the hierarchy, departmentalization, and reporting relationships. Example: A multinational corporation may have a matrix structure to allow for both functional and product-based organization. Systems Definition: The procedures, processes, and routines that characterize how work should be done. Example: A retail company might implement a new inventory management system to streamline stock replenishment and reduce shortages.

7. Soft Elements Shared Values Definition: The core values that are evidenced in the corporate culture and general work ethic. These values are central to the development of the other elements of the model. Example: A non-profit organization focused on environmental conservation might have shared values emphasizing sustainability, integrity, and community involvement. Skills Definition: The actual skills and competencies of the employees within the organization. Example: A software development company may have employees with strong technical skills in programming languages, and agile methodologies. Style Definition: The style of leadership and the way managers interact with employees. Example: A startup may have a participative leadership style, encouraging open communication and employee involvement in decision-making. Staff Definition: The employees and their general capabilities and how they are recruited, trained, and motivated. Example: A financial services firm might prioritize hiring top graduates from leading universities and offer continuous professional development programs to retain talent.

8. 1. Organizational Analysis and Diagnosis Purpose: To comprehensively understand the current state of an organization by examining each of the seven elements. Example: A company experiencing declining performance might use the model to diagnose misalignments or weaknesses in its structure, systems, or shared values. 2. Strategy Implementation Purpose: To ensure that a new strategy is implemented effectively by aligning all elements of the organization with the strategic objectives. Example: When a company launches a new market strategy, it might use the model to ensure that its structure, systems, and staff capabilities are all adjusted to support the new strategy. 3. Change Management Purpose: To manage organizational change more effectively by understanding how changes in one area will affect others. Example: During a merger or acquisition, the model can help integrate the two organizations by aligning their structures, systems, and shared values. 4. Performance Improvement Purpose: To identify areas for improvement and ensure that all parts of the organization are functioning optimally. Example: A company might use the model to streamline processes, enhance staff skills, and improve leadership styles to boost overall performance. 5. Organizational Alignment Purpose: To achieve alignment across all parts of the organization, ensuring that all elements are working towards the same objectives. Example: In a global organization, the model can help align different regional offices with the corporate headquarters' strategy and values. 6. Cultural Transformation Purpose: To change the corporate culture by aligning shared values, leadership styles, and staff behaviors with the desired cultural attributes. Example: A company looking to foster a more innovative culture might use the model to promote values of creativity, adjust leadership styles to be more supportive of new ideas, and develop staff skills in innovation management. 7. Coordination and Synergy Purpose: To improve coordination between different departments or units within an organization, ensuring that they work together effectively. Example: A company with multiple business units might use the model to enhance collaboration and synergy, ensuring that all units support each other and the overall strategic goals. THE PURPOSE OF THE MCKINSEY 7S MODEL IS TO ENSURE THAT ALL ASPECTS OF AN ORGANIZATION ARE ALIGNED AND WORKING HARMONIOUSLY TO ACHIEVE ITS STRATEGIC GOALS. THE MODEL IS USED FOR ORGANIZATIONAL ANALYSIS AND IMPROVEMENT IN SEVERAL KEY AREAS. HERE ARE THE PRIMARY PURPOSES:

9. Advantages & DISADVANTAGEs OF MCKINSEY 7S MODEL

10. Advantages & disadvantages of mckinsey 7's models Advantages Disadvantages It comprehensively considers numerous aspects concerning an organization. Appraising all seven elements turn out to be too complex an exercise. This model addresses interdependence amongst elements. Personal biases may interfere with the assessment of the elements. These models help in finding areas of gaps and misalignment within an organization. Market dynamics and external factors may need to be noticed. Market dynamics and external factors may be overlooked. Different elements may undergo collaboration and coordination. Adjustment and monitoring of the seven elements need continuous monitoring. For analyzing the organization, a systematic approach has to be undertaken. It consumes a lot of time and resources. Here, it diagnoses organizational problems and helps in decision-making strategically. The model does not cater to all types of organizations, and the cultural factors may not be addressed fully. Moreover, the model promotes stakeholder engagement and buy-in. Its overemphasis on structures leaves other factors out.

