McKinsey 7S Framework of analysis

for
ICICI Bank

By
Pradeep Thangavel
0921022

2nd MBA-J
The McKinsey 7S Framework

McKinsey 7S framework was developed in the early 1980s by Tom Peters and Robert
Waterman, two consultants working at the McKinsey & Company consulting firm, the basic
premise of the model is that there are seven internal aspects of an organization that need to be
aligned if it is to be successful.

The 7S model can be used in a wide variety of situations

 Improve the performance of a company.

 Examine the likely effects of future changes within a company.
 Align departments and processes during a merger or acquisition.
 Determine how best to implement a proposed strategy.

The McKinsey 7S model involves seven interdependent factors which are categorized
as either "hard" or "soft" elements:

Hard Soft Elements

Elements
 Strategy  Shared
 Structure Values
 Systems  Skills
 Style
 Staff

"Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes
and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and are less
tangible and more influenced by culture.
ABOUT ICICI:

ICICI Bank (formerly Industrial Credit and Investment Corporation of India) is a major

banking and financial services organization in India. It is the 4th largest bank in India [3] and
the largest private sector bank in India by market capitalization. The bank also has a network
of 1,700+ branches (as on 31 March 2010) and about 4,721 ATMs in India and presence in
19 countries,[4] as well as some 24 million customers (at the end of July 2007). ICICI Bank
offers a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and specialization subsidiaries and affiliates
in the areas of investment banking, life and non-life insurance, venture capital and asset
management.ICICI Bank is also the largest issuer of credit cards in India.[5]. ICICI Bank's
shares are listed on the stock exchanges at Kolkata and Vadodara, Mumbai and the National
Stock Exchange of India Limited; its ADRs trade on the New York Stock Exchange (NYSE).

The Bank is expanding in overseas markets and has the largest international balance sheet
among Indian banks. ICICI Bank now has wholly-owned subsidiaries, branches and
representatives offices in 19 countries, including an offshore unit in Mumbai. This includes
wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary through which the
HiSAVE savings brand[6] is operated), offshore banking units in Bahrain and Singapore, an
advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and
representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the
United Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident
Indian) population in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total
income to Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The
bank's CASA ratio increased to 30% in 2008 from 25% in 2007

STRUCTURE:

An organizational structure is a mainly hierarchical concept of subordination of entities that

collaborate and contribute to serve one common aim.

Organizations are a variant of clustered entities. An organization can be structured in many

different ways and styles, depending on their objectives and ambience. The structure of an
organization will determine the modes in which it operates and performs.

Organizational structure allows the expressed allocation of responsibilities for different

functions and processes to different entities such as the branch, department, workgroup and
individual. Individuals in an organizational structure are normally hired under time
limited work contracts or work orders, or under permanent employment contracts or program
orders.
Organizational structure is nothing but the way the organization is structured and who reports
to whom. 

Questions to be get cleared while answering about the structure of the company are:

 How is the company/team divided? 

 What is the hierarchy?
 How do the various departments coordinate activities? 
 How do the team members organize and align themselves?
 Is decision making and controlling centralized or decentralized? Is this as it should be,
given what we're doing? 
 Where are the lines of communication? Explicit and implicit?