The 7-S Framework of McKinsey is a management model that describes 7 factors to organize a company in a holistic and effective way. Together these factors determine the way in which a corporation operates. Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small. They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time.
ORIGIN OF THE 7-S FRAMEWORK. HISTORY
The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981. They had been investigating how Japanese industry had been so successful. At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of these four authors in 1978. It appeared also in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy company McKinsey. Since then it is known as their 7-S model.
THE MEANING OF THE 7 SS
Shared Values (also called Superordinate Goals).
The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes. Compare: Strategic Intent
Plans for the allocation of a firms scarce resources, over time, to reach identified goals.Environment, competition, customers.
The way in which the organization's units relate to each other: centralized, functional divisions (top-down); decentralized; a matrix, a network, a holding, etc.
The procedures, processes and routines that characterize how the work should be done: financial systems; recruiting, promotion and performance appraisal systems; information systems.
Numbers and types of personnel within the organization.
Cultural style of the organization and how key managers behave in achieving the organization's goals. Compare: Management Styles.
Distinctive capabilities of personnel or of the organization as a whole. Compare: Core Competences.
STRENGTHS OF THE 7-S MODEL. BENEFITS
* Diagnostic tool for understanding organizations that are ineffective. * Guides organizational change.
* Combines rational and hard elements with emotional and soft elements. * Managers must act on all Ss in parallel and all Ss are interrelated. Book: Ethan M. Rasiel, Paul N. Friga - The McKinsey Mind: Understanding and Implementing the Problem Solving Tools and Management Techniques -
Reconciling the purpose of a company with its means. Explanation of Strategic Intent of Hamel and Prahalad. ('89)|
In 1989, Gary Hamel and C.K. Prahalad created an upheaval with their article entitled "Strategic Intent". It was published in the Harvard Business Review. Hamel and Prahalad argue that in order to achieve success, a company must reconcile its purpose (end) with its means through Strategic Intent.WHAT IS STRATEGIC INTENT? DESCRIPTIONIn their book, Hamel and Prahalad define Strategic Intent as: an ambitious and compelling dream that energizes; which provides the emotional and intellectual energy for the journey to the future. If strategic architecture (a high-level blueprint for the deployment of new functionalities, the acquisition of new competencies or the migration of existing competencies, and the reconfiguring of the interface with customers) is the brain, strategic intent is the heart. It should express a feeling of stretch (challenge) - that current resources and capabilities are not sufficient for the task. STRATEGIC INTENT ATTRIBUTESHamel and Prahalad provided the following three attributes of strategic intent: direction, discovery, and destiny. 1. Sense of Direction. A particular point of view about...