It describes employees according to: How hard they work. The McKinsey 7S model can be applied to elements of a team or a project as well. Macroenvironmental factors (PEST)Each factor is assigned a weighting that is appropriate for the industry. The McKinsey Matrix is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation. The Seven Elements The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements: Hard Elements Soft Elements Strategy Market growth rate 2. The attractiveness of the market is represented on the y-axis and the competitiveness and competence of the business unit are plotted on the x-axis. Market size 3. In the 1970s, General Electric asked its consultants, McKinsey, to develop a portfolio management model that would suit it needs. McKinsey states that you can divide the internal organization of a company into 7 main components (factors). The GE Mckinsey matrix is also known as the nine box matrix, because in the graph, there are nine boxes where the product can be plotted. The industry attractiveness then is calculated as follows:

Industry rivalry 6. Both axes are divided into three categories (high, medium, low) thus creating nine cells. This 9-Box Performance Grid is very similar.. Intelligence is similar to Potential. The GE McKinsey Matrix comprises two axes. The vertical axis of the GE / McKinsey matrix is industry attractiveness, which is determined by factors such as the following: 1.

The business unit is placed within the matrix using circles. All 7 factors are in balance with optimum operational management. In the 1970s, GE requested consultation from McKinsey & Company to manage a huge and complex portfolio of unrelated products.

Taken together, the Gallup and McKinsey findings underscore how important it is for executives and line managers to address the role ambiguity that’s all too common in matrix organizations. Once the product is in its place, you can decide the strategy for the product. There are 3 main strategies in the GE McKinsey matrix which are grow, hold and harvest.

(For more on the research behind these two studies, see sidebar, “About the research.”) Ubiquitous and unexceptional How intelligent they are. If something within your organization or team isn't working, chances are there is inconsistency between some of the seven elements identified in the model. A business portfolio is a group of businesses that collectively make up a company. The alignment issues apply, regardless of how you decide to define the scope of the areas you study. The McKinsey 7S model is a management model for making an internal analysis. These individual businesses are often referred to as strategic business units (SBUs). These are: strategy, structure, systems, shared values, style, staff, and skills. The McKinsey 7s model provides the following checklist for the alignment of organizational strategy: The above figure lists some questions whose answers must be known to the management. The GE-McKinsey nine-box matrix is a strategy tool that offers a systematic approach for the multi-business corporation to prioritize its investments among its business units. Synonyms for this method are; GE Matrix , Business Assessment Array and GE Business Screen . Global opportunities 7.

The GE McKinsey Matrix, also know as the McKinsey Nine Box Matrix is a strategic tool used for business portfolio planning. In this article we provide a detailed explanation and a detailed 7S model.

GE McKinsey matrix strategies

The McKinsey 7S Framework is a Tool that describes a global picture of a Company or Business, according to 7 Elements. It, therefore, explains the plan formulated and enlist the ways of attaining the organizational goals, handling the market competition, coping with changing consumer demands and dealing with the business environment …

Maybe you already know Manstein ‘s matrix (we talked about a similar matrix in our “Teamwork Skills and Profiles” page).. This global picture can be used for different purposes: Tracking the evolution of the company over time.

You can apply the McKinsey 7-S framework to almost any organizational or team effectiveness issue.

Industry profitability 5. Demand variability 4. The GE McKinsey Matrix is a strategy tool that offers a systematic approach for the multi-business corporation to prioritize its investments among its business units.