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The McKinsey 7S framework and SWOT analysis are both strategic planning tools, but they focus on different aspects of a business and serve different purposes. The 7S framework, developed by McKinsey, looks at seven internal aspects of an organization that need to be aligned: Strategy, Structure, Systems, Shared values, Style, Staff, and Skills. It's used to ensure that all parts of the organization are working together effectively towards a common goal. On the other hand, SWOT analysis is a tool that helps businesses identify their Strengths, Weaknesses, Opportunities, and Threats. It's used to understand the internal and external factors that could impact the company's success.
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Strategy – this is your organization's plan for building and maintaining a competitive advantage over its competitors. Structure – this how your company is organized (that is, how departments and teams are structured, including who reports to whom). Systems – the daily activities and procedures that staff use to get the job done. Shared values – these are the core values of the organization, as shown in its corporate culture and general work ethic. They were called "superordinate goals" when the model was first developed. Style – the style of leadership adopted. Staff – the employees and their general capabilities. Skills – the actual skills and competencies of the organization's employees.
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To understand your organization's position and the elements that influence its capability to carry through changes, use our McKinsey 7S presentation....