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Monday, October 5, 2009

 7 S Framework And What Does It Mean

Most manufacturing companies/organizations use six sigma which is primarily focused on improving quality in areas such as manufacturing, sales, and customer service; in other words, on doing things right. It's not a strategic methodology, so it's not equipped to guide managers to examine their overall business model or strategy.

But on the other hand, there is the Seven S guides to improve the strategic approach to the business. The 7-S framework of McKinsey is a management model that describes 7 (seven) factors to organize a company in an holistic and effective way. Then, what are 7 (Seven Ss)?

7 (Seven) S Framework
Figure: 7 Ss FrameWork Guide

#1. Strategy: The overriding goal or objective that the enterprise wishes to achieve, and the course of action it intends to take to reach that goal in its environment, competition, customers etc.

#2. Structure: It's the way in which the organization's unites relate to each departments: such as centralized, functional divisions (top-down); decentralized; a matrix, network. It's all about How do internal processes and human resources work together to achieve the goals?

#3. Systems: It's not just information systems and infrastructure, but also the processes and the functions that enable the organization to work, such as recruiting, accounting, and procurement.

From e-commerce to data warehousing and knowledge management, and all across the array of processes and systems that companies employ to deliver their products and services, the ability to make the right technology decisions, to optimize processes, and to enhance productivity are make-or-break elements of success.

#4. Staff: The human resources that actually accomplish the work, and the recruiting, incentives, and compensation practices that encourage them to achieve. An organization's ability to attract and retain the best talents and to keep them motivated and productive is key to execution of the enterprises goals. All the strategic innovation in the world cannot compensate for an unmotivated staff or low productivity.

#5. Style: It means the Culture Style of one Organization; which is the enterprise customer focused and quality driven or focused on maximizing profitability at any cost? Does the enterprise strive to build a cohesive team of its staff, or does the organization view its workforce as a series of interchangeable hands-for-hire?

#6. Skills: This element also addresses organizational skills: the unique competencies that drive competitive advantage. From the "hard" technical skills of designing products and managing projects to the "soft" skills of communication and teamwork, staff capabilities are essential elements of strategic success.


#7. Shared Values: Means what does the organization stand for and what it believes in. The core beliefs and attitudes that drive the enterprise. Values are not the mission of the company--that should be captured in the firm's strategy. Values are about behaviors, taking the form of statements like "we'll never sacrifice customer satisfaction for short term profit" or "we always thank the customer for choosing us". And you can also read how to apply in order to know how it works.

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