MC KINSEY 7-S MODEL
The McKinsey 7-S Model is a widely discussed framework for viewing the interrelationship of strategy formulation and implementation.
It helps to focus managers` attention on the importance of linking the chosen strategy to a variety of activities that can affect the implementation of that strategy.
- Originally developed as a way of thinking more broadly about the problems of organizing effectively, the 7-S framework provides a tool for judging the "doability" of strategies.
- According to one of its developers, Robert H. Waterman Jr., the framework suggests that it is not enough to think about strategy implementation as a matter only of strategy and structure, as has been the traditional view:
- The conventional wisdom used to be that if you first get the strategy right, the right organization follows. And when most people in Western cultures think about organization, they think structure. We find in practice, however, that these notions are too limiting.
- To think comprehensively about a new strategy and the problems with carrying it out, a manager must think of his company as a unique culture and must think about the ability of the company to get anything really fundamental (i.e., not tactical) accomplished as a matter of moving the whole culture
The 7-S framework views culture as a function of at least seven variables:
- strategy
- structure
- systems
- style
- staff
- skills
- shared values
- The McKinsey 7-S Framework should be thought of as a set of seven compasses. When the needles are aligned, the company is "organized". When they are not, the company is not really organized even if its structure looks right.
- If a 7-S analysis suggests that strategy implementation will be difficult, managers either can search for other strategic options, or go ahead but concentrate special attention on the problems of execution suggested by the framework.
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