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Did You Know?
The 7S McKinsey model
Most of us grew up learning about 'the 4Ps' of
the marketing mix: product, price, place, promotion.
And this model still works when the focus is on
product marketing. However most developed economies
have moved on, with an ever-increasing focus on
service businesses, and therefore service marketing.
To better represent the challenges of service marketing,
McKinsey developed a new framework for analyzing
and improving organizational effectiveness, the
7S model:
The 3Ss across the top of the model are described
as 'Hard Ss':
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Strategy:
The direction and scope of the company
over the long term. |
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Structure:
The basic organization of the company,
its departments, reporting lines, areas
of expertise, and responsibility (and
how they inter-relate). |
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Systems: Formal and informal
procedures that govern everyday activity,
covering everything from management
information systems, through to the
systems at the point of contact with
the customer (retail systems, call centre
systems, online systems, etc).
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The 4Ss across the bottom of the model are less tangible,
more cultural in nature, and were termed 'Soft Ss'
by McKinsey:
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Skills:
The capabilities and competencies that
exist within the company. What it does
best. |
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Shared
values: The values and beliefs of
the company. Ultimately they guide employees
towards 'valued' behavior. |
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Staff:
The company's people resources and how
they are developed, trained, and motivated. |
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Style:
The leadership approach of top management
and the company's overall operating approach. |
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In combination they provide another effective
framework for analyzing the organization and its
activities. In a marketing-led company they can
be used to explore the extent to which the company
is working coherently towards a distinctive and
motivating place in the mind of consumer.
Ask yourself: Are we effectively harnessing
each part of our organization to build our brand
and our business?
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