As most merger integrations involve a significant amount of change, it is invaluable to give control back to people wherever possible. You may also find our articles on the change curve, impact analysis and lewin s change management model useful. Six essentials for achieving postmerger synergies march 17, 2017 by daniel friedman, axel reinaud, patrick staudacher, chris barrett, and niamh dawson two months into its formal merger, company a s integration teams were bickering with corporate over costcutting targetstargets set several months earlier, several layers up. University of hormozgan, iran abstract the aim of this descriptivesurvey research was to investigate and analyze the organizational structure of qeshm free zone based on 7 s of mckinsey. It sought to present an emphasis on human resources soft s, rather than the traditional. Mckinsey is one of the leading consulting firms in the world. The model not only considers these aspects of the organisation individually, the biggest insights come from analysing if they fit together to create an aligned. Explore bcg s latest thought leadership on post merger integration to develop a winning strategy that unlocks synergies quickly, and returns value to investors.
When introduced in the late 1970s, the 7s framework was a watershed in. The seventhe seventhe seven s model s models model. Thus the team s work helps capture more of the merger s synergies before competitors have a chance to react. Mckinsey 7s model identifies seven elements that help organizations to achieve goals. The 7s model was developed by the consultants of mckinsey in the late 70s. The mckinsey 7s model can be explained using the resourcebased view theory of the firm and strategy kraaijenbrink, spencer and groen, 2010.
The model is a powerful tool for assessing and analyzing the changes in the internal situation of an organization. It divides organisations up into 7 components strategy, structure, systems, skills, staff, shared values and management style. Substantial changes to an operating model are often necessary to achieve the strategic objectives and deliver the promised value of a merger. Complex mckinsey interviewer led profitability case in pharma. Using the mckinsey 7s model you can use it to identify which elements you need to realign to improve performance, or to maintain alignment and performance during other changes. Moreover, premiums that acquirers agree to pay over the target s prebid share price. Secondly this was a strategic vision for groups, to include businesses, business units, and teams. The mckinsey 7ss model is one that can be applied to almost any organizational or team effectiveness issue. A merger provides an exceptional moment for executives to reflect on the performance of a company s operating model the organization of structures, processes, and people in service of value creation. Case interview workshops the hopkins graduate student. Analyzing organizational structure based on7s model of mckinsey by mohammad mehdi ravanfar. Leadership capability building is crucial during mergers. Tom peters has also contributed to the model, and used it in its mega bestseller in search of excellence when nokia s sales results started to fall at the beginning of 2000, the 7s model was also used there.
Mergers create vast organizational anxiety about the future. Such diligence can help justify valuations, drive early alignment around the new operating model for the combined businesses, and build a blueprint for accelerating synergy capture during post merger integration. Strategy, structure and systems are hard elements that are much easier to identify and. It sells into one market, and uses offtheshelf it and accounting systems.
Memang ada beberapa model dan analisa yang dapat digunakan untuk menentukan di posisi mana organisasi kita berada. Let s imagine that whitehawk electronics is a startup with five staff. Success requires executive alignment on the goals for performance and value capture, the approach to. Mergers and acquisition case interview demo video 11 of.
The 7s model was created by mckinsey to bring structure to analysing organisations. An example of the mckinsey 7 s framework in action. Tailoring a program for three cohorts of integration leaders can make a big difference. As a new venture, it is still based firmly on the vision and values of its founder, alix, and its elements all align. Should toyota accept a proposal by tesla to jointly develop a new suv model of electronic vehicle rav4 ev.
The mckinsey 7s model is applicable in a wide variety of situations where its. Should comcast accept a partnership with netflix in which netflix will pay comcast for faster and more reliable access to comcast s subscribers. Developed in the early 1980s by tom peters and robert waterman. Distribution of articles by journals, conference pr oceedings, textbooks, and dissertations. But, according to mckinsey research, only 16% of merger reorgs fully deliver their objectives in the planned time, 41% take longer than expected, and. Articulate and communicate the deal s vision by merger leaders design the new organization and operating plan customize the integration plan to address specific challenges. These changes could include restructuring, new processes, an organizational merger, new systems, and change of leadership. Being clear on the deal s strategic logic is critical both for pre and post merger activities. Analyzing organizational structure based on 7s model of mckinsey. This was a strategic vision for groups, to include businesses, business units, and teams. The mckinsey 7s model is a plan for company success that focuses on. How you lead your organization through an integration following a merger or acquisition can make or break the original deal. The mckinsey 7s model is one of the most widelyused frameworks in business today.
