Seven S


N's spirit Basic MBA > Seven S

Seven S

Seven S is a framework to consider manage an organization, which is proposed by Mckinsey & Company.

Superior firms manage themselves by mutually affecting each Seven S. For example, Strategy brings System and Structure. They affect Shared Value and it decides necessary staff and skill and finally generates unique culture. Strategy, System and Structure are called three hard S, and Shared value, Staff, Skill and Style are called four soft S.

7S Model


Strategy
Business policy to make or keep competitive superior

Structure
Organization types

System
HR system, decision making process, finance and accounting policy

Shared value
Value shared by all employees and long term goal

Skill
Organizational capability such as sales power, technologies, marketing abilities

Staff
Abilities of employees

Style
Corporate culture or implied norm of conduct


Key findings from Seven S

Three hard S can be changed easily but four soft S cannot be changed immediately. For example, if a company has product out style for a long term but now it has to prioritize marketing as below.

Product out Marketing
Strategy Product out Marketing oriented
Structure Functional organization Organization by products or customers
System Management focus Empowerment and delegation
Shared Value Low cost operation Voice of customers
Skill Daily cost management Marketing
Staff Talented people in the factories Talented people having experience marketing
Style Bureaucratic and introspective Customer oriented

In this table, you can understand four soft S is hard to be changed from left to right.

Soft S is sometimes encourages employees to follow the strategy, but it sometimes prevent the company from changing the strategy. If circumstance significantly changes, the company, of course, has to change the strategy with other two hard S. However, it also has to take care of changing four soft S at the same time, because it needs to take longer time to change than changing three hard S.


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Strategy
What is the corporate strategy?
Ansoff Matrix
PPM (Product Portfolio Management)
GE's Business Screen
Value Portfolio
Pattern of Global Strategies
Porterfs Corporate Strategy
Strategy by Positioning in an Industry
Blue Ocean Strategy
Five Forces Analysis
Advantage Matrix
Strategic Positioning Analysis
Value Chain
Deconstruction
Service Profit Chain
Resource Based View
Seven S
VSPRO Model
PEST Analysis
PLC (Product Life Cycle)
Technology Life Cycle
MOT (Management of Technology)
Economic Analysis of Business
Experience Effect
3C Analysis
SWOT Analysis
PDCA Cycle
Seven Domains
Delta Model
Process of Environmental Analysis
PMS (Product Market Strategy)
Framework of Competitor Analysis
Examples of KSF


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N's spirit Basic MBA > Seven S

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