Mc kinsey’s 7 s model

1. McKinsey’s 7-S
Model
Presented By,
Jerrin Mary John

2. HISTORY
• First mentioned in “The Art of Japanese Management”
by Richard Pascale & Antony Athos (1981)
• Appeared in “In search of Excellence” by Robert J.
Waterman & Tom Peters (1982)
• Consultants at McKinsey & Company

3. McKinsey’s 7-S Model
HARD Ss
SOFT Ss

4. BASIS OF MODEL
• Deals organizational change
• Interconnected
• No Implied hierarchy
• Equally important
• Change according to organization

5. PURPOSE
• To show inter-relationship between
elements
• Bring together

6. CLASSIFICATION
HARD ELEMENTS
• Strategy
• Structure
• System
SOFT ELEMENTS
• Shared value
• Skills
• Staff
• Style

7. STRATEGY
• Long term direction
• Plan or course of action in allocating resource to
achieve identified goals over time
• Plan of action an organization prepares in response
to, or anticipation of, change in external
environment

8. STRUCTURE
• Represents how organizations are organized
• How organizational units are relate to each other:
centralized, decentralized, matrix, network
• Formal relationships

9. SYSTEM
• Activities and procedures that staff members
engage in to get the job done
• Formal or Informal ; complements the
organizational structure
• Eg:- Cost and Accounting procedure,
Performance Evaluation System

10. SHARED VALUE
• Super – Ordinate Goals
• Goals of higher order
• Represents the core values and aspirations of the
organization
• Eg: IBM, HP

11. SKILLS
• Distinctive Capabilities
• Eg: HL - marketing
TELCO - engineering
IBM - customer service
SON Y - new product development

12. STAFF
• Company’s people resources and how they are
developed , trained and motivated
• 3 aspects: Select, Develop, Motivate
• Key issues: Selection, Reward, Recognition,
Motivation

13. STYLE
• Employees shared and common way of thinking
and behaving
• Leadership style
• Good fit between Culture and Strategy

14. Slide Title

15. MERITS OF 7-S FRAMEWORK
• Highlights organizational interconnections and
their role in affecting change
• Brings all 7-S s in Harmony
• If in good alignment, organization is energized to
execute strategy to the best of its ability
• Provides a convenient checklist for judging
whether an organization is ready for implementing
strategy
• Helps strategists in evaluating organizational
strengths and weaknesses

16. LIMITATIONS OF 7-S FRAMEWORK
• Shows that relationships exists and it provides
some limited clues as to what constitutes more
effective strategy implementation
• Not precise
• External environment is not mentioned
• Does not highlight areas: Innovation, Knowledge,
Quality, Customer - driven service

17. USES OF 7-S FRAMEWORK
• To understand how the organizational elements
are inter-related
• To identify what needs to be realigned so as to
improve performance
• To identify the gaps and inconsistencies between
the current position and future position of the
company

18. CONCLUSION
• The McKinsey 7-S model can be applied to
elements of a team or project as well
• Inconsistency between some of the elements can
be identified out by this classic model