Wednesday, 26 December 2018

7s Framework and elements

McKinsey 7s Framework or McKinsey 7s Framework is a tool use to analyze aspects of the Internal Organization. A company using the 7 main elements namely Strategy, Structure, Systems, Share-values, Style, Staff and Skills. McKinsey 7s model Analysis was introduced by Tom Peters and Robert Waterman. Who works as a consultant in the company of McKinsey & Company in 1980 's.

According to them, the alignment of the seven elements in the Organization was a factor. The key to the success of a company.  The seven elements that are refer to in the McKinsey 7s has a relationship of mutual dependent of each other. A change in one element will affect the other elements.

McKinsey 7s model can be apply to a variety of situations and is an excellent tool in designing form an organization, improve organizational performance, testing. The factors necessary changes in organizations, departments and align process for acquisition and mergers. As well as determining the best strategy for your organization.

7 elements in the McKinsey 7s Framework

McKinsey 7s consists of 7 elements are divide into two major groups. The first group of "hard" or "Hard" that includes Strategy, Structure and systems. The third element is categorize as a group of "hard" because it is more easily identify. It can be influence by management directly. While the second group is a group of "soft" or "Soft" that includes Share Values, Skills, Staff and Style. These four elements are categorize as "soft" due to the intangible and relatively difficult to pin down and heavily influence by the culture of an organization.

Linkages between the elements of the McKinsey 7s can be seen from the image below:

The Strategy (the strategy)

The strategy is a formula organization which is use to maintain and build a sustainable competitive advantage in the competition. The strategy basically has a firm and clear direction so that any individual or group to know clearly about the way that must be is use to achieve the objectives of the organization.

Structure (Structure)

The structure in question here is the organizational structure of the company that organizes the system of work, communication, authority and responsibilities as well as the delegation of tasks to units of work or certain people in order to achieve the objectives of the organization. The structure is an element which can be seen so it's easy to set up or change it.

Systems (systems)

System in the McKinsey 7s this is process and Procedures containing the daily operational activities and decision-making within the company. This system is the main focus of management in case of necessary changes in an enterprise organization.

Skills (skills)

Skill is the ability of an employee who is require by the company so that it can perform well as expect so that it can assist the company in achieving the goal. Skill or skills is also includes Capabilities (Capabilities) and competence (Competences).

Staff (employees)

Staff Employee is require by the company. Elements of the Staff with regard to how the employee is select, recruit, train, motivate and reward.

Style (Style)

The elements of Style are related to the leadership style of management. Which is use in the Organization to achieve its business goals.

Shared Values (Corporate values)

Shared Values is a core principal of McKinsey 7s Framework as it pertains to the core values of the company that became a culture. Share Values is basically Standard or norms of conduct which becomes for all employees and the management of the company.

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