Bambi Rose M. Española

The 7-S Framework of McKinsey is a management model which includes 7 factors to organize a company in an holistic and effective way.

HistoryThe 7-S Framework was first mentioned in

"The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981.

It also appeared in "In Search of Excellence" by Peters and Waterman 1982.

The model was born at a meeting of these four authors in 1978.

McKinsey’s 7s Model

Shared Values (Superordinate Goals)

the interconnecting center of McKinsey's model

set of traits, behaviors, and characteristics that the organization believes in

include the organization’s mission and vision

Strategy plans for the allocation of a firms scarce

resources over time to reach identified goals

plans of action an organization prepares in response to, or anticipation of, changes in its external environment

Structurerepresents how the company is organized

refers to how organization's units relate to each other: centralized; decentralized; matrix, network

Systemrefers to the 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 center systems)

Staffrefers to the company's people resources and

how they are developed, trained and motivated

selection, reward, recognition, retention, motivation and assignment to appropriate work are all key issues here

Style

refers to the employees shared and common way of thinking and behaving - unwritten norms of behaviour and thought

Skillrefers to the distinctive capabilities of

personnel or of the organization as a whole which are needed to effectively execute the company’s vision, values, goals and strategies

Uses of the 7-S Model

helps identify the strengths and weaknesses of an organization and

understanding the core and most influential factors in an organization’s strategy

determining how best to realign an organization to a new strategy or other organization design