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McKinsey's 7s
Framework
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The McKinsey 7S Framework
The Seven Elements
The McKinsey 7S model involves seven interdependent factors
which are
categorized as either "hard" or "soft" elements:
Hard Elements Soft Elements
Strategy
Structure
Systems
Shared Values
Skills
Style
Staff
"Hard" elements are easier to define or identify and management
can directlyinfluence 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. However, these
soft elements are
as important as the hard elements if the organization is going
to be successful.
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Mckinsey 7s model
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The McKinsey 7S Framework
STRATEGY
the integrated vision and direction of the
company as well as the manner in which itcommunicates and
implements that vision and
direction.
STRUCTURE
the form of the organisational chart and
interconnections between positions in the
organisational hierarchy.
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The McKinsey 7S Framework
SYSTEMS
the procedures and routine processes required to
perform the work , including the ways informationmoves through
the organisation.
STAFF
the personnel categories within the organisation,
e.g. marketers, engineers.
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The McKinsey 7S Framework
STYLE
the characterisation of the ways key managers
set priorities and behave in order to achieve theorganisation's
goals.
SKILLS
the distinctive capabilities of the organisation as a
whole.
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The McKinsey 7S Framework
SHARED VALUES
the core beliefs underlying the organisation's
existence and its expectations of its members.Values act as an
organisation's conscience and
provide guidance in times of crisis.
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The McKinsey 7S FrameworkHow to Use the Model
The model is based on the theory that, for an organizationto
perform well, these seven elements need to be alignedand mutually
reinforcing. So, the model can be used tohelp identify what needs
to be realigned to improve
performance, or to maintain alignment (and performance)during
other types of change.
Whatever the type of change - restructuring, newprocesses,
organizational merger, new systems, change ofleadership, and so on
- the model can be used tounderstand how the organizational
elements areinterrelated, and so ensure that the wider impact
ofchanges made in one area is taken into consideration.
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The McKinsey 7S FrameworkAdvantage
easy to apply as an analytical framework.
the analysis is broad enough to encompass the key
characteristics of
an organization .
used to asses the impact of strategic change on the client
organization
through cross-analysis.
Combines both the rational and hard elements with emotional and
soft
elements,
The strengths and weaknesses of an organization can be
identified by
considering the links between each of the Ss.
No S is a strength or a weakness in itself, but is a relative
measure.
Each factor's degree of support for the other S is relevant.
AS that harmonize with the other S is considered a strength, and
a
dissonance a weakness.
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The McKinsey 7S FrameworkDisadvantage
bias for action.
close to the customer.
autonomy and entrepreneurship .
productivity through people.
hands-on value driven leadership.
stick to the knitting.
simple form, lean staff .
simultaneous tight-loose properties.
The human brain finds it notoriously difficult to predict the
effects ofchanges in complex systems.
The model has limited use as a real-time, numerical maintenance
and
monitoring tool.
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Key Points
The McKinsey 7Ss model is one that can be applied toalmost any
organizational or team effectiveness issue. Ifsomething within your
organization or team isn't working,chances are there is
inconsistency between some of the
elements identified by this classic model. Once
theseinconsistencies are revealed, you can work to align
theinternal elements to make sure they are all contributing tothe
shared goals and values.
The process of analyzing where you are right now in termsof
these elements is worthwhile in and of itself. But bytaking this
analysis to the next level and determining theultimate state for
each of the factors, you can really moveyour organization or team
forward.
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Thank you
