[Value&Knowledge-Strategy] 7S Framework - Mckinsey

Summarized by Warren.pak  
From Naver blog. www.chrisfoxinc.com , Wikipedia

Mckinsey - 7S Framework 이 모델은 전략모델 범위에서 조직개발 및 조직 혁신모델의 범주에 들어간다.
조직 개발 혁신 전략으로서  7가지 요소인 Strategy, Structure, Systems, Shared Values, Style, Staff, Skills을 사용하였다.

1) Strategy
  - 전략이 선행되어야 한다. 이 전략을 수행할 조직은 어떻게 만들고 구조화해야 하는가
  - 기존전략에 대한 재검토, 재설정 부터 경쟁우위, 자원역량, 포지셔닝을 검토하여 구체화한다.

2) Structure
  - 전략을 기반으로 조직의 구조를 정하는 요소이다. 사업분야, 사업범위 , 단위별로 나누거나 합친다.
  - 조직전략에서 핵심적인 요소

3) Systems
  - 시스템이란 조직구성원의 의사결정의 모든체계라고 볼수 있다. 조직의 운영에 대한 강한영향력과 무기로 작용한다.
  - 시스템은 궁극적으로 문화로 변화한다.

4) Share Values
  - 공유되는 가치는 조직이 가진 사명에서 출발되고 만들어진다. 작은 조직의 경우 리더에 의해 만들어 지고 공유되어야 한다.
  - 존재의 이유
  - 모든 구성원이 조직의 존속과 성공에서 결정적 영향력을 행사하는 것이다.

5) Style
- 2가지로 구분된다. 개인이 가진 본연의 스타일과 조직의 구성원으로서 스타일

6) Staff
  - 기업의 요구하는 구성원의 유형이다.
  - 비전을 공유하고 조직의 전략을 실행하도록 만들어내는 전체적인 조직 역량의 부문

7) Skills
  - 시장에서 요구하는 기술과 보유하고 있는 기술
  - 전략을 실행하는 능력이나 역량
  - 5S(Structure, Systems, Staff, Style, Share Values)에 대한 변화와 변혁의 도구

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Hard Elements :Strategy,Structure,Systems
Soft Elements  :Shared Values,Skills,Style,Staff

Strategy:
- What is our strategy?
- How to we intend to achieve our objectives?
- How do we deal with competitive pressure?
- How are changes in customer demands dealt with?
- How is strategy adjusted for environmental issues?

Structure:
- How is the company/team divided?
- What is the hierarchy?
- How do the various departments coordinate activities?
- How do the team members organize and align themselves?
- Is decision making and controlling centralized or decentralized?
- Is this as it should be, given what we're doing?
- Where are the lines of communication? Explicit and implicit?

Systems:
- What are the main systems that run the organization? Consider financial and HR systems as well as communications and document storage.
- Where are the controls and how are they monitored and evaluated?
- What internal rules and processes does the team use to keep on track?

Shared Values:
- What are the core values?
- What is the corporate/team culture?
- How strong are the values?
- What are the fundamental values that the company/team was built on?

Style:
- How participative is the management/leadership style?
- How effective is that leadership?
- Do employees/team members tend to be competitive or cooperative?
- Are there real teams functioning within the organization or are they just nominal groups?

Staff:
- What positions or specializations are represented within the team?
- What positions need to be filled?
- Are there gaps in required competencies?

Skills:
- What are the strongest skills represented within the company/team?
- Are there any skills gaps?
- What is the company/team known for doing well?
- Do the current employees/team members have the ability to do the job?
- How are skills monitored and assessed?
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McKinsey's 7-S

McKinsey & Co's 7S framework provides a useful framework for analysing the strategic attributes of an organisation. The McKinsey Consulting Firm identified strategy as only one of seven elements exhibited by the best managed companies.

Strategy, structure and systems can be considered the "hardware" of success whilst style, staff, skills and shared values can be seen as the "software".

Companies, in which these soft elements are present, are usually more successful at the implementation of strategy.

The 7-Ss are:

• Shared values
• Structure
• Systems
• Style
• Staff
• Skills , and
• Strategy .

There is no particular order to the 7Ss.

Each of the 7Ss is elaborated on below:

Shared Values

Shared values means that the employees share the same guiding values. Values are things that you would strive for even if they were demonstrably not profitable. (Example: The Christians being fed to the Lions.)

Values act as an organisation's conscience, providing guidance in times of crisis.

Example

'The "famous" Johnson & Johnson Tylenol case is an example where a credo helped provide guidelines for practical decision making. When tainted Tylenol was discovered, J&J's leaders could quickly make a decision to immediately, publicly, remove all Tylenol from the nation's shelves, because they were following the organisation's credo - which said that J&J's first responsibility was to provide quality products to doctors, nurses and patients. This dramatic action helped unsure a reinstatement of both public trust and employee pride in the integrity of the company, and led to higher long term sales.'

Identifying corporate values is also the first essential step in defining the organisation's role in the larger community in which it functions.

Strategy

The integrated vision and direction of the company, as well as the manner in which it derives, articulates, communicates and implements that vision and direction.

Structure

The policies and procedures which govern the way in which the organisation acts within itself and within its environment. The organigram (e.g. hierarchical or flat) as well as the group and ownership structure are included here. Also note Porter's categorisation of group structures: Efficient allocators of Capital; Allocation of Resources, etc.

Systems

The decision making systems within the organisation can range from management intuition, to structured computer systems to complex expert systems and artificial intelligence. It includes

• Computer Systems,
• Operational Systems,
• HR Systems,
• etc.

Style

Style refers to the employees shared and common way of thinking and behaving - unwritten norms of behaviour and thought:

• Leadership Style
• Organisational Culture

Skills

Skills refers to the fact that employees have the skills needed to carry out the company's strategy. Training and Development - ensuring people know how to do their jobs and stay up to date with the latest techniques.

Staff

Staff means that the company has hired able people, trained them well and assigned them to the right jobs. Selection, training, reward and recognition, retention, motivation and assignment to appropriate work are all key issues.

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McKinsey & Company is a privately owned management consulting firm that focuses on solving issues of concern to senior management in large corporations and organizations.

Known among its employees and clients simply as "The Firm" [1], James O. McKinsey & Company was founded in Chicago in 1926 by James O. ("Mac") McKinsey. McKinsey was a professor at the University of Chicago who pioneered budgeting as a management tool. Marshall Field's became a client in 1935, and soon convinced James McKinsey to leave the firm and become its CEO; however, he died unexpectedly in 1937.

Marvin Bower, who joined the firm in 1933 and succeeded James McKinsey when he left, oversaw the firm's rise to global prominence. When McKinsey died, the Chicago and New York branches of the firm split up. In 1939, with the help of the New York partners, Bower resurrected the New York office and named it McKinsey & Company. While he always gave James McKinsey credit for the firm's success, Bower established many of its guiding principles. Inspired by his experience at the law firm of Jones Day, he believed that management consulting should subscribe to the highest standards, emphasizing professionalism over any other consideration.

For many years, McKinsey was the unchallenged leader in consulting, and many of its alumni went on to head leading companies, often their former clients, generating further business for the firm. It now maintains offices on all continents (except Antarctica) and in most major cities; in the last few years, the majority of its work has derived from non-U.S. clients.