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1、,Structure,Staff,Systems,Style,Skills,Shared Values,Strategy,Supporting organization,Centralized,The winning formula,7-S FRAME WORK,Single noble purpose,Strategy,Skills,Shared Values,Structure,Staff,Style,Systems,7-S FRAME WORK :,The winning formula sets the goals and standards for the organizations
2、 and identifies the key skills required The supporting organization provides quidance, motivation and monitoring to see that the right decisions are made,Single noble purpose,The winning formula,Supporting organization,Strategy,Skills,Shared Values,Structure,Staff,Style,Systems,7-S FRAME WORK : STRA
3、TEGY,An integrated set of actions to deliver a Superior value to a chosen set of Customers with a cost structure that Allows continuing excellent returns,Which customers does the company target?,Which products/services does it offer?,How can it serve its customers effective? How can the company buil
4、d a sustainable advantage over competition?,What are the strategic priorities for the company? What are the actions required across different functional elements.,Strategy,Skills,Shared Values,Structure,Staff,Style,Systems,7-S FRAME WORK : SHARED VALUES,How do people in the organization describe the
5、 way we do things around here? E.g., - How decisions are taken - How important stake holders are dealt with - How thing get down - What preoccupies senior management,Those ideas of what is right and desirable (in Corporate and/or individual behavior) which Are typical of the organization and common
6、To most of its members,How do people in the organization describe the way in which it is distinctive?,Which things get most and least management attention? E.g., - Markets, product lines - Organizational units - Short versus long term issues,Strategy,Shared Values,Structure,Staff,Style,Systems,7-S F
7、RAME WORK : SKILLS,Capabilities possessed by the organization As a whole as distinct from those of individuals,Skills,what business activities important to its success is the company distinctively good at performing?,What business activities important to its success is the company weak at performing
8、?,.,How are important business activities changing?,What important management activities must the company perform much better than it does now? - Non-business system function e.g., people development, industrial relations, etc. - Special management challenges e.g., multi-product line management, res
9、ource deployment,Strategy,Skills,Shared Values,7S FRAME WORK : THE WINNING DORMULA,Vision,Activities the organization Must be really good at in order To deliver winning value proposition,An integrated set of actions To deliver a superior Value (benefits minus Price) to a chosen set Of customers, wit
10、h a Cost structure that Allows continuing Excellent returns,The overriding goal of the organization A clear, compelling statement of what It aspires to become that is demanding but Achievable and reflects a fact-based view Of the future,The commonly held beliefs of the Organization simple terms that
11、 say Whats important around here,Strategy,Skills,Shared Values,Structure,Staff,Style,Systems,7-S FRAME WORK : SYSTEMS,The Process and procedures through which things get done from day to day,What are the most important management processes that top management uses to run an organization. .E.g., - An
12、nual strategy reviews - Monthly operating reviews - Management by walking around What are the most important systems in the organization? How well are they managed? What variables are monitored and controlled most closely? How relevant, accurate, and reliable is the information generated?,Strategy,S
13、kills,Shared Values,Structure,Staff,Style,System,7-S FRAME WORK : STYLE,The way managers collectively behave with Respect to use of time, attention and symbolic actions,How does top management make decisions? Consultation versus solitary Reliance on data versus experience,How does management seek to
14、 motivate employees? - Orders - Compensation and fringe benefits - Internal competition - Participation,How does top management view its own principal role? Monitoring, reviewing Making tough decisions directly Staying on top of internal operations Changing course, setting direction,Strategy,Skills,
15、Shared Values,Structure,Staff,Style,System,7-S FRAME WORK : STRUCTURE,An orderly and predictable system to determine Who reports to whom and how tasks are Divided up and integrated,What is the basis structural form of the organization? E.g., Centralized versus decentralized Product versus customer g
16、roup Geographical coverage . What is the top management Structure? . What is the approach to (corporate) staff? E.g., . Large versus small . How are the key functions organized? E.g., R&D : Project based versus on- going Marketing: Centralized versus per business unit Sales: by customer group or geo
17、graphic,Systems,SKILL SUPPORT AT McDONALDS USING ORGANIZATION DESIGN,Structure,Skills Quality control,Staff,Style,Centralized buying to control content,The structure, staff, Systems and style of The organization has To be carefully Designed to support Each Macroskill Necessary for success,Hard-nosed
18、, rigid attitude on how to run the business,Inspections Franchise expansion based on high grades on prior inspections Many procedures mechanisms, aimed building employee enthusiasm, loyalty Procedures for consistent food preparation including a 600 page manual,Owner operators $40 million Hamburger University Promotion from within to build experience,Strategy,Skills,Shared Values,Structure,Staff,Style,System,7-S FRAME WORK : STAFF,The people in the organization, considered in Terms of corporate demographics, not individual personaliti
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