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Group: Maliha Sameeni, Zoya Ishaq, Zara Imran, Mirha Masood, Nida Salam MphilMphil- Marketing -- Strategic Marketing

Planning 12-0712-07-12

MCKINSEY 7S FRAMEWORK A value based management (VBM) model for describing how a company can be organized holistically and effectively Developed by well-known business consultants Robert H. Waterman, Jr. and Tom peter in 1980 Strategic vision for groups to include businesses, business units and teams Framework is used to assess & monitor changes in internal situation of organization Framework can be used as static picture, or as two-fold with current state & intended future The 7 S of framework are Structure, Strategy, Systems, Skills, Style, Staff and Shared Values. All elements must be analyzed for consistency, alignment, conflicts, gaps, support, strengths, weaknesses To analyze how well an organization is positioned to achieve its intended objective

Objective of Framework

Usage Improve the performance of a company Examine the likely effects of future changes within a company Align departments and processes during a merger or acquisition Determine how best to implement a proposed strategy The Seven Interdependent Elements 1. STRATEGY Plan for firms resource allocation, environment, competition, customers Action plans for reaching identified goals, set of decisions & sustainable advantage over competition It essentially deals with three questions: o 1) where the organization is at this moment in time

o 2) where the organization wants to be in a particular length of time o 3) how to get there. 2. STRUCTURE Organizational chart depicting the way units relate to each other Organizations are structured according to their objectives and culture. Structure also includes associated information such as o Hierarchy of authority & accountability o Centralization vs decentralization o Functional division vs matrix organization o Network, holding etc 3. SYSTEMS Flow of activities, procedures and processes involved in daily operations of business It includes core processes plus support systems Few things included in system are: o Business Process Management System (BPMS) o Management information system o Innovation system o Performance management system o Financial system/capital allocation system o Compensation system/reward system o Customer satisfaction monitoring system o Hiring 4. SHARED VALUES The inter-connecting center of McKinsey model Depicts the organizational central beliefs and shared values around which an organization is built Values must be explicitly stated as both corporate objectives & individual values This may be to achieve money or to achieve excellence in a particular field Values are necessary to keep up team spirit, avoid conflicts and encourage coherent work 5. SKILLS Dominant, distinctive &core competencies of personnel or organization as a whole 6. STYLE Refers to cultural style of an organization, dominant values, beliefs and norms How managers behave in achieving goals, collectively spend time & attention, use symbolic behaviour Traditionally companies have military management style, which is now converting to innovative & friendly management style 7. STAFF Number & type of personnel within the organization; central importance in organization Along with MIS support, there exist a knowledge based society, crucial to a firms success Companies focus on hiring best staff, give them rigorous training, mentoring support & positively pushing them to limits in achieving professional excellence Knowledge-based employees are one of the competitive advantage of big names - -e.g, Steve Jobs in Apple Inc.

Elements of 7S Strategy Application to Digital Marketing Team Significance in influencing supporting organizations strategy & Key Issues

Gaining appropriate budgets & demonstrating ROI Techniques for using digital marketing Techniques for aligning digital strategy with organizational & marketing strategy Integration of team with other management, marketing & IT staff Use of cross-functional teams & steering groups Insourcing vs outsourcing Campaign/planning approach for integration Managing/sharing customer information Unified reporting In-house vs external technology solutions Staff skill in specific area: specific e-marketing approaches, email marketing, online advertising etc Relates to role of digital marketing team in influencing strategy


Modification of organizational structure for support Development of specific processed & procedures or IS for support Distinctive capabilities; interpreted as specific skill set of team members Way in which key managers behave in achieving organizations goals as well as cultural style Breakdown of staff in terms of their background & characteristics such as IT vs Marketing, use of contractors/consultants, age & sex etc Guiding concepts of digital marketing organization; becoming part of shared values & culture





Achieving senior management involvement Virtual working Staff development & training Improving perception of importance effectiveness of digital marketing among all &

Shared Values

Limitations of the 7S framework: In his book HYPER-COMPETITION, DAveni mentioned that competitive environment is often so fast that the stability assumptions built into McKinsey's approach are dysfunctional, and that organizations need more speed, agility and capacity for coping with uncertainty to prosper. D'Aveni's "New 7S Framework" identifies 1) Stakeholder Satisfaction 2) Strategic Soothsaying (good sense of where the world is going) 3) Speed 4) capability to Surprise rivals 5) ability to Shift the Rules of competition 6) capable Signaling 7) Simultaneous and Sequential Strategic Thrusts Using McKinsey at operational level results in development of overly bureaucratic control system so it can be used as a checklist, but no more