Mckinsey 7's Model Of An Organization

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at external factors. McKinsey 7-S model shows organizations system and its interconnected factors, its adaptability to change. McKinsey 7-S model was developed in the early 1980s by Tom Peters and Robert Waterman. They were consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful. The McKinsey 7-S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements: Some of the hard elements are: strategy statements, organization charts and reporting lines, and formal processes and IT systems. "Soft" elements are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. The Hard S’s : Strategy: Strategies are plans an organization adopts to reach the goals. It is the direction and scope of the company over the long term. Structure: Structure is the organizational chart and associated information that shows the reporting lines and task division. It describes the hierarchy of authority and accountability in an organization. It also shows how organization’s units relate to each other. Many organizations use a mix of structures – pyramidal, matrix or networked one. Systems: System defines the flow of activities involved in the daily operation of business, including its core processes and its

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