Final 7-s Model Presentation (1)

8/18/2019 Final 7-s Model Presentation (1)

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MCKINSEY 7S MODE


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HISTORY

It was first mentioned

in " The Art Of

Japanese

Management " by

Richard Pascale &

Anthony Athos in

1981.

At around the same

time, Tom Peters &

Robert Waterman

were exploring what

made a company

excellent.

The 7 S model was

born at a meeting of

these four authors in

!7"

It w

bas

glo

con

!c


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Large or small, the strategies are all interdependent, so if you fail to pay proper a

them, this may effect all others as well.

Managers should take into account all 7 of these factors, to be sure of successfu

of a strategy

What is the 7S Framework?

Its a management model that describes 7 factors to organize a company in an h

way

ogether these factors determine the way in which a corporation ope


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McKinsey 7S Framework

The model is most often used as a tool to assess and monitor changes i

internal situation of an organization.


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Why shared vales in the middle o! the m


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The 7s "lements


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Strategy Structure Sy


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7#S $H"$K%IST &'"STIO(S


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7#S $H"$K%IST &'"STIO(S


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HOW TO 'S" THIS TOO%?


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ST)R*'$KS M$KI(S"Y 7S+ FR)M"WO

Hard Elements


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STARBUCKS MCKINSEY 7S’ FRAME!RK

S"#t Elements


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'S"S OF M$KI(S"Y 7S MO,"%


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*"("FITS OF TH" M$KI(S"Y 7S MO,


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,R)W*)$KS !F MCKINSEY 7S M!


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&R!CESS F!R A&&%YIN' THE TECHNI(


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Aligned strategic fit Partially aligned fit Mi

&R!CESS F!R A&&%YIN' THE TECHNI(


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PRIVATIZATION OF KENYA AIRWA


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The airline recorded

its first profits.

The commercialization process began

created a strategic alliance with

KLM Royal Dutch Airlines

)**) )**+ )**, )**-

Privatization of Kenya Airways

)**) )**+

the Kenyan Goernment

stoc$ to KLM% and most o

of its stoc$ to the

()change% leaing only

ownership bloc$ held in th


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S.ared /alues

•Not suited to commercial profit-drien firm.

•!ery little attention paid to managing firm-

"ide human factors.

S.ared /alues

•#dentify needs of internal staff$ custome

•%hange culture to &e serice-oriented &

employee through customer serice trai

•#ncrease shareholder alue.

•Aim to &ecome Africa(s leading airline.

•)eep product offerings consistent and o

Strategy

•+ac' of strategy.•No mar'et direction.

•Mainly unprofita&le.

•,nrelia&le and rarely on time.

Strategy

•oal to achiee "orld-class standards

product *uality and performance(.•/elier profita&ility consistently.

•0e the airline of choice in Africa(.

•Anticipate industry change factors.

•perate a modern fleet of aircraft.

•%reate alliances "ith other respecta&le

A#T$R%$#OR$


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Systems

•Lac$ of measurement for operations.•*mprecise financial reporting.

•Lac$ of accountability.

•Technical s$ills misused and underutilized.

• &o means to measure productiity.

•+omputer systems not sufficient to sustain

business.

Systems

• &ew financial control and account

• &ew budget planning and reportin

•+reation of *T department.

• &ew program to continuously imp

and reliability.

Str!tre•,loated wor$force.

•,ureaucratic.•Lac$ of accountability in goernance

BEFORE AFTER

Str!tre

•-or$force reduction.

•Managers e)pected to be responsiaccountable for their units.

•Decentralized with offices or age

the airline sericed.

AFTER


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S"i##s

/Large mar$et share of regional routes.

/Decent share of international routes.

/Technical s$ills misused and underutilized.

/-ea$ sales and mar$eting.

S"i##s

/(fficient use of fleet.

/'trategic alliance with KLM.

/'ta$eholder drien culture.

/Attracting business class custom

/+onsistently profitable

Sty#e

/0olitically influenced.

/+(1s were rarely held the station longer than a

couple of years and lac$ed ade2uate time to

implement strategies.

Staff

/(mployees were friends and relaties of

politicians.

/More employees were employed than needed.

/3nused talent and energy at almost eery leel.

/Low standards of customer serice.

BEFORE AFTER

Sty#e

/0rofitoriented culture.

/4iring of upper managem

e)perience.

/()ecuties e)pected to reamsales and mar$eting% control and

Staff

/Reduction of staff.

/All staff get customer serice tra

/*ncreased productiity.

/All staff e)pected to be

accountable


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Key 0"1nts

! The 72S #rame3"r4 of McK1nsey is a /alue Based Management 5/BM6 m"del

one can holistically and effecti#ely organi$e a company .3

! The Mc)insey 45s model is one that can &e applied to almost any organ

effectieness issue.

! #nconsistency &et"een some of the elements can &e identified &y this classic mo

! The Mc)insey 45 model can &e applied to elements of a team or a pro6ect as "e


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Final 7-s Model Presentation (1)