What are the 7 element of strategy?
Seven element of strategy
The seven elements of strategy, often referred to as the "Seven S Framework," were initially proposed by McKinsey & Company, a renowned management consulting firm. These elements provide a comprehensive framework for analyzing and formulating strategies. Here are the seven elements:
Shared Values:
Shared values refer to the core beliefs and principles that guide an organization. They define the organization's culture and purpose, shaping its identity and providing a sense of direction.
Strategy: Strategy encompasses the overall plan of action designed to achieve specific goals and objectives. It involves making choices about how to allocate resources, define competitive positioning, and address challenges and opportunities in the external environment.
Structure:
Structure refers to the organizational design and framework that determines how various units, departments, and teams are organized and how they interact. It involves considering factors such as reporting relationships, decision-making processes, and coordination mechanisms.
Systems:
Systems represent the processes, procedures, and routines that are in place to support the organization's operations. This includes performance management systems, information systems, and other processes that enable the smooth functioning of the organization.
Skills:
Skills pertain to the distinctive capabilities and competencies that an organization possesses. These can include technical skills, knowledge, expertise, and other resources that give the organization a competitive advantage.
Staff:
Staff refers to the people within the organization and their roles, responsibilities, and skills. It involves aspects such as recruitment, development, motivation, and retention of employees who contribute to the organization's success.
Style:
Style represents the leadership style and organizational culture that permeates the organization. It includes the values, attitudes, and behaviors exhibited by leaders and employees, shaping the overall working environment and influencing decision-making processes.
These seven elements are interconnected and interdependent, and they need to be aligned to ensure effective strategy formulation and execution within an organization.
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