Seema Lall

on
McKinsey 7-S Framework
of
Gujarat Cooperative Milk Marketing Federation
(AMUL)
A Presentation by :-:
McKinsev 7-S Framework
Source : http://www.buildingbrands.com
Hard Ss
SoIt Ss
HARD Ss
Structure
Strategy
Systems
SOFT Ss
StaII
Skills
Style
Shared -
Values
McKinsev 7-S framework
exemplifies...
Seven areas of an organisation- must work in
harmonv
ements- interinked and affected bv one
another
Crowth- managing the interaction between a
the 7 factors
HARD Ss
Structure
Strategy
Systems
SOFT Ss
StaII
Skills
Style
Shared -
Values
McKinsev 7-S Framework
& AMUL
The 7-S could be a useIul 'laundry list oI things to consider when
assessing internal "Iit" or coherence
The Hard Ss and the SoIt Ss together give an eIIective Iramework Ior,
analyzing the organization and its activities
exploring the extent to which the company is working coherently
towards a distinctive and motivating place in the minds oI the
consumers
HARD Ss
Structure
Strategy
Systems
SOFT Ss
StaII
Skills
Style
Shared -
Values
AMUL- An Overview
Situation oI Iarmers
Setting up oI Kaira District Co-operative Milk Producers' Union
Setting Up oI Guiarat Cooperative Milk Marketing Federation
To diIIerentiate its high quality products, KCMPUL decided to
brand its produce
Hence, Amul` was born; derived Irom the Sanskrit word
Amulya`, meaning priceless, also stood Ior 'Anand Milk Union
Limited'
The Co-
operative:
Guiarat
Cooperative
Milk
Marketing
Federation
The Brand:
Amul
Brand larger
than the co-
operative
Amul part
oI our
culture
Hard Ss Begin.
Application of the Framework Structure
Organization Structure (Visible Aspect)
ANAND
PATTERN
Tier
TOP:BOD oI 1
elected rep.oI
each Milk
Union
MIDDLE:17
members on the
board, 12 are
on chair oI the
aIIiliated
primaries
BOTTOM:
9 members oI
respective
village co-op
Milk
Federation
(State Level)
Milk Union
(District Level)
Co-Operative Society
(Village Level)
Elected Mgt.
Committee
A.G.M
A.G.M
A.G.M
A.G.M
G.M
G.M
G.M G.M
M.D
S
.
P
S.P
Abbreviations
M.D
-anaging
Director
G.M
- Cenera
anager
A.G.M
- ssistant
Cenera
anager
.M
- ona
anager
S.O
- Saes Officer
S.P
- Saes Person
Application of the Framework Structure
contd..
Application of the Framework Structure
contd.
Invisible Aspect
Two-way constant communication
Delegation of responsibilities
Role clarity in the reporting system
No internal competition
Economies of scale achieved
Application of the Framework
- Strategv
Advertising
Alliances
-Forging
alliances with
co-ops.
across India
to help in
procurement
and mIg.
-Equitable
alliances with
organized
retail chains
Strategy oI
iust-in-time
inventory
C
u
s
t
o
m
e
r
F
e
e
d
b
a
c
k
AMUL
Application of the Framework
- Svstems
Ho method or Iorm
Shin shiny needle or compass
Hoshin way oI setting direction`
Kanri control or management`
*Info. Mgt.
-automated milk
collection system
-customized ERP
system
-data analysis
soItware
-all zonal,
regional and
member dairies
through VSAT
-.coop domain to
position its brand
*

SoIt Ss Begin.
Application of the Framework - Staff
Requirements:
Compute
r
Literacy
Dedication
The role oI
HRD starts
Irom
here.
Application of the Framework - Skills
Superior
Brand
Building
Effective
Supply
Chain
Management
Unmatched
Distribution
Reach
Core
Competence
Implementation
of best practices
...
That`s also the
shared value
Application of the Framework Stvle
Distributed
&
Exercised
Components:
-building
networks
-co-ordination
Ior
competitiveness
(bureaucracy
away and
autonomy to
the managers)
-technology
Ior
eIIectiveness
Leadership
Inspirational
Ownership
TransIormational
Application of the Framework
Shared Jalues
Maintenance oI the Iirm`s corporate culture
carry on the battle to ensure greater Iood security, prosperity, and
peace to the world
co-operative culture, co-operative networking, market acumen and
respect Ior both producer and the consumer
True development involves building the institutional capacity to
respond to new and diverse challenges; to adapt, to innovate and to
create newer institutional Iorms
Best Practices (Knowledge Sharing): a skill well-developed
Empower
India's
Rural
Producers
recognize
the
tremendous
resource that
Indian
Iarmers
represent
resource
proIessional
manager
return India
to its position
as a surplus
producer
%hus...
Growth at AMUL is about,
Managing the interaction between a number oI Iactors
(McKinsey 7s model)
Hard Ss are vital to AMUL`s growth
Success oI Hard Ss depend most on SoIt Ss
AMUL tends to all the Ilower pots
Being able to grow and succeed is not about being a big
organisation- it is about being Iast- having one`s Iinger on
the pulse on all the Iactors (7-S)`
At Amul all
the 7s co-
operate with
each other to
make what
Amul is today
, a co-
operative that
is an
embodiment
oI Iaith Iaith
in the ability
oI Indian
Iarmers to
break the
shackles oI
poverty and
oppression.
AMUL . trulv the taste of India
Yet another reason to feel proud of
being an Indian...