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3 1 McKinsey's 7S | jena y | YouTubeToText
YouTube Transcript: 3 1 McKinsey's 7S
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Video Summary
Summary
Core Theme
This lecture introduces the McKinsey 7S framework as an internal analysis tool to assess an organization's composition and identify factors contributing to its competitive advantage. It emphasizes the interdependence of seven key elements for organizational effectiveness and performance.
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welcome to our lecture in business
analysis module
in contrast to our previous module the
macro and
industry environment analysis we focus
now on specific firms
and analyze how the organization's composition
composition
can keep their competitive advantage
within the industry
we'll discuss two internal analysis
tools to aid us in assessing factors
that can be identified within an organization
organization
and how it affects business performance
and these
are the mackenzie 7s framework and the
the framework was developed in the late 1970s
1970s
by the mckenzie consultancy group in
which they have identified seven
interrelated s factors to determine the
strengths and weaknesses of the organization
organization
ensuring that all parts of the
organization work in harmony
which all connects to the shared values
of the company
the framework is categorized into two elements
elements
the hard and soft elements the top part
of the model
represents the hard elements while the
lower part
shows the soft elements of the framework
hard elements are more fixed tangible
and easier to define or identify
where management can directly influence them
them
while soft elements on the other hand
can be more difficult to describe and
are less tangible
and more influenced by culture of the organization
and for what purpose do we use the model
here are the four objectives of the
mackenzie 7s framework
one is to determine the strengths and
weaknesses of the company
to improve its performance
two is to prepare the future effects or
changes within the company
and also to align departments and
processes within the company during
mergers or acquisition and
the framework determines the different possibilities
possibilities
when implementing a proposed strategy or changes
changes
your company can handle
now let's define the every s element in
the framework
and what they mean let's start with
shared values which is in the middle or
core of the framework shared values is
the core values
beliefs and principles of the company
that are evidenced in the corporate
culture and general work ethic
these are the motivational drivers that
unite and gives direction to the people
working there statements in the shared
value would be meaningless unless
supported by the other elements in the framework
framework
for example mapua's shared value
is the desired core values which are discipline
discipline
excellence commitment integrity
and relevance another example
is from the heights company
the producer of heinz ketchup
heinz launched a micronutrient campaign
to combat the threat of iron deficiency anemia
anemia
and vitamin and mineral malnutrition
among infants and children in the
developing countries
and so they distributed sachets of
vitamin and
mineral powders so that a child's
micronutrient needs for a year
can be met
the next s in the framework is strategy
in strategy we assess the short and
long-term plan of the organization
device to maintain and build competitive advantage
advantage
over rival firms what are the strategies
being implemented in the organization
and do they meet the needs of your
customer more effectively
than your competitors
another element is structure
which refers to the way how the company
is organized
and structured to work together
the basic organization of the company
its department
reporting lines who reports to whom
and the last element under the heart category
category
is the systems these are the formal
and informal procedures and processes
that govern the daily activities of the
employees or staff members
engaged in getting the job done
it may also be manual and automated
covering everything from management
information systems
point-of-sale system or customer
now we move to the soft elements of the framework
framework
under soft elements is the skills
skills in mackenzie's framework is
referred to as the company's distinctive
competencies and capabilities
as to what the company does best or
what are they known for for example
mapua is known as the best producer of
engineering graduates
thus known as the best engineering
school in the philippines moving to the
staff element
the staff element pertains to the
company's people resources
demographic credentials and
odd other attitudinal characteristics
the competencies of the employees and
their general capabilities
it also includes how they are developed
trained and motivated and lastly
the style this refers to the leadership
approach of tap management
and the company's overall operating approach
approach
this is the style of leadership adopted
to govern the organization
from the top level to its divisional level
the 7s model emphasizes the theory of interdependence
interdependence
of the seven elements that they need to
be aligned
and mutually reinforcing for an
organization to perform well
the value that is shared within the
company would have no significance
unless the organization has the strategy
skills systems and capable staff to
support it
similarly outstanding skills are not enough
enough
if the organization does not have good leadership
leadership
and employees are not empowered to make decisions
decisions
and apply the skills to satisfy customer wants
so the question is how do we use the model
model
here are the steps first is to analyze
every s in the framework based on the
current situation of the organization
write down your analysis and use facts
in identifying gaps and inconsistencies
between the elements
at the end of each analysis determine
the degree of development of the element
in comparison to your desired endpoint
if it is strong moderate or weak
and lastly recommend action
or operational plan on elements
that needs to be developed adjusted or improved
improved
to align the elements so that your
organization works
effectively and ensure the achievement
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