McKinsey Framework for Reliance Industries

McKinsey's 7-S Framework

Figure 11 McKinsey's 7-S Framework

Source: www.mckinsey.com

To analyze the different aspects of the organization, McKinsey has proposed the above shown framework. The combination of these 7-S provide effective framework for analyzing the organization and its activities.

The 3Ss across the top of the model are described as 'Hard Ss':

* Strategy: The direction and scope of the company over the long term.

* Structure: The basic organization of the company, its departments, reporting lines, areas of expertise, and responsibility (and how they interrelate).

* Systems: Formal and informal procedures that govern everyday activity, covering everything from management information systems, through to the systems at the point of contact with the customer (retail systems, call centre systems, online systems, etc).

The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed 'Soft Ss' by McKinsey:

* Skills: The capabilities and competencies that exist within the company.

* Shared values: The values and beliefs of the company which guide employees towards 'valued' behaviour.

* Staff: The Company's people resources and how they are developed, trained, and motivated.

* Style: The leadership approach of top management and the company's overall operating approach.

Analysis of Reliance Industries Ltd. based on McKinsey's 7-S Framework

Strategy: Reliance believes in sustainable development. It has made this as their cornerstone of their business strategy to achieve sustainable and profitable growth. Following issues form a corner-stone of the Reliance strategy:

* Energy Security

* Growth through Innovation

* Health & Safety

* Environment

* Product Responsibility

* Social Institution Building

Structure: The Board has established the following Committees to assist the Board in discharging its responsibilities:

* Audit Committee

* Remuneration Committee

* Shareholders'/Investors' Grievance Committee

* Finance Committee

* Health, Safety and Environment Committee

* Corporate Governance and Stakeholders' Interface Committee

* Employees Stock Compensation Committee

The Board has adopted charters setting forth the roles and responsibilities of each of the above Committees as well as qualifications for Committee membership, procedures for Committee members' appointment and removal, Committee structure and operations and reporting to the Board. The Board may constitute new Committees or dissolve any existing Committee, as it deems necessary for the discharge of its responsibilities.

The corporate structure of Reliance Industries is followed in the following manner:

 Constitution of a Board of Directors of appropriate composition, size, varied expertise and commitment to discharge its responsibilities and duties.

 Ensuring timely flow of information to the Board and its Committees to enable them to discharge their functions effectively.

 Independent verification and safeguarding integrity of the Company's financial reporting.

 A sound system of risk management and internal control.

 Timely and balanced disclosure of all material information concerning the Company to all stakeholders.

 Transparency and accountability.

 Compliance