Every time I work with business owners and organizations, either as a coach or consultant, the strategic management process is one aspect I pay more attention to because that is the soul of the business.
Here is one effective management tool I always implement during my engagement with them: the MCKINSEY 7S MODEL, which is a business intelligence tool. The goal of the model is to show how the interactions of seven (7) main elements can improve an organization’s Performance. As a business owner myself, I have tested this model over the years in my business, and I can assure you that it works every time.
As a powerful strategic planning tool, the McKinsey 7S framework describes seven important internal aspects that impact your business performance to determine if they are properly aligned and allow the business to achieve its goals that you set as the owner.
The model divides these 7 elements into two categories;
Hard elements: are easily identified and influenced by management
Soft elements: are more intangible, and influenced by corporate culture
The “Hard Ss” elements include things like structure, strategy, and systems, while the “Soft Ss” elements are anything else.
1.STRUCTURE:
Illustrates the framework of your business’s segments and units, as well as who is responsible for what and how things are being done in line with your vision and mission. The relationships of responsibility and accountability make up your business hierarchy.
2. STRATEGIC MANAGEMENT:
This clearly defines your business’s aims and objectives, which enable you to draw up a plan for achieving these goals and objectives through your limited available resources in order to achieve sustained competitive advantage and successfully compete in your niche market.
3. SYSTEM:
You must be clear about your processes and procedures in your daily business operations, which show the daily functions of the business and the manner in which choices are made, including the business and technical infrastructure, which establishes workflows and the chain of decision-making to enable the business to be productive, profitable, and proactive in a dynamic business eco System.
4. SKILLS:
As a business owner, you must understand that in business it’s more of the quality of your input that determines your output and your skills are vital, which is the ability for your employees to excel in their daily tasks. Capabilities and competencies are also included in this category. When a business’s capabilities and competencies are formed, the employees are able to meet the corporate goal.
5. SHARED VALUES:
Your business mission, objectives, and values are the standards, principles, beliefs, and norms set by you & your management as guidelines for the team. They form the foundation for your business and play an important role in aligning all key elements to maintain an effective business design for sustainable success.
6. STAFF:
This component is concerned with the type and number of employees you have in your business and what is required to get the best hands, as well as how they will be recruited, trained, motivated, and rewarded, with a clear goal in mind to ensure that you meet its set objectives in their niche market.
7. STYLE:
This has to do with the attitude of your senior employees, which establishes a code of behaviour through their ways of interacting with one another and making symbolic decisions, which shapes the management style of the company’s executives. In some businesses, top-down management is the pattern, but other businesses are more team-oriented in their management style. You can choose yours depending on what you want as a business owner..
at Business Structure, Leadership & Management Academy-BUSLMA Staff Management training is one of the services we offer.
Published by Coach Abraham Orukpe.
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