McKinsey Model

STAR Model

McKinsey Model

Strategy

X

The “company’s formula for winning” (Galbraith, 2002, p. 10) that gives it a competitive advantage in the marketplace

· The organization’s direction and long-term vision

· Includes which products and services it will create, and markets and customers it will pursue

· Strategy is typically the starting point for the design effort because it “dictates which activities are the most necessary, thereby providing the basis for making the best trade-offs in the organization design” (Galbraith, 2002, p. 11).

X

People

X

Human resources practices related to talent

· Hiring, managing performance, learning and development, and programs to grow talent such as rotations and succession plans

Rewards

X

Motivation and incentives for achievement of goals

·  Compensation and recognition, promotions

·  Goals and measurement systems such as scorecards and dashboards

Processes

X

The flow of information that cuts across the structural hierarchy to enable effective collaboration

· Decision-making processes and cross-functional collaboration mechanisms

· Includes concepts such as networks, shared processes and goals, teams, integrative roles, and matrix structures

Structure

X

Distribution of resources, power, and authority

· Role definition, responsibilities, and relationships among departments

· Includes concepts such as span of control, centralization and decentralization, and department organizing principles such as functions, products, geographies, or markets

X

Systems

X

Shared Values

X

Skills

X

Staff

X

Style

X