Strategy: McKinsey 7S Framework and Telenor Example
[pic]I try to explore the McKinsey 7S Framework as a part of case study, in which I have to analyze Telenor, the Norwegian telecommunication company. McKinsey and Company created this 7S framework in the early 1980s. It is well-known for analyzing organizations, for the fact that McKinsey and Company used it to analyze over 70 large organizations in 1980s. As described in the title, the framework has 7 variables: structure, strategy, systems, staff, skills, style and shared value. These variables are categorized as soft and hard components. The hard components are strategy, structure and systems which are normally feasible and easy to identify in an organisation as they are normally well documented in reports such as strategy statements, corporate plans, organisational charts, etc. The remaining four ones are more difficult to comprehend. It is only possible to understand these aspects by studying the organisation very closely, normally through observations and/or through conducting interview (~Oh no…). Structure
Structure is the skeleton, the form of shape, of organisations. It dictates the way it operates and performs (Waterman et al., 1980). Traditionally, businesses are structured with divisions, departments and layers, in which the lower layers answer to upper layers. Today, the flat structure, where the work is done in teams of specialists, are more common. The idea is to make the organisation more flexible and devolve the power by empowering the employees and eliminate the middle management layers (Boyle, 2007). Strategy
Strategy is a plan or course of action in allocating resources to achieve identified goals over time. Unlike tactic, strategy is well thought and often rehearsed. It transforms the organisation from the present position to the new position described in the objectives, subject to constraints of the capabilities (Ansoff, 1965). Systems
Systems are routine processes and procedures...
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