7's Framework of Hp

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Chapter 12

McKinsey 7S

Ch12. McKinsey 7S
• • • • • • • • Short Description Background Strategic Rationale & Implications Strengths & Advantages Weaknesses & Limitations Process for Applying Technique Case Study: Kenya Airways FAROUT Business and Competitive Analysis. By C. Fleisher & B. Bensoussan.

FT Press 2007. All Rights Reserved.

Ch12.2

Ch12. McKinsey 7S
Short Description • The McKinsey 7S model is a diagnostic management tool used to test the strength of the strategic degree of fit between a firm’s current and proposed strategies. • It is a management tool designed to facilitate the process of strategy implementation within the context of organizational change.

FT Press 2007. All Rights Reserved.

Business and Competitive Analysis. By C. Fleisher & B. Bensoussan.

Ch12.3

Ch12. McKinsey 7S
Background • Idea that structure will follow strategy had been a prominent concept in modern strategy theory. • Consultants at McKinsey & Co. recognized a circular problem central to their client’s failure to effectively implement strategy, and co-developed the McKinsey model. • Successful implementation of strategy requires management of the interrelationships between seven elements.

FT Press 2007. All Rights Reserved.

Business and Competitive Analysis. By C. Fleisher & B. Bensoussan.

Ch12.4

Ch12. McKinsey 7S
Background • Seven elements are: 1. Structure 2. Strategy 3. Systems 4. Style 5. Staff 6. Skills 7. Shared values

FT Press 2007. All Rights Reserved.

Business and Competitive Analysis. By C. Fleisher & B. Bensoussan.

Ch12.5

Ch12. McKinsey 7S
Background: Schematic of the McKinsey 7S Framework.
Strategy

Systems

Structure

Shared Values / Subordinate Goals

Staff

Skills

Style FT Press 2007. All Rights Reserved. Business and Competitive Analysis. By C. Fleisher & B. Bensoussan.

Ch12.6

Ch12. McKinsey 7S
Background • There are four key insights which can be derived from this model:

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