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MCKINSEY’S ‘7’ S MODEL
WIM 6- STRATEGY STRUCTURE
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7’S FRAMEWORK •CONCEPT •EVOLUTION •STRUCTURE (7S) • - RESPONSIVE/ ADOPTIVE
INITIATING CHANGES •INCREMENTAL •TRANSFORMATION •QUICKFIX •TINKENRING
08 - 7 S' MODEL-F7-2
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MCKINSEY’S ‘7’ S MODEL
WIM 6- STRATEGY STRUCTURE
F0
7’S FRAMEWORK CONCEPT EVOLUTION STRUCTURE (7S) - STRATEGY - STRUCTURE - SYSTEM - S
KILLS - SHARE VALUES - STYLE - STAFF RESPONSIVE/ ADOPTIVE
INITIATING CHANGES •INCREMENTAL •TRANSFORMATION •QUICKFIX •TINKENRING
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MCKINSEY’S ‘7’ S MODEL CONCEPT EVOLUTION
F1
•STRATEGIC EXCELLENCE IS NOT ENOUGH- FOR ORGNIZA’AL SUCCESS• NEEDS SUPPORTING VARIABLE
S FOR- IMPLEMENT’N EXCELLENCE “SEARCH OF EXCELLENCE”- RESEARCH ON US BEST RUN COS. BY-
TOM PETERS & WATERMAN •ELABORATED BYMCKINSEY’S AS- 7’S FRAMEWORK FOR ORG’AL SUCCESS. ST
AFF STYLE SHARED VALUES STRATEGY 7 ‘ S- VARIABLES MEANING/EFFECT •PLAN FOR RESOURCES
ALLOCATION- TO REACH IDENTIFIED GOAL. •ORG’AL CHART– SEPARATE ENTITY &LINKAGE. •PROCEGE
RILISED REPORTS/ ROUTINISE PROCESS EX: HORIZONTAL/ TANGENTIAL REPORTS •ORGANISATIO
N’S -LEARNING ABILITY •CONCEPT ORG’N IMBURSES WITHIN MEMBERS [ETHICS/ HONESTY/ EQUALIT
Y/] •CHARACTERISATION OF KEY MGR WHILE ACHIEVING ORIGINAL GOALS. •DEMOGRAPHICS OF CA
TEGORIES WITHIN FIRM 08 - 7 S' MODEL-F7-2 •INFOSYS •INFOSYS -FANIS MURTHY EPISODE AU
TOCRATIC- BAJAJ AUTO OPPORTUNIST- RELIANCE AVG. AGE – MUL LOWEST INFOSYS -KNOWLEDG
E CAMPUS
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SKELETON SYSTEM SKILLS EX •TATA GOING GLOBAL-TETLEY TO KORUS TO FBIP. • LM.MITTAL –STE
EL ACQUISITION •TATA EMPIRE-TATA SONS LINKAGE –BIRLA’S- TALLY P&L A/C DAILY
VARIABLE STRATEGY
SKELETON SYSTEM SKILLS SHARED VALUES STYLE STAFF
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ATTRIBUTES IN EXCELLENT INNOVATIVE CO’S
CENTRALISED/ DECENTRALISED LEAN SIMPLE FORM & STAFF STICK TO CORE COMPETANCY ATT
RIBUTES BIAS FOR ACTION CUSTOMER PROXIMITY AUTONOMY/ ENTRE’SHIP PRODUCTIVITY VALUE
DRIVEN LEAN ORG’AL FORM STICK CORE COMPETANCY CENTRALISED/ DECENTRALISED BIAS FOR
ACTION CUSTOMER PROXIMITY AUTONOMY /ENTRE’SHIP PRODUCTIVITY EX •BAJAJ AUTO- PRODUCT
MIX / PRODUCTIVITY
F
ATTRIBUTES
VALUE DRIVEN MEANING
•DECISION-MAKING- ANALYTICAL IMPLEMENTATION- SWIFT/ FIRM •LEARN FROM- FAILURES/ COMP
LAINTS/ •ENCOURAGE – INNOVAT’N & RISK TAKING •ROOT SOURCE OF- COST REDUCTION/ PRODUCT RE
LIABILITY •STRATEGIES FACTORS/ ACHIEVEMENT- WITHIN •SIMPLE FORM –ORG’NAL PHILOSOPHIES MI
N LEVELS/ ACCESSIBILITY • FOCUS- ON CORE COMPETANCY •CENTRALISED – CORE VALUES/ STRATE
GIES • DECENTRALISED- AUTONOMY DOWN THE LINE 08 - 7 S' MODEL-F7-2
•SONY/ MICROSOFT- UPDATES/ USER FRIENDLY /HELP LINE •HUL- INTRAPRE’SHIP •TOYOTA – SUGGESTI
ON SCHEME •TATA – HONESTY/ ETHICS •TATA STEEL- RUSI MODI •LM MITTAL – STEEL • BP /ONGC– OIL
ALLIED •TATA /INFOSYS
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IMPLEMENTING CHANGES CHANGE MAGNITUDE QUICKFIX TINKERING CHANGE TRANSFORMATION /
RADICAL CHANGE INCREMENTAL / RADICAL CHANGE
F
TIME SCALE (YRS) STEP INCREMENTAL / RADICAL CHANGE MEANING/EFFECT •PROCESS- CONTIN
UE - MODERATE/ LINKED STEPS • STEPS ADOPTS - CHANGE STRATEGY/ CONDITIONS. •CRITICALI
TIES • SATISFACTION- CONFIDENCE OF PAST SUCCESS • NO TIME LIMIT- CONTINUES TILL ORG’N
EXISTS. •PROCESS • CHALLENGES- ALL EXISTING ASSUMPTIONS • PROFOUND CHANGES- BEYOND REC
OGNITION •CRITICALITIES • SUITS IN - SEVERE CRISIS/ 3-5 YRS. • FUNDAMENTAL- STRATEGY C
HANGE • CHANGES- PAINFUL / BLOOD BATH • PRACTICED IN- MGT CHANGE / BUYOUT • AFTER STAB
ILITY- HAS TO CHANGE TO INCREMENTAL CHANGE EX •MANMOHAN SINGH – -1-2-3 NUCLEAR AGREE
MENT. •REFORMS SINCE 90’S •CHINA- AFTER MAOISM-70S •JACK WELCH OF GE •RAHUL BAJAJ – BAJAJ A
TO TURN AROUND 96-97 ‘IACOCA’- OF CHRYSLER MOTORS.
TRANSFORMATION/ RADICAL CHANGE
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QUICKFIX
•APPROACH •PKGE WITH-LABEL- RESTRUCT’G/ REORGANISING/ INTEGRAT’N • BY- CONSULTANTS •CRITICA
ITIES • SHORT TIME-SPAN- 1/ 2YRS • EFFECTIVE FOR- LONG ESTABLISHED ORG’NL BEHAVIOUR • FO
CUS ON ONLY ONE ASPECT AT TIME – ORG’NL – SYSTEM/ CULTURE/ STRUCTURE •APPROACH • OCCASSION
AL /UNRELATED- MINOR ORG’NAL CHANGES IN HOPE OF SUCCES CRITICALITIES • FREQUENTLY CH
ANGING/ CONFUSED FOCUS [VOLUME/ TQM/ ISO 9000/ COST/ GLOBAL]
•AJAY PIRAMAL GROUP
–VRS/ CLOSURES – TURNAROUND – ACQUISITIONS
TINKERING CHANGE
•MAHANAGAR PALIKA •GOVT.
END
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