The ‘Mckinsey 7s framework‘ is one of the most commonly used frameworks in business. This method was developed by a famous consulting firm Mckinsey and Company in 1980. It is a framework used to analyze and assess the internal alignment and coherence of an organization. This framework identifies 7 internal elements that must be aligned for a better company.
#. Mckinsey 7s framework is:
- Strategy
- Structure
- System
- Shared value
- Style
- Staff
- Skill
1. Strategy :
This element refers to the long-term plans and adjectives of the company. It includes the company mission, vision, and goals, as well as; the strategies and tactics it uses to achieve, them the strategy element of the framework required companies to identify their competitive advantage and how they will sustain it over time.
#. Strategy is used to understand :
- Organizational goal
- Market competition
- Consumer demand
- Execution problem
#. It helps you in answering 4 questions:
- What is your strategy?
- How do we intend to achieve it?
- How do we deal with changes in consumer demand?
2. Structure :
The structure element of the framework refers to the organizational design of the company including its hierarchy, reporting, lines, and departmental function. It addresses how the company’s resources are organized and how it communicates and makes a decision.
#. Structures help you understand :
- Department division
- Decision making
- Hierarchy
- Authority
- Responsibility
- Role
FOREX; Infosys created (IBU) industry business for different industries like;
1. FMCG, 2. Pharma, 3. Retail, 4. IT
3. System :
The systems element of the framework refers to the processes and procedures that the company uses to achieve its OBJECTIVE. It includes the companies policies guideline and performances management systems as well as its information technology infrastructure system to help you in understanding:
- Method
- Procedure
- Process
- Daily activity
- Measurement
- Which process, procedure, and routined to be followed
- How to control it?
- How to communicate?
- How to use technology?
- How to use CRM?
- How to send an E-Mail?
4. Shared value :
The shared value element of the framework refers to the beliefs, attitudes, and cultural norms that underpin the company’s actions and decisions. It is the foundation of the company’s culture and includes elements such as ethics social responsibility and corporate citizenships also helps in understanding companies :
- Culture
- Values
- Believes
- Standard principle
- Teamwork
FOREX; Infosy’s shared value is C-LIFE which signifies :
C-client focused, L-leadership, I-integrity, F-fairness, E-excellence
5. Skill :
The skills element of the framework refers to the competencies and capabilities that the company requires to achieve its objectives. It includes the skill of the workforce the company’s intellectual property and its technology and innovation capabilities to help in determining the:
- The right person in the right position
- Current skill set
- Training and development needs
- Coaching and mentoring needs
- Ability to do the job
6. staff :
The staff element of the framework refers to the people who work for the company. It includes the company’s recruitment, retention, and development strategies as well as its diversity and inclusion policies. The staff helps in determining :
- The right person in the right position
- Manpower planning
- Positions need to be fulfilled
- Team specialization and position are available.
7. Style :
The style element of the framework refers to the leadership style and management practices of the company. it includes the company’s communication style decision-making processes and organizational culture helps in understanding :
- Approach of leadership
- Employee participation and decision making
- Leadership effectiveness
- Competitive or co-operative
- Authority or collaboration.
Out of these 7, the top 3s are hard skills and the bottom 4s are soft skills.
Hard skills are decided by leadership and top management and soft skills are decided by the whole organization.
#. 7s framework used in the situation of
- Organizational change
- Implementing new strategy
- Merger of organization
1. Organizational change:
- #. It helps the organization in evaluating its current state: because the framework provides a structured way of evaluating the current state of the company across 7 different elements, providing a total view of the organizational strength and weaknesses of the company .this helps to identify areas that require a change.
- #. Identifying gaps: this framework can be used to identify gaps between the current and desired state of the organization, it highlights areas that require more attention.
2. Implementing new strategy:
- #. Ensures alignment: This framework can help to ensure that all elements of the organization are aligned with the chosen strategy. This includes accessing whether the structure system, skill, style, and shared value of the organization are all aligned with strategy.
- #. Identifying implementation barriers: The framework can be used to identify potential barriers to implementation. FOREX; If the structure of the organization is misaligned with the strategy, this could make it difficult to implement the strategy effectively.
- #. Monitoring progress: This framework can be used to monitor progress in implementing the strategy. By accessing each element of the organization and tracking changes over time, managers can ensure that implementation efforts are on tracking and making the desired impact.
3. Merger of organization:
- #. Ensures alignment: One of the key benefits 7s framework is that it helps to ensure alignment between different aspects of the organization in the context of a merger this can be particularly important as the two companies may have different cultures, structures, or strategies. By using the 7s framework to analyze each company’s strengths and weaknesses across seven dimensions you can identify areas of overlap and potential conflict. FOREX; If one company has a very hierarchal structure while the other is flat, this could create tension between employees. By identifying these issues early on, you can work to address them and create a cohesive organization.
- #. Identifying implementation: Another key benefit of the 7s framework is that it helps to identify areas where implementation may be necessary. in the context of a merger, this could include things like integrating IT systems, streamlining processes, or a 7s framework to analyze each company’s strengths and weaknesses, you can identify areas. where one company may have a cutter approach than the other. FOREX; If one has a more efficient supply chain process, this could be implemented across the merged organization to improve overall performance.
- #. Monitoring progress: Once the merger is underway, the 7s Framework can also be used to monitor progress and ensure that the integration is proceeding smoothly. By setting specific goals and metrics for each of the seven dimensions, you can track progress over time and identify any areas where additional work is needed.
FOREX; If the two companies have different cultures you could track progress in terms of employee engagement and morale to ensure that everyone is adjusting to the new organization.