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Boston Communications Consulting
7S Framework
Crystal Diane Byrd
Spring 2003
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Agenda
Case for Market Entry
Factual Overview and reasons for selecting
the 7S frameworkEssence of the Framework
Application of 7S Framework to thecompanys problem
Recommendations
Lessons Learned
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Case for Market Entry
Case 4.2 Boston Communications Consulting Co. hasgrown from 3 consultants to 100 in 2 years. It is nowpreparing to expand overseas and work with globalclients. How would you help the firm develop a strategyand what would you recommend?
Mckinsey 7-S Framework strategy, structure,
systems, style, staff, skills and shared values
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Factual OverviewFunctions/Uses of 7-S-Model
Used for internal analysis of a company
Analyze strategic characteristics of a company
Tool for determining the doability of strategies
Used to create alignment among various departments ofan organization
Examines effect of change on a company
Analyze the successful and dysfunctional aspects of an
organization
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Factual Overview cont
WeaknessFocuses on internal fit of an organization
Ignores effect of factors external to theorganization
Why 7-S Model
Profitable, purposeful, efficient organizational actioncannot be successfully executed if internal elements arenot aligned
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Essence of the Framework
Hard S - rational and factual aspects: focuses onStrategy, Systems, and Structure
Strategy a plan of action to maintain competitiveadvantage over the competition
Systems measures and actions which accommodate
the execution of daily activities
Structure the way the organization is structured, whoreports to whom
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Essence of the FrameworkSoft S - social and interpersonal behavior: focuses on
Style, Shared Values, Staff, and Skills
Style leadership style
Shared Values company culture, work ethics etc
Staff company employees and their capabilities
Skills core competencies of the company as well asthat of its staff
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Application of the Framework - Strategy
Global strategyStandardization of products, processes
and operation around the world
Multidomestic strategyAdjust products and operations according
to each country or market served
Source: Strategic Management. Pitt and Lei, 2003
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Application of the Framework - Systems
W e b S e rve r
Da tabase Serve r
Appl icat ion Server
Cou ntry 1
Cou ntry 2
Cou ntry 3
These 3 servers represent the US
webs i te , ERP , and da tabase se rve r
In each country , a copy of the ERP
is instal led with m odifications to
accomm oda te language
A vers ion of the web s i te in eachCoun try is c reated and hos ted
The loca l ERP and w ebs i te use
the loca l database server
The loca l database is
synchron ized wi th the centra l
database server in Boston severa l
t ime s d a i ly .
*Because a l l locat ions use the sam eDatabase design and have the same basic
operat ions th is model becom es highly
modular and e asy to imp lement mult ip le
t imes.
Internat ional
Data Warehouse
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Application of the Framework Structure
Geogr p ic ivi ion Str ct r e
Hier rc ic l -Two w y open communic tion
Self cont ined product/function tomeet loc l
needs
Promotes igh level ofdecentr liz tion
Corporate - US
Region 1-London Region 2- Germany
Product/Function Product/Function
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Application of the Framework Style
The competitiveexecutiveFlexible nd daptive to Stakeholdersneeds
Seizesandexploitsopportunities
Focuseson increasing the companysshareof
market at a profit
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Application of the Framework Shared
Values
Maintenance of the firms corporate cultureglobally
Strong work ethics among new employees
Healthy balance of competitiveness andcooperation amongst applicants
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Application of the Framework - Staff
Recruitment of new consultants in theirrespective countries
Attract experienced employees at other firms
Offer incentives which should be determined
by the culture of the country
Provide additional training
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Application of the Framework - Skills
Skills for an International Market
Communication, Administrative, Finance andAccounting, Customer Service, Marketing, Product
Development, IT
High Level of linguistic capabilities
Examine foreign recruitment opportunities
Seek the best job techniques for individual countries
Exposure of US based consultants to the globalmarketplace
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RecommendationsConsider application of a framework which includesexternal considerations SWOT
Open offices in UK and Germany since competition is notvery strong here
Avoid France since Cap Gemini is already an establishedpresence and would be a formidable competitor
Form an alliance or partnership with an already
established smaller firm in the consulting industry
Do extensive market analysis to determine marketprofitability, the competition, the governmental or legalrestrictions, and requirements in these countries
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Lesson LearnedIt is best to apply two frameworks to a case beforemaking a decision
7s framework pertains to the internal alignment of a
firm helping them to work towards shared goals andvalues
There are considerable challenges to global expansion capital, labor, government regulations, tax
Companies need a strong, competitive global strategicplan
You must take into consideration cultural, language andcustomer differences