2. INTRODUCTION
Tool for analysis and action.
Developed McKinsey&Co. consultants , Harvard
Business School and Stanford Business School
professors.
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4. 1. STRATEGY
Ways to achieve competitive advantage.
Examples.
Low-cost strategy through economic production or
delivery
Product differentiation through distinct features or
innovative sales.
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5. 2. STRUCTURE
Ways in which task and people are specialized and
divided, and authority is distributed.
Four main structures
Functional Structure
Divisional Structure
Matrix Structure
Network Structure
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10. 3. SYSTEMS
Formal processes and procedures to manage the
organization.
Examples:
Performance Measurements
Reward Systems
Planning
Budgeting
Resource Allocation
Information System
Distribution System
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11. 4. STAFFING
People, their background and competencies.
Organization’s approach to
recruitment, selection, socialization, training and
employee development.
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12. 5. SKILLS
Distinctive competencies in the organization.
Can be of People, Management Practices, Systems
and/or Technologies.
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13. 6. STYLE
Leadership style of top management and overall
operating style of organization.
Impacts norms followed by people, how they work
and interact with each other and customers.
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14. 7. SHARED VALUES
Core values shared in the organization and serve
as guiding principles of what is important.
Helps focus attention and provides a broader sense
of purpose.
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15. USING THE 7-S MODEL
Each S is consistent with and reinforces the other
S’s.
Recognize the full range of elements that need to
be changed and focus on the ones that will have
the greatest effects.
All seven variables are interconnected- to make
progress in one, adjustments need to be made in
others also.
No natural starting point for a change – it is decided
by diagnosis of the alignment of the organization.
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16. USING THE 7-S MODEL
Hard S’s (Easier to change)
Strategy
Structure &
Systems
Softer S’s (Harder to change directly and take
longer)
Staffing
Skills
Style &
Shared Values
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