It s also highly complex, taking place under severe time pressure and in parallel to running the core businessmaking it one of the most challenging initiatives a senior executive will ever undertake. Here is a 5 step process you can use to make use of the mckinsey 7s framework. Explore bcg s latest thought leadership on post merger integration to develop a winning strategy that unlocks synergies quickly, and returns value to investors. The seventhe seventhe seven s model s models model. Mergers create vast organizational anxiety about the future. The mckinsey 7s framework is a management model developed by business consultants robert h. The mckinsey 7ss model is one that can be applied to almost any organizational or team effectiveness issue. The company built a new leadership model that set expectations for all leaders based on the acquiring company s historical strengths for example, missioncentricity and entrepreneurship and new strengths it sought to build through the acquisition.
The mckinsey 7s framework helps you assess seven key elements of your. Where you want to be could mean simply executing your current strategy, or it could help you analyze the challenges of a proposed merger. Being clear on the deal s strategic logic is critical both for pre and post merger activities. You may also find our articles on the change curve, impact analysis and lewin s change management model useful.
The following rationales lie on a continuum, from deals that play by the rules of merger transactions and integration, to those that transform the rules. Effective strategy implementation using the above process can be a source of competitive advantage. Pengertian mckinsey 7s framework dan elemenelemennya. Mckinsey 7s framework template free powerpoint templates. As most merger integrations involve a significant amount of change, it is invaluable to give control back to people wherever possible. Analyzing organizational structure based on7s model of mckinsey by mohammad mehdi ravanfar. Analyzing organizational structure based on 7s model of mckinsey. You can click on the image to download it as a pdf worksheet. Moreover, premiums that acquirers agree to pay over the target s prebid share price.
Learn how to use this model effectively to analyze and improve your organization. Articulate and communicate the deal s vision by merger leaders design the new organization and operating plan customize the integration plan to address specific challenges. Model analisis mckinsey 7s ini diperkenalkan oleh tom peters dan. A watershed model that addresses the critical role of coordination, rather than. The 7s model was created by mckinsey to bring structure to analysing organisations. There s a fundamental reason why such collaboration is critical for building trust and alignment among leadership teams from both companies. A mckinsey 7s model based framework for erp readiness assessment t able 4. Pengertian mckinsey 7s framework dan elemenelemennya mckinsey 7s framework atau kerangka kerja 7s mckinsey adalah sebuah alat yang digunakan untuk menganalisis aspek internal organisasi sebuah perusahaan dengan menggunakan 7 elemen utama yaitu strategy, structure, systems, sharevalues, style, staff dan skills. The mckinsey 7s model can be explained using the resourcebased view theory of the firm and strategy kraaijenbrink, spencer and groen, 2010. Post merger integration framework by exmckinsey consultants. Mckinsey 7s change model mckinsey 7s model was developed by robert waterman and tom peters during early 1980s by the two consultants mckinsey consulting organization. Strategy, structure and systems are hard elements that are much easier to identify and. You can use the 7s model in a wide variety of situations where its useful to. Tom peters has also contributed to the model, and used it in its mega bestseller in search of excellence when nokia s sales results started to fall at the beginning of 2000, the 7s model was also used there.
Nicolas albizzatti is a consultant in mckinsey s atlanta office, scott christofferson is a consultant in the washington, dc. So in the hectic days and weeks after a deal is announced, cfos face a daunting list of responsibilities, such as managing the deal s financial aspects, justifying the strategy to investors, negotiating with regulatory authorities, and ensuring. Mckinsey merger management practice cost capital revenue. What people hate most about change is the potential loss of control. When introduced in the late 1970s, the 7s framework was a watershed in. The 7 ss are structure, strategy, systems, skills, style, staff. Mckinsey s 7s system is a model for breaking down associations and their viability. Mckinsey merger management practice combinational synergy transformational synergy total 0. The model not only considers these aspects of the organisation individually, the biggest insights come from analysing if they fit together to create an aligned. Perspectives on driving merger and acquisition value. The model has evolved in practice beyond the od world and is now a common model utilized by many firms such as mckinsey as a diagnostic tool. Six essentials for achieving postmerger synergies march 17, 2017 by daniel friedman, axel reinaud, patrick staudacher, chris barrett, and niamh dawson two months into its formal merger, company a s integration teams were bickering with corporate over costcutting targetstargets set several months earlier, several layers up. It takes a gander at the seven key components that make the libraries effective overseen by methodology. The mckinsey 7s framework is a management model developed by business consultants.
This was a strategic vision for groups, to include businesses, business units, and teams. These changes could include restructuring, new processes, an organizational merger, new systems, and change of leadership. The mckinsey 7s model is a framework for organizational effectiveness that postulates that there are seven internal factors of. It divides organisations up into 7 components strategy, structure, systems, skills, staff, shared values and management style. The mckinsey 7 s model refers to the seven key interrelated or integrated.