11. CRITICS OF MCKINSEY 7S MODEL

12. mckinsey 7s model critism As effective as the McKinsey 7S Framework is for enhancing organisational effectiveness, it's only helpful when applied correctly and in the right context. Here’s what you need to consider: Subjectivity : The framework's elements, especially the soft ones, can be somewhat subjective. For instance, shared values and style, being culture-oriented aspects, are susceptible to individual influence and interpretation. Different individuals might perceive and apply the framework differently, thus affecting its efficacy. Interconnectedness : The framework stresses that all seven elements are interconnected, and a change in one necessitates an adjustment in the others. This interconnectedness, while embodying the real-world complexity of organisations, can also complicate its application, making it challenging to pinpoint where to start with adjustments. Dynamic Nature of Organisations : While the framework helps assess an organisation at a given point, it does not inherently account for the organisation's capacity to grow and adapt over time. Thus, it's crucial for users to factor in the evolving nature of organisational aspects when utilising the framework.

13. WHEN TO USE THE MCKINSEY 7S MODELS

14. Here are the following action items to consider before applying the 7-S model: 1. Identify the Gaps and Unaligned Processes Perform a  business process analysis  to identify the gaps and inconsistencies in your organization’s existing business processes and list out the unaligned areas, as well as what needs to change to restore the effective balance. 2. Determine the Ideal Organizational Design This step is research-intensive and requires change leaders to find the sweet spot where management’s vision of an optimal organizational design aligns well with the sentiments across the rest of the team members. 3. Create an Effective Action Plan After identifying the outliers, change agents must create a detailed  implementation plan.  The action plan should include required changes to the organization’s hierarchy, the communication flow, and reporting relationships, which will allow the company to achieve the desired organizational design. 4. Implement the Change The change implementation stage is the most critical stage of any change initiative, and only well-implemented changes will avoid  resistance to change  and prevent overall change failures. You should identify internal change agents or hire  change consultants  best suited to implement your changes. 5. Maintain the Momentum with Continuous Review Processes These seven elements are highly dynamic and change constantly. Therefore, practitioners must track these elements and their impact on one another to maintain the momentum of change. How to Implement McKinsey’s 7-S Model Change agents  can effectively implement the McKinsey 7-S model using a top-bottom approach.  You must identify which elements of the 7-S framework you need to realign to improve organizational performance or to maintain alignment and performance during other changes such as restructuring,  process improvement , a corporate merger, new  software implementation , or a leadership change.  Example of the McKinsey 7s Model in Action The practical applications of this model including both the failure & success of organizational change projects can be seen by studying the following corporate example: 1. Nokia From initially being a mobile phone industry pioneer, to drastically losing market share, and finally getting acquired by Microsoft, Nokia’s journey of change failure can be explained using the 7-S framework. Strategy:  Nokia faced a dilemma and had to optimize costs and volume, enhance performance, and maximize security. Nokia opted for a cost-leadership approach and failed miserably on its innovation and performance fronts.  Structure:  Nokia had a top-down line of hierarchy where employees were working in silos with limited communication. To compete with the likes of Apple, Nokia should have opted for an agile and decentralized structure, along with a collaborative approach. Systems:  Nokia considered agility and being nimble as its key competitive advantages. With a skilled workforce, Nokia was in a position to innovate its products and increase operational efficiency. Skills:  Nokia had a pool of highly-skilled engineers and initially designed highly efficient mobile phones. There wasn’t any skill gap weighing them down. Staff:  During 2007-2010, Nokia surprisingly removed the CTO position from top management, leading to extremely high attrition rates. New hires weren’t properly skilled, to begin with, causing the downfall of Nokia as a cutting-edge brand. Style:  Due to the low technical competence of leaders, employee morale was low. Instead of bringing in people with the right backgrounds to further company innovation and growth., Nokia needed transformational change leadership to help with technological advancement and cutting-edge designs.  Shared Values:  The core values of the company enabling business performance were Respect, Achievement, Renewal, Challenge.

15. reporters lea niña c. tambilawan demi moore g. tagalog