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Methods and concepts for Value Based Management (VBM)

McKinsey 7-s Framework

The 7-S framework of McKinsey is a Value Based Management (VBM) model that describes how one can holistically and effectively organize a company. Together these factors determine the way in which a corporation operates.

Shared Value
The interconnecting center of McKinsey's model is: Shared Values.
What does the organization stands for and what it believes in. Central beliefs and attitudes.

Strategy
Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers.

Structure
The way the organization's units relate to each other: centralized, functional divisions (top-down); decentralized (the trend in larger organizations); matrix, network, holding, etc.

System
The procedures, processes and routines that characterize how important work is to be done: financial systems; hiring, promotion and performance appraisal systems; information systems.

Staff
Numbers and types of personnel within the organization.

Style
Cultural style of the organization and how key managers behave in achieving the organization’s goals. Management Styles.

Skill
Distinctive capabilities of personnel or of the organization as a whole. Core Competences.