The mckinsey 7s model involves seven interdependent factors which are categorized as either hard or soft elements. Mckinsey 7s framework template free powerpoint templates. Mergers and acquisition case interview demo by victor cheng author, case interview secrets. The effort, which lasted five years, required a senior executive to manage all interactions full time, changes to the parent company s hr policies and systems to meet the target s needs, flexible financial reporting and budgeting that fit the target s operating model, and forgoing almost all cost synergies from redundant operations. Whatever the type of change restructuring, new processes, organizational merger, new systems, change of leadership, and so on the model can be used to understand how the. Here is a 5 step process you can use to make use of the mckinsey 7s framework. Mckinsey 7s model according to manktelow carlson 2015 the. A mckinsey 7s model based framework for erp readiness assessment t able 4. Post merger integration framework by exmckinsey consultants. Post merger integration pmi is critical to realizing the value of a deal. The company built a new leadership model that set expectations for all leaders based on the acquiring company s historical strengths for example, missioncentricity and entrepreneurship and new strengths it sought to build through the acquisition. Can be a useful framework during the situation of merger and acquisition involving. Indeed, failure to do so can trigger the four other causes of failure.
The mckinsey 7 s model refers to the seven key interrelated or integrated. Making it work for organisational effectiveness november 27 28, 20 hotel armada, petaling jaya introduction the mckinsey 7s framework is a management model developed by wellknown business consultants robert h. It takes a gander at the seven key components that make the libraries effective overseen by methodology. A mckinsey 7s model based framework for erp readiness assessment article pdf available in international journal of enterprise information systems 74.
Mckinsey 7s model is a tool that analyzes firm s organizational design by looking at 7 key internal elements. Nicolas albizzatti is a consultant in mckinsey s atlanta office, scott christofferson is a consultant in the washington, dc. The mckinsey 7s framework is a management model developed by business consultants robert h. Postmerger integration insights our latest thinking bcg.
Understanding the tool mckinsey 7s model was developed in 1980s by. Learn how to use this model effectively to analyze and improve your organization. What people hate most about change is the potential loss of control. Peters notes that douglas mcgregors theory of motivation, known as theory x and. These changes go far beyond a new name and senior leadership. So in the hectic days and weeks after a deal is announced, cfos face a daunting list of responsibilities, such as managing the deal s financial aspects, justifying the strategy to investors, negotiating with regulatory authorities, and ensuring. Effective strategy implementation using the above process can be a source of competitive advantage. Model analisis mckinsey 7s ini diperkenalkan oleh tom peters dan. Pengertian mckinsey 7s framework dan elemenelemennya. It s also highly complex, taking place under severe time pressure and in parallel to running the core businessmaking it one of the most challenging initiatives a senior executive will ever undertake. You can click on the image to download it as a pdf worksheet. Mckinsey merger management practice combinational synergy transformational synergy total 0. The basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it wats to be successful.
All handouts and slides available for free download in the members download. The mckinsey 7s framework helps you assess seven key elements of your. There s a fundamental reason why such collaboration is critical for building trust and alignment among leadership teams from both companies. In any merger, acquisition, or joint venture, the sooner managers integrate their companies the faster they capture the expected synergies. The mckinsey 7s model is a framework for organizational effectiveness that postulates that there are seven internal factors of. Analyzing organizational structure based on 7s model of.
Post merger integration pointofview april 2017 merger integration in a converging world. The following rationales lie on a continuum, from deals that play by the rules of merger transactions and integration, to those that transform the rules. You can use the 7s model in a wide variety of situations where its useful to. Firstly the mckinsey 7sframework is a management model developed by wellknown business consultants robert h. The model has evolved in practice beyond the od world and is now a common model utilized by many firms such as mckinsey as a diagnostic tool. Where you want to be could mean simply executing your current strategy, or it could help you analyze the challenges of a proposed merger. Company b s significantly higher tax rate also makes a difference company a gets free money after the acquisition since it s only paying 25% in taxes rather than 40%. Mckinsey 7s change model mckinsey 7s model was developed by robert waterman and tom peters during early 1980s by the two consultants mckinsey consulting organization. Mckinsey s 7s system is a model for breaking down associations and their viability.
The role of leadership in merger integration mckinsey. A watershed model that addresses the critical role of coordination, rather than. Pengertian mckinsey 7s framework dan elemenelemennya mckinsey 7s framework atau kerangka kerja 7s mckinsey adalah sebuah alat yang digunakan untuk menganalisis aspek internal organisasi sebuah perusahaan dengan menggunakan 7 elemen utama yaitu strategy, structure, systems, sharevalues, style, staff dan skills. The 7 ss are structure, strategy, systems, skills, style, staff. Mckinsey merger management practice cost capital revenue. Kerangka 7s dari mckinsey atau yang lebih dikenal dengan mckinsey 7s framework adalah sebuah model manajemen untuk melihat seberapa efektif organisasi dalam mencapai tujuan yang diinginkannya. Post merger integration framework by ex mckinsey consultants 1.
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