- statistical technique in decision making that is used for the
selected major tasks that produce significant overall outcome What is McKinsey 7-S Framework? -A framework of organizational effectiveness that postulates that there are seven internal factors of an organization that need to be aligned and reinforced in order for it to be successful What is Pareto Analysis? Who will use it? When to use it? Why we use it? How we use it? What? Uses Pareto Principle also known as 80/20 rules Greater part of problems(80%) are produced by a few key causes(20%) Method of determining all the root causes of a problem and trying to determine few which have the greatest frequency / influence Its score also show how severe/serious the causes direct to the problem When? and Why? This analysis can be apply together with Ishikawa diagram (fish bone diagram) that use to identify the root factors of the problem Identifying the root factor can expedite the team to focus on the key factors of the problem This method is use to analyse internal environment of an organization or company Example Dissatisfied Customer in Retail Shop Causes (Complaint) Score / Frequency % of Total Cumulative % Unfriendly Staff 243 42.04% 42.04% Out Of Stocks 220 38.06% 80.10% Slow Response Time 30 5.19% 85.29% Miscommunication 20 3.46% 88.75% Wrong/No Price Tag 17 2.94% 91.70% Human Error 13 2.25% 93.94% Late 12 2.08% 96.02% Facilities Breakdown 10 1.73% 97.75% Incompetency 7 1.21% 98.96% Wrong Information Given 6 1.04% 100.00% Total 578 100% 100.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Dissatisfied Customer in Retail Shop % of Total Cumulative % 20% of the causes (2 out of 10) carries 80% of the complaints of the retail shop To facilitate organizational change To help implement new strategy To identify how each area may change in a future To facilitate the merger of organization
Strategic planning tools in order to identify if they are effectively aligned and allow organization to achieve its objectives. Emphasis on HR (Soft S) as a key to higher organizational performance All 7 elements interconnected and a change in one require chance in all elements in order the firm function effectively
Shared Value Structure System Style Staff Skills Strategy Sources: Mind Tools.com
Derives from assessment of organizational internal and external SWOT Must be dynamic and responsive to internal and external environment Represent major approaches adopted by the organization to achieve mission and goals
Strategy How the company is organized to execute strategy Structure may be centralized or decentralized Facilitate in achieving mission and goals
Structure Process and procedure of the organization that staff engage in to get the job done Systems
Capabilities and competences of the employees to perform well Skills What type and how many employees an organization will need and how they will be recruited, trained, motivated and rewarded. Staffs Core of the Mckinsey model Norms and standards that guide employee behavior and company actions Shared Values Managements style of company leaders in how they interact with stakeholder, customers and staffs Style Identify the are that not effectively aligned Determine the optimal organizational design Decide where and what changes should be made Make the necessary changes Continuously reviews the 7s Sources: Strategic Management Insight.com