Mckinsey Model Essay Example for Free

Mckinsey Model EssayMcKinsey 7S ModelThis model was developed in the 1980s by Robert waterman, Tom Peters and Julien Philips whilst working for McKinsey and originally presented in their phrase Structure is not Organisation. To quote them Intellectually all managers and consultants know that much more goes on in the process of organizing than the charts, boxes, dotted lines, position descriptions, and matrices can perchance depict. But all too often we playact as though we didnt know it if we want transform we change the structure. Diagnosing and solving organisational problems means looking not merely to structural reorganization for answers but to a framework that includes structure and several related factors. The 7S Model which they developed and presented became extensively used by mangers and consultants and is one of the cornerstones of organizational analysis. picEssentially the model says that any organisation can be best described by the seven interconnected ele ments shown aboveStrategyPlans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers. StructureThe way the organizations units relate to each other centralized, functional divisions (top-down) decentralised (the trend in larger organizations) matrix, network, holding, etc. SystemsThe procedures, processes and routines that characterize how important work is to be done financial systems hiring, promotion and performance appraisal systems information systems. Skills typical capabilities of personnel or of the organization as a whole. StaffNumbers and types of personnel within the organization.StyleCultural style of the organization and how key managers behave in achieving the organizations goals. Shared ValueThe interconnecting centre of McKinseys model is Shared Values. What the organization stands for and what it believes in. Central beliefs and attitudes.However the model is more than simply a list.Key Points are 1 . The top3, strategy , structure and systems, are the hard elements. The bottom 4, skills, staff, style, and shared values are the soft elements. 2. At that time, any organisational mull focused on the top hard elements and ignored the bottom soft elements. 3. The current view is to focus on all 7, accepting that for each work or enterprise, two or three go forth be the VITAL ones. 4. The key point is that all the elements are all inter-dependant. Changes in one will have repercussions on the others. Thus introduction of new systems will certainly affect skills, and may well effect structure, style and staff. It could even have an involve on strategy. Similar repercussions occur with decentralization. 5. If you just try to change one element on its own, the other element may well resist the change and try to maintain the status quo. 6. In this sense, any change in organisation is best seen as a shift in the whole picture. Waterman Jr., Robert H., Peters, Thomas J., and Julien R. Phillips. 1980. STRUCTURE IS NOT ORGANIZATION. Business Horizons 23, no. 3 14