Seema Lall
on McKinsey 7-S Framework
of
Gujarat Cooperative Milk Marketing Federation
(AMUL)
A Presentation by :-:
McKinsey 7-S Framework
Source : http://www.buildingbrands.com
Hard Ss
Soft Ss
HARD Ss
StructureStrategySystems
SOFT Ss
Staff SkillsStyleShared -Values
McKinsey 7-S framework exemplifies…….
Seven areas of an organisation- must work in harmony
Elements- interlinked and affected by one another
Growth- managing the interaction between all the 7 factors
HARD Ss
StructureStrategySystems
SOFT Ss
Staff SkillsStyleShared -Values
McKinsey 7-S Framework & AMUL
The 7-S could be a useful “laundry list” of things to consider when assessing internal "fit" or coherence
The Hard Ss and the Soft Ss together give an effective framework for,
• analyzing the organization and its activities• exploring the extent to which the company is working coherently
towards a distinctive and motivating place in the minds of the consumers
HARD Ss
StructureStrategySystems
SOFT Ss
Staff SkillsStyleShared -Values
AMUL- An Overview
Situation of farmers
Setting up of Kaira District Co-operative Milk Producers' Union
Setting Up of Gujarat Cooperative Milk Marketing Federation
To differentiate its high quality products, KCMPUL decided to brand its produce
Hence, ‘Amul’ was born; derived from the Sanskrit word ‘Amulya’, meaning priceless, also stood for 'Anand Milk Union Limited'
The Co-operative:Gujarat Cooperative Milk Marketing Federation
The Brand:Amul
Brand larger than the co-operative
Amul – part of our culture
Hard Ss Begin…Application of the Framework – Structure
• Organization Structure (Visible Aspect)
“ANAND PATTERN”
3 Tier
TOP:BOD of 1 elected rep.of each Milk Union
MIDDLE:17 members on the board, 12 are on chair of the affiliated primaries
BOTTOM:9 members of respective village co-op
Milk Federation
(State Level)
Milk Union(District Level)
Co-Operative Society (Village Level)
Elected Mgt. Committee
A.G.M A.G.M
A.G.M A.G.M
G.M G.M
G.M G.M
M.D
Z.M
Z.M
Z. M
Z.
M
S.O
S.OS.
O
S.P
S.P
S.P
S.O
S.P
S.O
S.P
Abbreviations M.D -Managing Director G.M - General Manager A.G.M - Assistant General Manager Z.M - Zonal Manager S.O - Sales Officer S.P - Sales Person
Application of the Framework – Structure contd……
Z.M
Application of the Framework – Structure contd.
• Invisible AspectTwo-way constant communicationDelegation of responsibilities
Role clarity in the reporting system No internal competition Economies of scale achieved
Application of the Framework - Strategy
Transformation
Diversification
Umbr
ella
Brand
ing
Advertising
Alliances
•Alliances
-Forging alliances with co-ops. across India to help in procurement and mfg.
-Equitable alliances with organized retail chains
•Strategy ofjust-in-time inventory
Cu
stom
erF
eed
bac
kP
rici
ng
AMUL
Application of the Framework - Systems
* * Ho = method or form
Shin = shiny needle or compassHoshin = ‘way of setting direction’Kanri = ‘control or management’
* Info. Mgt.-automated milk collection system
-customized ERP system
-data analysis software
-all zonal, regional and member dairies through VSAT
-.coop domain to position its brand
* * *
Soft Ss Begin…Application of the Framework - Staff
• Requirements:
ComputerLiteracy
Dedication
The role of HRD starts from here…
Application of the Framework - Skills
Superior Brand
Building
Effective Supply Chain
Management
Unmatched
Distribution Reach
Core Competence
Implementation of best practices
…..That’s also the shared value
Application of the Framework –Style
Distributed &
Exercised
Components:
-building networks
-co-ordination for competitiveness
(bureaucracy away and autonomy to the managers) -technology for effectiveness
LeadershipInspirational
Ownership
Transformational
Application of the Framework – Shared Values
Maintenance of the firm’s corporate culture
• carry on the battle to ensure greater food security, prosperity, and peace to the world
• co-operative culture, co-operative networking, market acumen and respect for both producer and the consumer
• True development involves building the institutional capacity to respond to new and diverse challenges; to adapt, to innovate and to create newer institutional forms
• Best Practices (Knowledge Sharing): a skill well-developed
EmpowerIndia's Rural Producersrecognize the tremendous resource that Indian farmers represent
resource+professional manager =return India to its position as a surplus producer
Thus…….
Growth at AMUL is about, Managing the interaction between a number of factors
(McKinsey 7s model) Hard Ss are vital to AMUL’s growth Success of Hard Ss depend most on Soft Ss AMUL tends to all the flower pots‘Being able to grow and succeed is not about being a big
organisation- it is about being fast- having one’s finger on the pulse on all the factors (7-S)’
At Amul all the 7s co-operate with each other to make whatAmul is today, a co-operative that is an embodiment of faith – faith in the ability of Indian farmers to break the shackles of poverty and oppression.
AMUL : truly the taste of India
Yet another reason to feel proud of being an Indian………
Top Related