7S
FRAMEWORK
Presented by Chandan Kumar Das
1502051
WHY 7S ?
Objective
Ensuring that all parts of the Organization work in harmony
Analysing how well a organization is positioned to achieve its intended objective
Helpful in situations like
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
7S FRAMEWORK
Recognize the full range of elements that need to be changed and focus on the ones
that will have the greatest effects
All seven variables are interconnected- to make progress in one, adjustments need to
be made in others also
THE SEVEN ELEMENTS
The McKinsey 7-S model involves seven interdependent factors which are
categorized as either "hard" or "soft" elements:
Hard Elements
Soft Elements
Strategy
Structure
Systems
Shared Values
Skills
Style
Staff
Hard elements are easier to define or identify and management can directly
influence them
Soft elements, on the other hand, can be more difficult to describe, and are
less tangible and more influenced by culture.
THE SEVEN ELEMENTS
Strategy:the plan devised to maintain and build competitive advantage over
the competition. But the key is not to look for strategy but to look if its aligned
with other elements
Example : low cost strategy, product differentiation
Structure:represents the way business divisions and units are organized and
includes the information of who is accountable to whom
Example: Functional structure, divisional structure
Systems: Formal processes and procedures to manage the organization
Example: performance measurement, reward system, budgeting, resource
allocation, information system
THE SEVEN ELEMENTS
Style:represents the way the company is managed by top-level managers, how they
interact, what actions do they take and their symbolic value. In other words, it is the
management style of companys leaders
Staff:this element is concerned with what type and how many employees an
organization will need and how they will be recruited, trained, motivated and rewarded
Skills:the actual skills and competencies of the employees working for the company.
During organizational change, the question often arises of what skills the company will
really need to reinforce its new strategy
Shared Values:called "superordinate goals" and serve as guiding principles of what
is important helps focus attention and provides a broader sense of what is important.
Values are the identity by which a company is known throughout its business areas.
STARBUCKS 7S
IMPLEMENTATION
Strategy. Starbucks concentrates on the quality of its products at the same time
offering excellent level of customer services. The main strategy for the company
is to increase revenues through effectively positioning Starbucks stores as third
place environment.
Structure. Flat management structure is maintained. It eliminated the positions of
assistant managers within the stores, after which there were only three levels of
management store manager, shift manager and customer assistants, thus
considerable amount of costs was saved and organisational efficiency increased.
Systems. Rather than daily roles among customer assistant being appointed by
shift supervisors, the rotation system of duties was introduced that reduced the
potential of conflicts among the workforce.
STARBUCKS 7S
IMPLEMENTATION
Shared values. Currently effective set of values are being promoted by
management at Starbucks, however, ensuring these values being shared and
appreciated by all members of the workforce.
Skills. Necessary training and development programs are organised in a
systematic manner and thus it ensures that all members of the workforce are
equipped with skills necessary to achieve a high level of customer satisfaction.
Style. Management style within stores has been changed to inspirational
management. In this way a greater number of the workforce can be effectively
motivated for higher performances with less financial resources.
Staf. Only capable and promising candidates are employed by Starbucks
STARBUCKS 7S
IMPLEMENTATION
The firm has a clearly defined strategy which is well communicated with both
employees and customers which helped organisations effective growth.
Due to this 7s model , Starbucks was able to leverage and replicate experience in
each of its stores.
Provided reinforcement by supplying frontline employees with the training and
skills.
7S CHECKLIST QUESTIONS
Strategy:
What is our strategy?
How do 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?
7S CHECKLIST QUESTIONS
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?
7S CHECKLIST QUESTIONS
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?
