Boston Communications Consulting 7S Framework

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Boston Communications Consulting 7S Framework

• Crystal Diane Byrd
• Spring 2003

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Agenda

• Case for Market Entry
• Factual Overview and reasons for selecting the 7S
  framework
• Essence of the Framework
• Application of 7S Framework to the companys
  problem
• Recommendations
• Lessons Learned

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Case for Market Entry

• Case 4.2 Boston Communications Consulting Co.
  has grown from 3 consultants to 100 in 2 years.
  It is now preparing to expand overseas and work
  with global clients. How would you help the firm
  develop a strategy and what would you recommend?
• Mckinsey 7-S Framework strategy, structure,
  systems, style, staff, skills and shared values

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Factual Overview

• Functions/Uses of 7-S-Model
• Used for internal analysis of a company
• Analyze strategic characteristics of a company
• Tool for determining the doability of
  strategies
• Used to create alignment among various
  departments of an organization
• Examines effect of change on a company
• Analyze the successful and dysfunctional
  aspects of an organization

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Factual Overview cont

• Weakness
• Focuses on internal fit of an organization
• Ignores effect of factors external to the
• organization
• Why 7-S Model
• Profitable, purposeful, efficient organizational
  action cannot be successfully executed if
  internal elements are not aligned

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Essence of the Framework

• Hard S - rational and factual aspects focuses
  on Strategy, Systems, and Structure
• Strategy a plan of action to maintain
  competitive advantage over the competition
• Systems measures and actions which accommodate
  the execution of daily activities
• Structure the way the organization is
  structured, who reports to whom

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Essence of the Framework

• Soft S - social and interpersonal behavior
  focuses on Style, Shared Values, Staff, and
  Skills
• Style leadership style
• Shared Values company culture, work ethics etc
• Staff company employees and their capabilities
• Skills core competencies of the company as well
  as that of its staff

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Application of the Framework - Strategy

• Global strategy
• Standardization of products, processes
• and operation around the world
• Multidomestic strategy
• Adjust products and operations according
• to each country or market served
• Source Strategic Management. Pitt and Lei, 2003

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Application of the Framework - Systems
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Application of the Framework Structure

• Geographic Division Structure
• Hierarchical -Two way open communication
• Self contained product/function to meet local
  needs
• Promotes a high level of decentralization

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Application of the Framework Style

• The competitive executive
• Flexible and adaptive to Stakeholders needs
• Seizes and exploits opportunities
• Focuses on increasing the companys share of
  market at a profit

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Application of the Framework Shared Values

• Maintenance of the firms corporate culture
  globally
• Strong work ethics among new employees
• Healthy balance of competitiveness and
  cooperation amongst applicants

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Application of the Framework - Staff

• Recruitment of new consultants in their
  respective countries
• Attract experienced employees at other firms
• Offer incentives which should be determined by
  the culture of the country
• Provide additional training

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Application of the Framework - Skills

• Skills for an International Market
• Communication, Administrative, Finance and
  Accounting, Customer Service, Marketing, Product
  Development, IT
• High Level of linguistic capabilities
• Examine foreign recruitment opportunities
• Seek the best job techniques for individual
  countries
• Exposure of US based consultants to the global
  marketplace

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Recommendations

• Consider application of a framework which
  includes external considerations SWOT
• Open offices in UK and Germany since competition
  is not very strong here
• Avoid France since Cap Gemini is already an
  established presence and would be a formidable
  competitor
• Form an alliance or partnership with an already
  established smaller firm in the consulting
  industry
• Do extensive market analysis to determine market
  profitability, the competition, the governmental
  or legal restrictions, and requirements in these
  countries

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Lesson Learned

• It is best to apply two frameworks to a case
  before making a decision
• 7s framework pertains to the internal alignment
  of a firm helping them to work towards shared
  goals and values
• There are considerable challenges to global
  expansion capital, labor, government
  regulations, tax
• Companies need a strong, competitive global
  strategic plan
• You must take into consideration cultural,
  language and customer differences