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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.

The 7's of McKinsey Framework are listed below:

1. 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.

2. Strategy

Plans for the allocation of a firms scarce resources, over time, to reach

identified goals. Environment, competition, customers.

3. 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.

4. 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.

5.Staff

Numbers and types of personnel within the organization.

6. Style

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Cultural style of the organization and how key managers behave in achieving

the organizations goals. Management Styles.

7. Skill

Distinctive capabilities of personnel or of the organization as a whole. Core

Competences.

Element of 7S model

Application to digital marketing team

Key issues from practice and literature

Strategy

The significance of digital marketing in influencing and supporting

organisations' strategy

Gaining appropriate budgets and demonstrating / delivering value and ROI

from budgets. Annual planning approach.

Techniques for using digital marketing to impact organisation strategy

Techniques for aligning digital strategy with organisational and marketingstrategy

Structure The modification of organizational structure to support digital

marketing.

Integration of team with other management, marketing (corporate

communications, brand marketing, direct marketing) and IT staff

Use of cross-functional teams and steering groups

Insourcing vs. outsourcing

Systems The development of specific processes, procedures or

information systems to support digital marketing

Campaign planning approach-integration

Managing/sharing customer information

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Managing content quality

Unified reporting of digital marketing effectiveness

In-house vs. external best-of-breed vs. external integrated technology

solutions

Staff The breakdown of staff in terms of their background and

characteristics such as IT vs. Marketing, use of contractors/consultants, age

and sex.

Insourcing vs. outsourcing

Achieving senior management buy-in/involvement with digital marketing

Staff recruitment and retention. Virtual working

Staff development and training

Style Includes both the way in which key managers behave in achieving the

organizations' goals and the cultural style of the organization as a whole.

Relates to role of digital marketing team in influencing strategy

it is it dynamic and influential or conservative and looking for a voice

Skills Distinctive capabilities of key staff, but can be interpreted as specific

skill-sets of team members. Staff skills in specific areas: supplier

selection, project management, Content management, specific e-marketing

approaches (SEO,PPC, affiliate marketing, e-mail marketing, onlineadvertising)

Superordinate goals The guiding concepts of the digital marketing

organisation which are also part of shared values and culture. The internal

and external perception of these goals may vary Improving the perception

of the importance and effectiveness of the digital marketing team amongst

senior managers and staff it works with (marketing generalists and IT)

What is 7-S Model?

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The Seven-Ss (7-S Model) is a framework for analyzing organizations and

their effectiveness. It looks at the seven key elements that make the

organizations successful, or not: strategy; structure; systems; style; skills;

staff; and shared values.

Consultants at McKinsey & Company developed the 7S model in the late

1970s to help managers address the difficulties of organizational change. The

model shows that organizational immune systems and the many

interconnected variables involved make change complex, and that an

effective change effort must address many of these issues simultaneously.

7-S Model: A Systemic Approach to Improving Organizations

The 7-S model is a tool for managerial analysis and action that provides astructure with which to consider a company as a whole, so that the

organization's problems may be diagnosed and a strategy may be developed

and implemented.

The 7-S diagram illustrates the multiplicity interconnectedness of elements

that define an organization's ability to change. The theory helped to change

manager's thinking about how companies could be improved. It says that it is

not just a matter of devising a new strategy and following it through. Nor is it

a matter of setting up new systems and letting them generate improvements.

There is no starting point or implied hierarchy different factors may drive

the business in any one organization.

Shared Values

Shared values are commonly held beliefs, mindsets, and assumptions that

shape how an organization behaves its corporate culture. Shared valuesare what engender trust. They are an interconnecting center of the 7Ss

model. Values are the identity by which a company is known throughout its

business areas, what the organization stands for and what it believes in, it

central beliefs and attitudes. These values must be explicitly stated as both

corporate objectives and individual values.

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Structure

Structure is the organizational chart and associated information that shows

who reports to whom and how tasks are both divided up and integrated. In

other words, structures describe the hierarchy of authority and accountability

in an organization, 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. These relationships are

frequently diagrammed in organizational charts. Most organizations use some

mix of structures pyramidal, matrix or networked ones to accomplish their

goals.

Strategy

Strategy are plans an organization formulates to reach identified goals, and a

set of decisions and actions aimed at gaining a sustainable advantage over

the competition.

Systems

Systems define the flow of activities involved in the daily operation of

business, including its core processes and its support systems. They refer to

the procedures, processes and routines that are used to manage the

organization and characterize how important work is to be done. Systems

include:

- Business System

- Business Process Management System (BPMS)

- Management information system

- Innovation system

- Performance management system

- Financial system/capital allocation system

- Compensation system/reward system

- Customer satisfaction monitoring system

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Style

"Style" refers to the cultural style of the organization, how key managers

behave in achieving the organization's goals, how managers collectively

spend their time and attention, and how they use symbolic behavior. How

management acts is more important that what management says.

Staff

"Staff" refers to the number and types of personnel within the organization

and how companies develop employees and shape basic values.

Skills

"Skills" refer to the dominant distinctive capabilities and competencies of the

personnel or of the organization as a whole.

References