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McKinsey 7S strategy model

The McKinsey 7S framework summarised by Waterman et al. (1980) was developed by McKinsey consultants in the 1980s and it is often referenced when referring to managing change and strategy development in a business.






We reference the McKinsey 7S model in the E-consultancy Managing an E-commerce team report as a method of reviewing the internal capabilities of an organisation to manage digital channels. Some of the key issues that require management are shown in the table below.

The original refererence is:

Waterman, R.H., Peters, T.J. and Phillips, J.R. (1980) Structure is not organisation. McKinsey Quarterly in-house journal. McKinsey & Co., New York.

Element of 7S model

Application to digital marketing team

Key issues from practice and literature

Strategy

The significance of digital marketing in influencing and supporting organisations' strategy

Gaining appropriate budgets and demonstrating / delivering value and ROI from budgets. Annual planning approach.

Techniques for using digital marketing to impact organisation strategy

Techniques for aligning digital strategy with organisational and marketing strategy

Structure

The modification of organizational structure to support digital marketing.

Integration of team with other management, marketing (corporate communications, brand marketing, direct marketing) and IT staff

Use of cross-functional teams and steering groups

Insourcing vs. outsourcing

Systems

The development of specific processes, procedures or information systems to support digital marketing

Campaign planning approach-integration

Managing/sharing customer information

Managing content quality

Unified reporting of digital marketing effectiveness

In-house vs. external best-of-breed vs. external integrated technology solutions

Staff

The breakdown of staff in terms of their background and characteristics such as IT vs. Marketing, use of contractors/consultants, age and sex.

Insourcing vs. outsourcing

Achieving senior management buy-in/involvement with digital marketing

Staff recruitment and retention. Virtual working

Staff development and training

Style

Includes both the way in which key managers behave in achieving the organizations' goals and the cultural style of the organization as a whole.

Relates to role of digital marketing team in influencing strategy –

it is it dynamic and influential or conservative and looking for a voice

Skills

Distinctive capabilities of key staff, but can be interpreted as specific skill-sets of team members.

Staff skills in specific areas: supplier selection, project management, Content management, specific e-marketing approaches (SEO,PPC, affiliate marketing, e-mail marketing, online advertising)

Superordinate goals

The guiding concepts of the digital marketing organisation which are also part of shared values and culture. The internal and external perception of these goals may vary

Improving the perception of the importance and effectiveness of the digital marketing team amongst senior managers and staff it works with (marketing generalists and IT)


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by Dave Chaffey last modified 07-02-2008

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Blast from the past

Posted by Anonymous User at 07-02-2008
Thanks for putting the 7S model up. It really is such a good framework for organisational redesign around the web. I can appreciate this now I'm in a business wanting to do this, rather than the exam room. ;-)

Kind regards

Eduardo

Managing Digital Channels

Posted by Anonymous User at 09-02-2008
Hi Eduardo,

I remember you!

At E-consultancy we are repeating our 2005 Managing an E-commerce team report, but this time it's Managing Digital Channels. I will try to find your email to setup an interview, but if not please contact me via the Contact Us.

Dave

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