Skills Shared Values Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in the market.
What does a well-aligned strategy mean in 7s McKinsey model? So the key in 7s model is not to look at your company to find the great strategy, structure, systems and etc.
For example, short-term strategy is usually a poor choice for a company but if its aligned with other 6 elements, then it may provide strong results. Structure represents the way business divisions and units are organized and includes the information of who is accountable to whom.
In other words, structure is the organizational chart of the firm. It is also one of the most visible and easy to change elements of the framework. Systems are the area of the firm that determines how business is done and it should be the main focus for managers during organizational change.
They also include capabilities and competences. During organizational change, the question often arises of what skills the company will really need to reinforce its new strategy or new structure.
Staff element is concerned with what type and how many employees an organization will need and how they will be recruited, trained, motivated and rewarded.
Style represents the way the company is managed by top-level managers, how they interact, what actions do they take and their symbolic value.
Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide employee behavior and company actions and thus, are the foundation of every organization. The authors of the framework emphasize that all elements must be given equal importance to achieve the best results.
Using the tool As we pointed out earlier, the McKinsey 7s framework is often used when organizational design and effectiveness are at question. It is easy to understand the model but much harder to apply it for your organization due to a common misunderstanding of what should a well-aligned elements be like.
We provide the following steps that should help you to apply this tool: Identify the areas that are not effectively aligned During the first step, your aim is to look at the 7S elements and identify if they are effectively aligned with each other.
Determine the optimal organization design With the help from top management, your second step is to find out what effective organizational design you want to achieve.
By knowing the desired alignment you can set your goals and make the action plans much easier. This step is not as straightforward as identifying how seven areas are currently aligned in your organization for a few reasons.
First, you need to find the best optimal alignment, which is not known to you at the moment, so it requires more than answering the questions or collecting data. Decide where and what changes should be made This is basically your action plan, which will detail the areas you want to realign and how would you like to do that.
Make the necessary changes The implementation is the most important stage in any process, change or analysis and only the well-implemented changes have positive effects. Therefore, you should find the people in your company or hire consultants that are the best suited to implement the changes.
Continuously review the 7s The seven elements: A change in one element always has effects on the other elements and requires implementing new organizational design.
Thus, continuous review of each area is very important. The company is new, so its structure is simple and made of a very few managers and bottom level workers, who undertake specific tasks. Alignment So far the 7 factors are aligned properly.The Tobacco Industry – a Porters 5 forces analysis Essay Sample.
The twelve year return-on-equity data for the Tobacco Industry of % is substantially above the all-industry average of % given in the Business Week data.
McKinsey 7s model is a tool that analyzes firm’s organizational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff and skills, in order to identify if they are effectively aligned and allow organization to achieve its objectives.
Tesco Plc is a British based company, and is the largest food retailer in the UK.
It is one of the largest British sellers and holds third rank in retail industry after USA based company Wal-Mart and France based company Carrefour.
It sells around food products (Euromonitor, ). Tesco. INDUSTRY REPORT TOBACCO INDUSTRY Outline I Introduction II Main body A.
The products provided B. Top five firms in the industry a. The firm’s value of sales b. The number of people employed c. Profits, death and disease: big tobacco’s business model The tobacco industry is a government-owned monopoly, and the ministry that oversees the tobacco monopoly also controls key aspects of.
Industry Overview: Tobacco The Tobacco Industry is comprised of a small set of corporations that grow, sell and distribute tobacco and related products throughout the world. A variety of products, at several price points, cover most customer tastes.