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ORGANIZATIONAL ALIGNMENT: THE 7-S MODEL
INTRODUCTION
   Tool for analysis and action.

   Developed McKinsey&Co. consultants , Harvard
    Business School and Stanford Business School
    professors.




                                                   2
7-S FRAMEWORK




                3
1. STRATEGY
   Ways to achieve competitive advantage.

   Examples.
     Low-cost strategy through economic production or
      delivery
     Product differentiation through distinct features or
      innovative sales.




                                                             4
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




                                                        5
   Functional Structure




                           6
   Divisional Structure



                           GM




                                7
   Matrix Structure




                       8
   Network Structure




                        9
3. SYSTEMS
   Formal processes and procedures to manage the
    organization.

   Examples:
       Performance Measurements
       Reward Systems
       Planning
       Budgeting
       Resource Allocation
       Information System
       Distribution System
                                                    10
4. STAFFING
   People, their background and competencies.

   Organization’s approach to
    recruitment, selection, socialization, training and
    employee development.




                                                          11
5. SKILLS
   Distinctive competencies in the organization.

   Can be of People, Management Practices, Systems
    and/or Technologies.




                                                      12
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.




                                                      13
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.




                                                         14
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.
                                                           15
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

                                                     16
17

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Mc kenzie 7s framework

  • 2. INTRODUCTION  Tool for analysis and action.  Developed McKinsey&Co. consultants , Harvard Business School and Stanford Business School professors. 2
  • 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. 4
  • 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 5
  • 6. Functional Structure 6
  • 7. Divisional Structure GM 7
  • 8. Matrix Structure 8
  • 9. Network Structure 9
  • 10. 3. SYSTEMS  Formal processes and procedures to manage the organization.  Examples:  Performance Measurements  Reward Systems  Planning  Budgeting  Resource Allocation  Information System  Distribution System 10
  • 11. 4. STAFFING  People, their background and competencies.  Organization’s approach to recruitment, selection, socialization, training and employee development. 11
  • 12. 5. SKILLS  Distinctive competencies in the organization.  Can be of People, Management Practices, Systems and/or Technologies. 12
  • 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. 13
  • 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. 14
  • 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. 15
  • 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 16
  • 17. 17