Question
The McKinsey 7S Framework is a management tool developed by McKinsey consultants in the 1980s. It includes seven interdependent factors: Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff. These elements need to be aligned for an organization to achieve its objectives. For a startup like Whitehawk Electronics, the framework can be applied to ensure that as the company grows, all aspects of the business are developing cohesively. For instance, as Whitehawk expands its market, the framework can help identify if the company's strategy aligns with its skills, or if the structure supports the new strategy. It can also highlight areas that need improvement, such as systems that may not be adequate for a larger scale operation.
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Imagine that Whitehawk Electronics is a startup that has five team members. Because Whitehawk Electronics is a developing business, it relies almost solely on the vision and values of the founder. Let's call her Alix. The start-up sells into one market and uses off-the-shelf IT and accounting systems. As the business grows, however, the staff expands to 30 members, and Whitehawk Electronics starts to explore and conquer different markets. New customer demands require new skills in various departments: from marketing to financial management. Alix decides to apply the McKinsey 7-S framework analysis and learns that her company's developing sales strategy doesn't align with its small-business skill set any more.
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