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 8 MCKINSEY’S ‘7’ S MODEL WIM 6- STRATEGY STRUCTURE F0

7’S FRAMEWORK INITIATING CHANGES

•CONCEPT •INCREMENTAL
•EVOLUTION •TRANSFORMATION
•STRUCTURE (7S) •QUICKFIX
• - RESPONSIVE/ ADOPTIVE •TINKENRING

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 8 MCKINSEY’S ‘7’ S MODEL WIM 6- STRATEGY STRUCTURE

F0

7’S FRAMEWORK INITIATING CHANGES

CONCEPT •INCREMENTAL
EVOLUTION •TRANSFORMATION
STRUCTURE (7S) •QUICKFIX
- STRATEGY •TINKENRING
- STRUCTURE
- SYSTEM
- SKILLS
- SHARE VALUES
- STYLE
- STAFF
RESPONSIVE/ ADOPTIVE

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 MCKINSEY’S ‘7’ S MODEL F1
CONCEPT •STRATEGIC EXCELLENCE IS NOT ENOUGH- FOR ORGNIZA’AL SUCCESS-
• NEEDS SUPPORTING VARIABLES FOR- IMPLEMENT’N EXCELLENCE
EVOLUTION “SEARCH OF EXCELLENCE”- RESEARCH ON US BEST RUN COS. BY- TOM PETERS & WATERMAN
•ELABORATED BY- MCKINSEY’S AS- 7’S FRAMEWORK FOR ORG’AL SUCCESS.

STAFF STRATEGY SKELETON

STYLE SYSTEM
7 ‘ S- VARIABLES
SHARED VALUES SKILLS
VARIABLE MEANING/EFFECT EX

STRATEGY •PLAN FOR RESOURCES ALLOCATION- •TATA GOING GLOBAL-

- TO REACH IDENTIFIED GOAL. -TETLEY TO KORUS TO FBIP.
• LM.MITTAL –STEEL ACQUISITION

SKELETON •ORG’AL CHART– SEPARATE ENTITY &LINKAGE. •TATA EMPIRE-TATA SONS LINKAGE

SYSTEM •PROCEGERILISED REPORTS/ ROUTINISE PROCESS –BIRLA’S- TALLY P&L

EX: HORIZONTAL/ TANGENTIAL REPORTS A/C DAILY

SKILLS •ORGANISATION’S -LEARNING ABILITY •INFOSYS

SHARED VALUES •CONCEPT ORG’N IMBURSES WITHIN MEMBERS •INFOSYS -FANIS MURTHY EPISODE
[ETHICS/ HONESTY/ EQUALITY/]

STYLE •CHARACTERISATION OF KEY MGR WHILE AUTOCRATIC- BAJAJ AUTO

ACHIEVING ORIGINAL GOALS. OPPORTUNIST- RELIANCE
STAFF •DEMOGRAPHICS OF CATEGORIES WITHIN FIRM AVG. AGE – MUL LOWEST
INFOSYS -KNOWLEDGE CAMPUS

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 ATTRIBUTES IN EXCELLENT INNOVATIVE CO’S F

CENTRALISED/ DECENTRALISED BIAS FOR ACTION CUSTOMER PROXIMITY

LEAN SIMPLE FORM & STAFF AUTONOMY /ENTRE’SHIP
ATTRIBUTES
STICK TO CORE COMPETANCY PRODUCTIVITY
VALUE DRIVEN
ATTRIBUTES MEANING EX

BIAS FOR ACTION •DECISION-MAKING- ANALYTICAL •BAJAJ AUTO- PRODUCT MIX

IMPLEMENTATION- SWIFT/ FIRM / PRODUCTIVITY

CUSTOMER PROXIMITY •LEARN FROM- FAILURES/ COMPLAINTS/ •SONY/ MICROSOFT- UPDATES/

USER FRIENDLY /HELP LINE

AUTONOMY/ ENTRE’SHIP •ENCOURAGE – INNOVAT’N & RISK TAKING •HUL- INTRAPRE’SHIP

PRODUCTIVITY •ROOT SOURCE OF- COST REDUCTION/ PRODUCT •TOYOTA – SUGGESTION

RELIABILITY SCHEME
VALUE DRIVEN •STRATEGIES FACTORS/ ACHIEVEMENT- WITHIN •TATA – HONESTY/ ETHICS
ORG’NAL PHILOSOPHIES

LEAN ORG’AL FORM •SIMPLE FORM – MIN LEVELS/ ACCESSIBILITY •TATA STEEL- RUSI MODI

STICK CORE COMPETANCY • FOCUS- ON CORE COMPETANCY •LM MITTAL – STEEL

• BP /ONGC– OIL & ALLIED

CENTRALISED/ •CENTRALISED – CORE VALUES/ STRATEGIES •TATA /INFOSYS

DECENTRALISED • DECENTRALISED- AUTONOMY DOWN THE LINE

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 IMPLEMENTING CHANGES
F

MAGNITUDE
QUICKFIX TRANSFORMATION

CHANGE
/ RADICAL CHANGE
TINKERING INCREMENTAL /
CHANGE RADICAL CHANGE

TIME SCALE (YRS)

STEP MEANING/EFFECT EX

INCREMENTAL / •PROCESS- CONTINUE - MODERATE/ LINKED STEPS •MANMOHAN SINGH –

RADICAL CHANGE • STEPS ADOPTS - CHANGE STRATEGY/ CONDITIONS. -1-2-3 NUCLEAR AGREEMENT.
•CRITICALITIES •REFORMS SINCE 90’S
• SATISFACTION- CONFIDENCE OF PAST SUCCESS
• NO TIME LIMIT- CONTINUES TILL ORG’N EXISTS.

TRANSFORMATION/ •PROCESS •CHINA- AFTER MAOISM-70S

RADICAL CHANGE • CHALLENGES- ALL EXISTING ASSUMPTIONS •JACK WELCH OF GE
• PROFOUND CHANGES- BEYOND RECOGNITION •RAHUL BAJAJ – BAJAJ AUTO
•CRITICALITIES TURN AROUND 96-97
• SUITS IN - SEVERE CRISIS/ 3-5 YRS. ‘IACOCA’- OF CHRYSLER
• FUNDAMENTAL- STRATEGY CHANGE MOTORS.
• CHANGES- PAINFUL / BLOOD BATH
• PRACTICED IN- MGT CHANGE / BUYOUT
• AFTER STABILITY- HAS TO CHANGE TO
INCREMENTAL CHANGE

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QUICKFIX •APPROACH •AJAY PIRAMAL GROUP
•PKGE WITH-LABEL- RESTRUCT’G/ REORGANISING/ –VRS/ CLOSURES
INTEGRAT’N – TURNAROUND
– ACQUISITIONS
• BY- CONSULTANTS
•CRITICALITIES
• SHORT TIME-SPAN- 1/ 2YRS
• EFFECTIVE FOR- LONG ESTABLISHED ORG’NL
BEHAVIOUR
• FOCUS ON ONLY ONE ASPECT AT TIME – ORG’NL –
SYSTEM/ CULTURE/ STRUCTURE

TINKERING CHANGE •APPROACH •MAHANAGAR PALIKA

• OCCASSIONAL /UNRELATED- MINOR ORG’NAL •GOVT.
CHANGES IN HOPE OF SUCCES
CRITICALITIES
• FREQUENTLY CHANGING/ CONFUSED FOCUS
[VOLUME/ TQM/ ISO 9000/ COST/ GLOBAL]

END

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