Seema Lall

on McKinsey 7-S Framework

of

Gujarat Cooperative Milk Marketing Federation

(AMUL)

A Presentation by :-:

McKinsey 7-S Framework

Source : http://www.buildingbrands.com

Hard Ss

Soft Ss

HARD Ss

StructureStrategySystems

SOFT Ss

Staff SkillsStyleShared -Values

McKinsey 7-S framework exemplifies…….

Seven areas of an organisation- must work in harmony

Elements- interlinked and affected by one another

Growth- managing the interaction between all the 7 factors

HARD Ss

StructureStrategySystems

SOFT Ss

Staff SkillsStyleShared -Values

McKinsey 7-S Framework & AMUL

The 7-S could be a useful “laundry list” of things to consider when assessing internal "fit" or coherence

The Hard Ss and the Soft Ss together give an effective framework for,

• analyzing the organization and its activities• exploring the extent to which the company is working coherently

towards a distinctive and motivating place in the minds of the consumers

HARD Ss

StructureStrategySystems

SOFT Ss

Staff SkillsStyleShared -Values

AMUL- An Overview

Situation of farmers

Setting up of Kaira District Co-operative Milk Producers' Union

Setting Up of Gujarat Cooperative Milk Marketing Federation

To differentiate its high quality products, KCMPUL decided to brand its produce

Hence, ‘Amul’ was born; derived from the Sanskrit word ‘Amulya’, meaning priceless, also stood for 'Anand Milk Union Limited'

The Co-operative:Gujarat Cooperative Milk Marketing Federation

The Brand:Amul

Brand larger than the co-operative

Amul – part of our culture

Hard Ss Begin…Application of the Framework – Structure

• Organization Structure (Visible Aspect)

“ANAND PATTERN”

3 Tier

TOP:BOD of 1 elected rep.of each Milk Union

MIDDLE:17 members on the board, 12 are on chair of the affiliated primaries

BOTTOM:9 members of respective village co-op

Milk Federation

(State Level)

Milk Union(District Level)

Co-Operative Society (Village Level)

Elected Mgt. Committee

A.G.M A.G.M

A.G.M A.G.M

G.M G.M

G.M G.M

M.D

Z.M

Z.M

Z. M

Z.

M

S.O

S.OS.

O

S.P

S.P

S.P

S.O

S.P

S.O

S.P

Abbreviations M.D -Managing Director G.M - General Manager A.G.M - Assistant General Manager Z.M - Zonal Manager S.O - Sales Officer S.P - Sales Person

Application of the Framework – Structure contd……

Z.M

Application of the Framework – Structure contd.

• Invisible AspectTwo-way constant communicationDelegation of responsibilities

Role clarity in the reporting system No internal competition Economies of scale achieved

Application of the Framework - Strategy

Transformation

Diversification

Umbr

ella

Brand

ing

Advertising

Alliances

•Alliances

-Forging alliances with co-ops. across India to help in procurement and mfg.

-Equitable alliances with organized retail chains

•Strategy ofjust-in-time inventory

Cu

stom

erF

eed

bac

kP

rici

ng

AMUL

Application of the Framework - Systems

* * Ho = method or form

Shin = shiny needle or compassHoshin = ‘way of setting direction’Kanri = ‘control or management’

* Info. Mgt.-automated milk collection system

-customized ERP system

-data analysis software

-all zonal, regional and member dairies through VSAT

-.coop domain to position its brand

* * *

Soft Ss Begin…Application of the Framework - Staff

• Requirements:

ComputerLiteracy

Dedication

The role of HRD starts from here…

Application of the Framework - Skills

Superior Brand

Building

Effective Supply Chain

Management

Unmatched

Distribution Reach

Core Competence

Implementation of best practices

…..That’s also the shared value

Application of the Framework –Style

Distributed &

Exercised

Components:

-building networks

-co-ordination for competitiveness

(bureaucracy away and autonomy to the managers) -technology for effectiveness

LeadershipInspirational

Ownership

Transformational

Application of the Framework – Shared Values

Maintenance of the firm’s corporate culture

• carry on the battle to ensure greater food security, prosperity, and peace to the world

• co-operative culture, co-operative networking, market acumen and respect for both producer and the consumer

• True development involves building the institutional capacity to respond to new and diverse challenges; to adapt, to innovate and to create newer institutional forms

• Best Practices (Knowledge Sharing): a skill well-developed

EmpowerIndia's Rural Producersrecognize the tremendous resource that Indian farmers represent

resource+professional manager =return India to its position as a surplus producer

Thus…….

Growth at AMUL is about, Managing the interaction between a number of factors

(McKinsey 7s model) Hard Ss are vital to AMUL’s growth Success of Hard Ss depend most on Soft Ss AMUL tends to all the flower pots‘Being able to grow and succeed is not about being a big

organisation- it is about being fast- having one’s finger on the pulse on all the factors (7-S)’

At Amul all the 7s co-operate with each other to make whatAmul is today, a co-operative that is an embodiment of faith – faith in the ability of Indian farmers to break the shackles of poverty and oppression.

AMUL : truly the taste of India

Yet another reason to feel proud of being an Indian………