T S Elements of the 7-S Framework

The organization chart and accompanying

baggage that show who reports to whom and Capabilities possessed by the organization as
how tasks are both divided up and integrated a whole as distinct from those of individuals.

STRUCTURE SKILLS

STAFF SHARED VALUES STRATEGY

The people in the organization, Multiple integrated sets of actions

considered in terms of that require an investment in a
organizational demographics, not variety of options
individual personalities

SYSTEMS STYLE

The processes and procedures The way managers collectively

through which things get done behave with respect to use of time,
from day to day attention and symbolic actions
Those ideas of what is right and desirable
which are typical of the organization and
common to most of its members

Source: McKinsey & Company Introductory Training Program Page • 1

 T S Structure

Structure remains the most visible element of organization; it includes

Reporting relationships (charts and boxes)

Division of labor (job descriptions)

Integrating mechanisms (special committees, etc.)

Structure is dynamic rather than static

Structure both integrates and differentiates

Source: McKinsey & Company Introductory Training Program Page • 2

 T S Systems

Systems are patterned responses to tasks; they include, among other things,

Planning
Control
Budgeting
Operations
Special committees
Compensation

Systems are excellent ways to shape attention and behavior

Systems can be both formal and informal

Source: McKinsey & Company Introductory Training Program Page • 3

 T S Staff

Staff is, of course, people; it includes

How they are sourced

How they are developed

How they are deployed

How they are motivated

Staff is tough to change

Source: McKinsey & Company Introductory Training Program Page • 4

 T S Skills

Skills are the talents (as distinct from the people, or systems) an organization
brings to bear on its business; they include

Key functions (e.g., purchasing, R&D, sales)

Predispositions (e.g., ability to manage large projects)

Skills should be seen both as potential weaknesses and as strengths

Skills are also tough to change

Source: McKinsey & Company Introductory Training Program Page • 5

 T S Strategy

Strategy is the handful of decisions that

Drive or shape most of an organization’s subsequent actions

Are not easily changed once made

Have the greatest impact on whether the organization’s strategic objectives are met

Remember that one cannot

Build an organization around a strategy (internal failure is guaranteed)

Build a strategy around an organization (external failure is likely)

The two must move in tandem

Source: McKinsey & Company Introductory Training Program Page • 6

 T S Style

Style is more tangible than it seems, and includes

Level and focus of management attention

Personality

Ways of interacting and approaches to problems

Source: McKinsey & Company Introductory Training Program Page • 7

 T S Shared Values

Shared values are the very few, consistent themes and goals which drive an organization

Source: McKinsey & Company Introductory Training Program Page • 8

 T S Coherence

What is important is coherence -- that all 7 “Ss” are balanced and consistent

OVERALL SCHEME OF THE COHERENCY CHECK

Stage 1 Stage 2 Stage 3

Determining the Assessing

Defining the strategy organizational skill organizational
requirements coherence

Steps • Review of written • Analysis of the • Use of analysis

material company’s done in prior stages
• In-depth interviews strategic eras • Organizational Skill
with all key • Translation of Analysis, linking of
executives current strategy S elements to skill
• Outline of industry into skills needs
and company key
factors for success

Summary Measure of
Detailed list of organizational
End restatement of skill requirements
organization strategy support for
products required skills

Source: McKinsey & Company Introductory Training Program Page • 9