McKinsey’s Framework

Mc Kinsey’s 7-S Framework: This framework is based on the proposal that

effective organizational change is best understood in terms of the complex relationship between

1. Shared values.2. Strategy 3. Structure 4. Systems 5. Staff 6. Style 7. Skills

MC KINSEY’S 7-S FRAMEWORK

Structure

StrategySystems

Super-ordinate Goals

Skills Style

Staff

1. Shared values (Super Ordinate Goals): What does the organization stands for and what are its central beliefs and attitudes?

2. Strategy : represents the plans for the allocation of a firm’s scarce resources, overtime, to reach identified goals.

3. Structure : the way in which the organizational units relate to each other.

4. Systems : Systems pertain procedures, processes and routines that characterize how the work should be done: financial systems, recruiting, promotion and performance appraisal systems and information systems.

5. Staff : This means the numbers and types of personnel within the organization.

6. Style : Cultural style of the organization and how key managers behave in achieving the organizational goals.

7. Skills : represents the distinctive capabilities of personnel or of the organization as a whole.

Importance of McKinsey’s 7-S Framework:• An effective implementation of strategy

is thus shown to be conditioned by the ability of management to bring all the 7-S’s into harmony.

• McKinsey model also provides a convenient means of checking whether an organization has the necessary conditions for implementing strategy.

• This model also provides the basis on which the causes of shortfall may be diagnosed and remedial measures can be adopt.