Making it work for organisational effectiveness november 27 28, 20 hotel armada, petaling jaya introduction the mckinsey 7s framework is a management model developed by wellknown business consultants robert h. Mckinsey is one of the leading consulting firms in the world. The role of leadership in merger integration mckinsey. Thus the team s work helps capture more of the merger s synergies before competitors have a chance to react. The model is a powerful tool for assessing and analyzing the changes in the internal situation of an organization. Can be a useful framework during the situation of merger and acquisition involving. A merger provides an exceptional moment for executives to reflect on the performance of a company s operating model the organization of structures, processes, and people in service of value creation. Leadership capability building is crucial during mergers. Secondly this was a strategic vision for groups, to include businesses, business units, and teams. The basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it wats to be successful. These changes go far beyond a new name and senior leadership. Developed in the early 1980s by tom peters and robert waterman. Substantial changes to an operating model are often necessary to achieve the strategic objectives and deliver the promised value of a merger.
Should comcast accept a partnership with netflix in which netflix will pay comcast for faster and more reliable access to comcast s subscribers. Analyzing organizational structure based on 7s model of. Whatever the type of change restructuring, new processes, organizational merger, new systems, change of leadership, and so on the model can be used to understand how the. Tailoring a program for three cohorts of integration leaders can make a big difference. Understanding the tool mckinsey 7s model was developed in 1980s by. How you lead your organization through an integration following a merger or acquisition can make or break the original deal.
Post merger integration pmi is critical to realizing the value of a deal. Mckinsey 7s model according to manktelow carlson 2015 the. All handouts and slides available for free download in the members download. Success requires executive alignment on the goals for performance and value capture, the approach to. Memang ada beberapa model dan analisa yang dapat digunakan untuk menentukan di posisi mana organisasi kita berada. Distribution of articles by journals, conference pr oceedings, textbooks, and dissertations. But, according to mckinsey research, only 16% of merger reorgs fully deliver their objectives in the planned time, 41% take longer than expected, and.
Case interview workshops the hopkins graduate student. Firstly the mckinsey 7sframework is a management model developed by wellknown business consultants robert h. Indeed, failure to do so can trigger the four other causes of failure. The mckinsey 7s model is a plan for company success that focuses on. It sought to present an emphasis on human resources soft s, rather than the traditional. It sells into one market, and uses offtheshelf it and accounting systems. Mckinsey 7s model is a tool that analyzes firm s organizational design by looking at 7 key internal elements.
Let s imagine that whitehawk electronics is a startup with five staff. Kerangka 7s dari mckinsey atau yang lebih dikenal dengan mckinsey 7s framework adalah sebuah model manajemen untuk melihat seberapa efektif organisasi dalam mencapai tujuan yang diinginkannya. The mckinsey 7s model is one of the most widelyused frameworks in business today. Company b s significantly higher tax rate also makes a difference company a gets free money after the acquisition since it s only paying 25% in taxes rather than 40%. Post merger integration pointofview april 2017 merger integration in a converging world. Complex mckinsey interviewer led profitability case in pharma. Post merger integration framework by ex mckinsey consultants 1.
The mckinsey 7s model is applicable in a wide variety of situations where its. An example of the mckinsey 7 s framework in action. Using the mckinsey 7s model you can use it to identify which elements you need to realign to improve performance, or to maintain alignment and performance during other changes. The mckinsey 7s model involves seven interdependent factors which are categorized as either hard or soft elements. The effort, which lasted five years, required a senior executive to manage all interactions full time, changes to the parent company s hr policies and systems to meet the target s needs, flexible financial reporting and budgeting that fit the target s operating model, and forgoing almost all cost synergies from redundant operations. University of hormozgan, iran abstract the aim of this descriptivesurvey research was to investigate and analyze the organizational structure of qeshm free zone based on 7 s of mckinsey. Should toyota accept a proposal by tesla to jointly develop a new suv model of electronic vehicle rav4 ev. Mergers and acquisition case interview demo video 11 of. Peters notes that douglas mcgregors theory of motivation, known as theory x and.
The 7s model was developed by the consultants of mckinsey in the late 70s. Mergers and acquisition case interview demo by victor cheng author, case interview secrets. Such diligence can help justify valuations, drive early alignment around the new operating model for the combined businesses, and build a blueprint for accelerating synergy capture during post merger integration. In any merger, acquisition, or joint venture, the sooner managers integrate their companies the faster they capture the expected synergies. Postmerger integration insights our latest thinking bcg. Mckinsey 7s model identifies seven elements that help organizations to achieve goals. A mckinsey 7s model based framework for erp readiness assessment article pdf available in international journal of enterprise information systems 74.
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