This McKinsey seven S Framework Starbucks Example demonstrates how seven elements of a business can be aligned to increase effectiveness. Strategy, structure, and systems are hard elements in this model. At the same time, shared values, skills, style, and personnel are all soft factors. The presence of strong links between elements is emphasized in the McKinsey seven S model. For example, a change in one element causes changes in other elements. As shown in the McKinsey seven S Framework Starbucks Example below, shared values are at the heart of the Starbucks McKinsey seven S model because shared values guide employee behavior, which impacts performance.
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Sharedvalues
Strategy
Structure
Staff
Systems
Skills
Styles
Starbucks has to be comcentrating on|the quality of its products at the sametime offering excellent level ofcustomer services. The main strategyfor the company is to increaserevenues through effectivelypositioning Strbucks stores as thirdPlance environment.
Necessary training and developmentprograms need to be orgranized in asystematic manner and thus it has tobe ensured that all members of thewoekforce are equipped with skillsnecessary to achieve a high level of theworkforce are achieve a high level ofcustomer satisfaction.
Only capable and promisingcandidates need to be employed byStarbucks and employees have to beprovided growth potential.
Management style within storesshould be changed from LaissezFaireto inspirational management. In thisway a greater number of the workforcecan be effectively motivated for higherperformances with less financialresources.
Rather than daily roles amongcustomer assistant being appointed byshift supervisors, the rotation systemof duties needs to be introduced thatwill reduce the potential of conflictsamong the workforce, and the workprocess would be more interesting.
Flat management structure needs to be achieved through de-layering.Specifically, the positions of assistaint managers need to be eliminatedwithin the stores, after which there will be only three levels ofmanagement - Store manger, Shift manger and customer assistants,thus considerable amount of costs can be saved and organizationalefficiency can be increased.
Mckinsey 7S Framework Starbucks Example
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705
Shared
values
Strategy
Structure
Staff
Systems
Skills
Styles
Starbucks has to be comcentrating on|
the quality of its products at the same
time offering excellent level of
customer services. The main strategy
for the company is to increase
revenues through effectively
positioning Strbucks stores as third
Plance environment.
Necessary training and development
programs need to be orgranized in a
systematic manner and thus it has to
be ensured that all members of the
woekforce are equipped with skills
necessary to achieve a high level of the
workforce are achieve a high level of
customer satisfaction.
Only capable and promising
candidates need to be employed by
Starbucks and employees have to be
provided growth potential.
Management style within stores
should be changed from LaissezFaire
to inspirational management. In this
way a greater number of the workforce
can be effectively motivated for higher
performances with less financial
resources.
Rather than daily roles among
customer assistant being appointed by
shift supervisors, the rotation system
of duties needs to be introduced that
will reduce the potential of conflicts
among the workforce, and the work
process would be more interesting.
Flat management structure needs to be achieved through de-layering.
Specifically, the positions of assistaint managers need to be eliminated
within the stores, after which there will be only three levels of
management - Store manger, Shift manger and customer assistants,
thus considerable amount of costs can be saved and organizational
efficiency can be increased.
Sharedvalues
Strategy
Structure
Staff
Systems
Skills
Styles
Starbucks has to be comcentrating on|the quality of its products at the sametime offering excellent level ofcustomer services. The main strategyfor the company is to increaserevenues through effectivelypositioning Strbucks stores as thirdPlance environment.
Necessary training and developmentprograms need to be orgranized in asystematic manner and thus it has tobe ensured that all members of thewoekforce are equipped with skillsnecessary to achieve a high level of theworkforce are achieve a high level ofcustomer satisfaction.
Only capable and promisingcandidates need to be employed byStarbucks and employees have to beprovided growth potential.
Management style within storesshould be changed from LaissezFaireto inspirational management. In thisway a greater number of the workforcecan be effectively motivated for higherperformances with less financialresources.
Rather than daily roles amongcustomer assistant being appointed byshift supervisors, the rotation systemof duties needs to be introduced thatwill reduce the potential of conflictsamong the workforce, and the workprocess would be more interesting.
Flat management structure needs to be achieved through de-layering.Specifically, the positions of assistaint managers need to be eliminatedwithin the stores, after which there will be only three levels ofmanagement - Store manger, Shift manger and customer assistants,thus considerable amount of costs can be saved and organizationalefficiency can be increased.
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