StructureStaffSystemsStyleSkillsSharedValuesStrategySupportingorganizationCentralizedThewinningformula7-SFRAMEWORKSinglenoblepurposeStrategySkillsSharedValuesStructureStaffStyleSystems7-SFRAMEWORK:•Thewinningformulasetsthegoalsandstandardsfortheorganizationsandidentifiesthekeyskillsrequired•Thesupportingorganizationprovidesquidance,motivationandmonitoringtoseethattherightdecisionsaremadeSinglenoblepurposeThewinningformulaSupportingorganizationStrategySkillsSharedValuesStructureStaffStyleSystems7-SFRAMEWORK:STRATEGYAnintegratedsetofactionstodeliveraSuperiorvaluetoachosensetofCustomerswithacoststructurethatAllowscontinuingexcellentreturns•Whichcustomersdoesthecompanytarget?•Whichproducts/servicesdoesitoffer?•Howcanitserveitscustomerseffective?•Howcanthecompanybuildasustainableadvantageovercompetition?•Whatarethestrategicprioritiesforthecompany?•Whataretheactionsrequiredacrossdifferentfunctionalelements.StrategySkillsSharedValuesStructureStaffStyleSystems7-SFRAMEWORK:SHAREDVALUES•Howdopeopleintheorganizationdescribethewaywedothingsaroundhere?E.g.,-Howdecisionsaretaken-Howimportantstakeholdersaredealtwith-Howthinggetdown-WhatpreoccupiesseniormanagementThoseideasofwhatisrightanddesirable(inCorporateand/orindividualbehavior)whichAretypicaloftheorganizationandcommonTomostofitsmembers•Howdopeopleintheorganizationdescribethewayinwhichitisdistinctive?•Whichthingsgetmostandleastmanagementattention?E.g.,-Markets,productlines-Organizationalunits-ShortversuslongtermissuesStrategySharedValuesStructureStaffStyleSystems7-SFRAMEWORK:SKILLSCapabilitiespossessedbytheorganizationAsawholeasdistinctfromthoseofindividualsSkills•whatbusinessactivitiesimportanttoitssuccessisthecompanydistinctivelygoodatperforming?•Whatbusinessactivities–importanttoitssuccess–isthecompanyweakatperforming?.•Howareimportantbusinessactivitieschanging?•Whatimportantmanagementactivitiesmustthecompanyperformmuchbetterthanitdoesnow?-Non-businesssystemfunction–e.g.,peopledevelopment,industrialrelations,etc.-Specialmanagementchallenges–e.g.,multi-productlinemanagement,resourcedeploymentStrategySkillsSharedValues7SFRAMEWORK:THEWINNINGDORMULAVisionActivitiestheorganizationMustbereallygoodatinorderTodeliverwinningvaluepropositionAnintegratedsetofactionsTodeliverasuperiorValue(benefitsminusPrice)toachosensetOfcustomers,withaCoststructurethatAllowscontinuingExcellentreturnsTheoverridinggoaloftheorganizationAclear,compellingstatementofwhatItaspirestobecomethatisdemandingbutAchievableandreflectsafact-basedviewOfthefutureThecommonlyheldbeliefsoftheOrganization–simpletermsthatsayWhat’simportantaroundhereStrategySkillsSharedValuesStructureStaffStyleSystems7-SFRAMEWORK:SYSTEMSTheProcessandproceduresthroughwhichthingsgetdonefromdaytoday•Whatarethemostimportantmanagementprocessesthattopmanagementusestorunanorganization..E.g.,-Annualstrategyreviews-Monthlyoperatingreviews-Managementbywalkingaround•Whatarethemostimportantsystemsintheorganization?Howwellaretheymanaged?•Whatvariablesaremonitoredandcontrolledmostclosely?•Howrelevant,accurate,andreliableistheinformationgenerated?StrategySkillsSharedValuesStructureStaffStyleSystem7-SFRAMEWORK:STYLEThewaymanagerscollectivelybehavewithRespecttouseoftime,attentionandsymbolicactions•Howdoestopmanagementmakedecisions?-Consultationversussolitary-Relianceondataversusexperience•Howdoesmanagementseektomotivateemployees?-Orders-Compensationandfringebenefits-Internalcompetition-Participation•Howdoestopmanagementviewitsownprincipalrole?-Monitoring,reviewing-Makingtoughdecisionsdirectly-Stayingontopofinternaloperations-Changingcourse,settingdirectionStrategySkillsSharedValuesStructureStaffStyleSystem7-SFRAMEWORK:STRUCTUREAnorderlyandpredictablesystemtodetermineWhoreportstowhomandhowtasksareDividedupandintegrated•Whatisthebasisstructuralformoftheorganization?E.g.,-Centralizedversusdecentralized-Productversuscustomergroup-Geographicalcoverage.WhatisthetopmanagementStructure?.Whatistheapproachto(corporate)staff?E.g.,.Largeversussmall.Howarethekeyfunctionsorganized?E.g.,-R&D:Projectbasedversuson-going-Marketing:Centralizedversusperbusinessunit-Sales:bycustomergrouporgeographicSystemsSKILLSUPPORTATMcDONALD’SUSINGORGANIZATIONDESIGNStructureSkillsQualitycontrolStaffStyle•CentralizedbuyingtocontrolcontentThestructure,staff,SystemsandstyleofTheorganizationhasTobecarefullyDesignedtosupportEachMacroskillNecessaryforsuccess•Hard-nosed,rigidattitudeonhowtorunthebusiness•Inspections•Franchiseexpansionbasedonhighgradesonpriorinspections•Manyprocedures’mechanisms,aimedbuildingemployeeenthusiasm,loyalty•Proceduresforconsistentfoodpreparationincludinga600pagemanual•Owneroperators•$40millionHamburgerUniversity•PromotionfromwithintobuildexperienceStrategySkillsSharedValuesStructureStaffStyleSystem7-SFRAMEWORK:STAFFThepeopleintheorganization,consideredinTermsofcorporatedemographics,notindividualpersonalities•WhatKindofpeopledoesthecompanyemploy?-Educationalbackground-Averageage-Experienceprofile•Howfastisthecompanygrowingintermsofnumberofemployees?•Howwelldoesth