Transcript Boston Communications Consulting 7S Framework

Boston Communications Consulting
7S Framework
Crystal Diane Byrd
Spring 2003
Agenda
Case for Market Entry
Factual Overview and reasons for selecting
the 7S framework
Essence of the Framework
Application of 7S Framework to the
company’s problem
Recommendations
Lessons Learned
Case for Market Entry
Case 4.2 Boston Communications Consulting Co. has
grown from 3 consultants to 100 in 2 years. It is now
preparing to expand overseas and work with global
clients. How would you help the firm develop a strategy
and what would you recommend?
Mckinsey 7-S Framework – strategy, structure,
systems, style, staff, skills and shared values
Factual Overview
Functions/Uses of 7-S-Model
Used for internal analysis of a company
Analyze strategic characteristics of a company
Tool for determining the “doability” of strategies
Used to create alignment among various departments of
an organization
Examines effect of change on a company
Analyze the “successful and dysfunctional” aspects of an
organization
Factual Overview con’t
Weakness
Focuses on internal fit of an organization
Ignores effect of factors external to the
organization
Why 7-S Model
Profitable, “purposeful, efficient organizational action”
cannot be successfully executed if internal elements are
not aligned
Essence of the Framework
“Hard S” - rational and factual aspects: focuses on
Strategy, Systems, and Structure
Strategy – a plan of action to maintain competitive
advantage over the competition
Systems – measures and actions which accommodate
the execution of daily activities
Structure – the way the organization is structured, who
reports to whom
Essence of the Framework
“Soft S” - social and interpersonal behavior: focuses on
Style, Shared Values, Staff, and Skills
Style – leadership style
Shared Values – company culture, work ethics etc
Staff – company employees and their capabilities
Skills – core competencies of the company as well as
that of its staff
Application of the Framework - Strategy
Global strategy
Standardization of products, processes
and operation around the world
HQ
Multidomestic strategy
Adjust products and operations according
to each country or market served
HQ
Source: Strategic Management. Pitt and Lei, 2003
Application of the Framework - Systems
C o u n try 1
T h e s e 3 s e rv e rs re p re se n t th e U S
w e b s ite , E R P , a n d d a ta b a se s e rv e r
C o u n try 2
* B e c a use a ll lo c a tio n s u se the sa m e
In te r n a tio n a l
D a ta W a re h o u s e
D a ta b a se d e s ig n a nd ha ve the sa m e b a s ic
o p e ra tio n s th is m o d e l b e c o m e s h ig h ly
m o d u la r a nd e a s y to im p le m e nt m u ltip le
tim e s.
C o u n try 3
W e b S e rv e r
D a ta b a s e S e rv e r
A p p lic a tio n S e rv e r
•In e a c h c o u n try, a c o p y o f th e E R P
is in s ta lle d w ith m o d ific a tio n s to
a c c o m m o d a te la n g u a g e
•A v e rs io n o f th e w e b s ite in e a c h
C o u n try is c re a te d a n d h o s te d
•T h e lo c a l E R P a n d w e b s ite u s e
th e lo c a l d a ta b a se s e rv e r
•T h e lo c a l d a ta b a se is
s yn c h ro n iz e d w ith th e c e n tra l
d a ta b a s e s e rv e r in B o s to n s e v e ra l
tim e s d a ily .
Application of the Framework – Structure
Geographic Division Structure
Hierarchical -Two way open communication
Self contained product/function to meet local
needs
Promotes a high level of decentralization
Corporate - US
Region 1-London
Region 2- Germany
Product/Function
Product/Function
Application of the Framework –Style
The competitive executive
Flexible and adaptive to Stakeholders needs
Seizes and exploits opportunities
Focuses on increasing the company’s share of
market at a profit
Application of the Framework – Shared
Values
Maintenance of the firm’s corporate culture
globally
Strong work ethics among new employees
Healthy balance of competitiveness and
cooperation amongst applicants
Application of the Framework - Staff
Recruitment of new consultants in their
respective countries
Attract experienced employees at other firms
Offer incentives which should be determined
by the culture of the country
Provide additional training
Application of the Framework - Skills
Skills for an International Market
Communication, Administrative, Finance and
Accounting, Customer Service, Marketing, Product
Development, IT
High Level of linguistic capabilities
Examine foreign recruitment opportunities
Seek the best job techniques for individual countries
Exposure of US based consultants to the global
marketplace
Recommendations
Consider application of a framework which includes
external considerations – SWOT
Open offices in UK and Germany since competition is not
very strong here
Avoid France since Cap Gemini is already an established
presence and would be a formidable competitor
Form an alliance or partnership with an already
established smaller firm in the consulting industry
Do extensive market analysis to determine market
profitability, the competition, the governmental or legal
restrictions, and requirements in these countries
Lesson Learned
It is best to apply two frameworks to a case before
making a decision
7s framework pertains to the internal alignment of a
firm helping them to work towards shared goals and
values
There are considerable challenges to global expansion –
capital, labor, government regulations, tax
Companies need a strong, competitive global strategic
plan
You must take into consideration cultural, language and
customer differences