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McKinsey 7McKinsey 7--S FrameworkS Framework

Structure Systems

SkillsStaff

Strategy StyleShared Value

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In Search of Excelle n ceIn Search of Excelle n ce

Structur eStructur e (simple form & lean staff)(simple form & lean staff)

Strat egy

Strat egy

(close to the(close to the customer)customer) (stick to the knitting)(stick to the knitting)

Staff Staff autonomy & entrepreneurship)autonomy & entrepreneurship) (productivity through(productivity throughpeople)people)

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THE HARDSs

Strategy : the direction and scope of the company over the longterm.

Structure : the basic organization of the company, itsdepartments, reporting lines, areas of expertise and responsibility(and how they inter-relate).

Systems : formal and informal procedures that govern everydayactivity, covering everything from management informationsystems, through to the systems at the point of contact with thecustomer (retail systems, call center systems, online systems, etc).

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THE SOFTSs

Skills : the capabilities and competencies that exist within thecompany. What it does best.

Shared values : the values and beliefs of the company. Ultimatelythey guide employees towards 'valued' behavior.

Staff : the company's people resources and how the are developed,

trained and motivated.

Style : the leadership approach of top management and thecompany's overall operating approach.

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StrategyStrategy Actions a company Actions a company

plans in response to orplans in response to oranticipation of changesanticipation of changes

in its externalin its externalenvironment.environment.

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StructureStructure

Basis for specialization and coBasis for specialization and co- -

ordination influenced primarilyordination influenced primarilyby strategy and byby strategy and byorganization size and diversity.organization size and diversity.

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SystemsSystemsFormal and informalFormal and informal

procedures that support theprocedures that support thestrategy and structure.strategy and structure.

(Systems are more powerful(Systems are more powerfulthan they are given credit than they are given credit

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Style / CultureStyle / CultureT he culture of the orga n izatio n, T he culture of the orga n izatio n, co n sisti n g of two compo n e n ts:co n sisti n g of two compo n e n ts:

Orga n izatio n al Culture: theOrga n izatio n al Culture: thedomi n a n t values a n d beliefs , a n ddomi n a n t values a n d beliefs , a n d

n orms , which develop over time a n dn orms , which develop over time a n dbecome relatively e n duri n g featuresbecome relatively e n duri n g features

of orga n izatio n al life.of orga n izatio n al life.

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Management Style: more amatter of what managers do

than what they say; How do acompanys managers spendtheir time? What are theyfocusing attention on?Symbolism the creation and

maintenance (or sometimesdeconstruction) of meaning is afundamental responsibility of managers.

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Staff Staff T he people/huma n resourceT he people/huma n resource

ma n ageme n tma n ageme n t processes used toprocesses used todevelop ma n agers , socializatio n develop ma n agers , socializatio n

processes , ways of shapi n g basicprocesses , ways of shapi n g basicvalues of ma n ageme n t cadre , waysvalues of ma n ageme n t cadre , ways

of i n troduci n g you n g recruits to theof i n troduci n g you n g recruits to thecompa n y , ways of helpi n g to ma n agecompa n y , ways of helpi n g to ma n age

the careers of employeesthe careers of employees

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SkillsSkillsT he disti n ctive compete n cesT he disti n ctive compete n ces what the compa n y doeswhat the compa n y doesbest , ways of expa n di n g orbest , ways of expa n di n g or

shifti n g compete n cesshifti n g compete n ces

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Shared Values /Shared Values /Superordinate GoalsSuperordinate Goals

G uidi n g co n cepts , fu n dame n tal ideasG uidi n g co n cepts , fu n dame n tal ideasarou n d which a busi n ess is builtarou n d which a busi n ess is built must be simple , usually stated atmust be simple , usually stated at

abstract level , have great mea n in gabstract level , have great mea n in g

in side the orga n izatio n eve n thoughin side the orga n izatio n eve n thoughoutsiders may n ot see or u n dersta n doutsiders may n ot see or u n dersta n dthemthem ..

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Strategic ProblemStrategic Problem- -Solving M odelSolving M odel

D ata

Intuition

M anagingTeamClientSelf

LeadershipVisionInspirationDelegation

P roblem Solution

ImplementationDedicationReactionCompletion

Iteration

Business NeedCompetitiveOrganizationalFinancialOperational

AnalyzingFramingDesigningGatheringInterpreting

PresentingStructureBuy-in

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In the framework, there are 7

maincomponents that give rise tothe student-centered andlearning-centered standards as

follows

1. Strategic Leadership

2. Shared Values of Stakeholders

3. Strategy and Performance M etrics

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