Assignment Mckinsey 7S

7/23/2019 Assignment Mckinsey 7S

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McKinsey 7S

Short Description

Background

Strategic Rationale & Implic ations

Strengths & Advantages

Weaknesses & imitations

!rocess "or Applying #echni$ue

%ase Study Kenya Air'ays

(AR)*#

Short Description

The McKinsey 7S model is a diagnostic

management tool used to test the strength of the strategic degree of t between a rms

current and proposed strategies.

It is a management tool designed to facilitate the process of strategy implementation

within the

context of organitional change.

Idea that structure will follow strategy had been a prominent concept in modern

strategy theory.

!onsultants at McKinsey " !o. recognie d a

circular problem central to their client s failure to e#ecti$ely implement strategy+ and co%

de$eloped the McKinsey mo del.

Successful implementation of strategy re&uires management of the interrelationships

between se$en elements.

Se$en elements are'

(. Structure

). Strategy

*. Systems

+. Style

,. Sta#

-. Sills

7. Shared $alues


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Background

There are four ey insights which can be deri$e d from this model'

/i$e other elements comprise organiational

e#ecti$eness in addition to the traditional strategy and structure.

The lines connecting each element identify the mutual dependency between

each element.

Strategic failure may be attributable to inattention to one or a combination of

se$en elements.

The circularity of the model focuses the analysts

attention on the absence of hierarchic al dominance.

Strengths and Advantages

0mphasis on a rm s strategy implementation.

1rganiational e#ecti$eness was not dependent on 2ust strategy and structure.

!omprehensi$e because the analyst must consider each of the se$en constructs3 and

how they

interact.

/irst model to meld the 4 hard 5 and 4soft5 aspects of the enterprise.

0mphasies coordination of ey tass.

Model was also one of the rst to help connect academic research with managerial

practice.

Weaknesses and imitations

May miss some ne%grained areas in which gap s in strategy conception or

execution c an arise.

6ittle empiric al support for the model or of its originators conclusions.

emains di8cult to properly assess the degree of t.

9i8cult for analysts to explain what should be done for implementation using the

model.

The 7S is mostly a static model,


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!rocess "or Applying the #echni$ue

The rst step is to closely examine each :S.

The ey success factors for each element nee d to be identied.

!an create a 7 ; ) matrix with the top row

containing critic al features of each :S that the company does extremely well.

The bottom row would contain the elements of

each :S where the company is achie$ing sub%par performance. ?)@

This matrix can be extremely useful in organiing the analysis.

!rocess "or Applying the #echni$ue'

After isolating the strategic distance between the se$en elements of strategic t3 there

are essentially three options'

The rm can wor to change the re&uire d components of each :S so that they

are consistent with strategy.

It can change the strategy to t the existing orientation of the other six elements

of the model.

1ften3 a compromise between each option is the realistic alternati$e.


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%ase Study !rivati-ation o" Kenya Air'ays

Kenya Airways was origin ally established in (>77 as a corporation owned by the

Kenyan Bo$ernment.

Senior management was appointed by politicians and had $irtually no airline

experience.

The company laced structure and direction3 had $ery little e&uipment >( the airline was losing maret share due to poor ser$ice and unreliable Dight

schedules and its debts were an enormous strain on the Kenyan

Bo$ernment.

In (>>(3 the commercialiation process began.

A new and capable management team was hired.

Eee ds of all staeholders were identied

IT department was created to introduce new consistent

systems and controls for accounting3 scheduling3 operations3 management3 and ticeting.

Cy (>>+3 the airline recorded its rst prots.

(>>, created a strategic alliance with K6M oyal 9utch Airlines.

In (>>- the Kenyan Bo$ernment sold )-F of its stoc to K6M3 and most of the

remainder of its stoc to the Eairobi Stoc

0xchange3 lea$ing only a ))F minority ownership bloc held in the airline.


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Related #ools and #echni$ues

!ompetiti$e Cenchmaring

!ustomer Segmentation and Eee ds Analysis

!ustomer Galue Analysis

/unctional !apability and esource Analysis

S0G1 Analysis

S=1T Analysis

Galue !hain Analysis

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Assignment Mckinsey 7S