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Strategic alignment - Coggle Diagram
Strategic alignment
McKninsey 7 S framework
One management model that can be used to bridge the gap between strategy content and implementation - the model is premised on the idea that seven internal key elements must be aligned to implement a given strategy successfully
Can be used to assess the viability of a strategic plan, indicating where the key elements of the organisation are aligned or for assessing the impact of the proposed straegy
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Hard element: Strategy, structure and systems
Soft elements, shared values, skills, style and staff
Hard elements can be directly influenced by management and are easily identifiable such as strategy statements, organisation charts, reporting lines, formal processes and IT systems
Soft elements are less tangible and more influenced by culture but are as important as the hard elements to the success of the organisation
When evaluating strategy in the 7S framework it not only needs to be clearly articulated of relevant duration, help to achieve competitive advantage and be reinforced by a strong vision, mission and values but also has to be aligned with the other 6 elements in the framework in the framework in order to have any chance of success
Structure represents the way business divisions and units are organised and includes information of who is accountable to whom eg flatter organisational strcuctures are more aligned to innovative strategies whereas small spans of control support activities requiring higher degrees of supervision
Systems are the processes and procedures of the organisation which reveal an organisations daily activities, how decisions are made and how employees get the job done
Skills are the abilities that organisation's employees perform well along with organisational capabilities and competences
The staffing element considers the number and type of employees needed by an organisation to carry out the strategy and how they will be recruited, trained, motivated and rewarded
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At the centre of the 7S framework are the organisations shared values, these are the core values of the organisation as evidenced by the corporate culture and general work ethic that guide both employee behaviour and organisational actions
Business models
Organisations require mechanisms to ensure strategy cascades down the organisation and leads to action - the organisation must find ways to communicate the strategy and make it relevant to employees located further down the hierarchy
A business model is often used to simplify and communicate strategy and departmental goals or various performance metrics coupled with managed feedback loops to bring the strategy to life throughout the organisation
A business model is a framework for creating value - used for a broad range of informal and formal descriptions to represent core aspects of a business including purpose, offerings and strategies, infrastructure, organisational structures, trading practices and operational processes and policies
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May show the organisation how the organisation will meet customer needs, earn money and compete - can be used as a vehicle for delivering the organisation's purpose and mission
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To element a given strategy, elements of the organisation will often need to be adapted to enable it to achieve its strategic objectives successfully