Page 1 Outlines ☺ Introduction ☺ Mc Kinsey 7s ☺ Hard S’s ☺ Soft S’s
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Page 2 Mc Kinsey 7s Framework Also known as 7-S-Model or Diagnostic Model for Organizational Effectiveness.
It was given by two consultants: Tom
Peters and Robert Waterman of McKinsey & Co. in 1980.
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Page 3 The model describes that how one can holistically(functional relation between parts and the whole) and effectively organize a company. The model starts on the premise that an organization is not just Structure, but consists of seven elements which are distinguished in Hard S’s and Soft S’s.
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Page 4 Mc Kinsey 7s
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Page 5 Hard S’s The hard elements are feasible and easy to identify. These are: • Strategy; • Structure;& • System.
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Page 6 DERIVED FROM LATIN WORD: Strata. Means: Course of action.
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Page 7 Structure • The way the organization's units relate to each other: • centralized, • Functional divisions (top-down); • Decentralized (the trend in larger organizations); • Matrix, network, holding, etc.
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Page 8 System The procedures, processes and routines that characterize how important work is to be done: • Financial systems; • Hiring, promotion; • Performance appraisal systems; • Information systems.
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Page 9 Soft S’s The four soft S’s are hardly feasible & difficult to describe Continuously developing & changing. Due to the people of the organization. Difficult to plan/influence their characteristics. Have a great impact of the hard ones.
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Page 10 Shared Value • The interconnecting centers of the organization.
• Goal congruence.
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Page 11 Skills • Distinctive capabilities of personnel or of the organization as a whole. • Core Competences: the key areas of expertise which provide the organization the sustainable competitive advantage.
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Page 12 Staff Numbers and types of personnel within the organization. • Skilled • Semi-skilled • Unskilled
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Page 13 Style • Cultural style of the organization and how key managers behave in achieving the organization’s goals. • Management Styles