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McKinsey 7-S framework
model
The 7-S framework of McKinsey is a
Value Based Management (VBM)
model that describes how one can
holistically and effectively organize a
company. Together these factors
determine the way in which a
corporation operates.
Shared Value
■ The interconnecting center of
McKinsey's model is: Shared Values.
What does the organization stands for
and what it believes in. Central
beliefs and attitudes.
Strategy
■ Plans for the allocation of a
firms scarce resources, over
time, to reach identified
goals. Environment,
competition, customers.
Structure
■ The way the organization's units
relate to each other: centralized,
functional divisions (top-down);
decentralized (the trend in larger
organizations); matrix, network,
holding, etc.
System
■ The procedures, processes and
routines that characterize how
important work is to be done:
financial systems; hiring, promotion
and performance appraisal systems;
information systems.
Staff
■ Numbers and types of personnel
within the organization.
Style
■ Cultural style of the organization and
how key managers behave in
achieving the organization’s goals.
Management Styles.
Skill
■ Distinctive capabilities of personnel
or of the organization as a whole.
Core Competences.
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  • 1. McKinsey 7-S framework model The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.
  • 2. Shared Value ■ The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes.
  • 3. Strategy ■ Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers.
  • 4. Structure ■ The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.
  • 5. System ■ The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.
  • 6. Staff ■ Numbers and types of personnel within the organization.
  • 7. Style ■ Cultural style of the organization and how key managers behave in achieving the organization’s goals. Management Styles.
  • 8. Skill ■ Distinctive capabilities of personnel or of the organization as a whole. Core Competences.