7s

1. Mckinsey 7S Model
Group Members
Raminder Kaur
Manpinder Kaur
Rahul Chhabra
Samridhi
Sonam
HRMT 5180
OD & Leadership

2. Introduction
• Developed in 1980
• By two famous consultants Tom Peter and Robert H. Waterman
• With assistance from Richard Pascal and Anthony G. Athos
• Used for strategic planning
• Include 7 elements such as strategy, structure, system, skills, staff, style
and shared values.
• Elements must be aligned together to operate effectively the organization
Introduction
Seven
Elements
Uses
Application
s
Advantages &
Disadvantages
Example References

3. Hard ‘S’
• Structure: Includes who is
accountable to whom.
• System: Process and procedure of
the company which reveals how
decisions can be made.
• Strategy: Plan to achieve
sustained competitive advantage.
Soft ‘S’
• Skills: Capabilities and competences
possessed by employees.
• Staff: how employees are recruited,
trained, motivated and rewarded.
• Style: How top-level managers represent
the company.
• Shared Values: Company’s norms and
actions to create values.
Introduction Seven
Elements
Uses Applications
Advantages &
Disadvantages
Example References

4. Uses
• To facilitate organizational change.
• To help in implementing new strategy.
• To identify how each area may change in a future.
• To facilitate the merger of organization.
Introduction
Seven
Elements
Uses
Application
s
Advantages &
Disadvantages
Example References

5. Applications
Step 1: Identify the areas that are not effectively aligned.
Step 2: Determine the optimal organization design
Step 3: Decide where and what changes should be made.
Step 4: Make the necessary changes
Introduction
Seven
Elements
Uses
Application
s
Advantages &
Disadvantages
Example References

6. Advantages
• Longstanding theory.
• Track effectively the impact of
changes of elements.
Disadvantages
• Long-term model.
• Rely on internal factors
• Not effective when external
factors influence the
organization.
Introduction
Seven
Elements
Uses
Application
s
Advantages &
Disadvantages
Example References

7. Nokia’s Mckinsey’s 7S Model
Structure
• Top line structure
• Decentralized and agile structure needed to compete with technological
environment
Strategy
• Options for the company :-optimizing costs and volume, maximizing
performance, or maximizing security.
• Nokia chose optimizing cost which made it impossible to excel in software
Introduction
Seven
Elements
Uses
Application
s
Advantages &
Disadvantages
Example References

8. Model continued
Style
• Top managers had business background but lacked technological competence
• Morale of Employees was low
• Effective transformation in leadership was required to foster innovation and creativity .
Skills
• The issue was with upper management.
• The role of Chief Technology Officer (CTO) vanished from the top management team between 2007 and 2010.
• Apple's top executives, on the other hand, were all engineers. Nokia should have focused on improving the
technical skills of its top leaders.
Staff
Employees were business oriented and lacked technical skills which is a significant requirement for software
company

9. References
Jurevicius, O. (2021, November 11). McKinsey 7S Model. Strategic Management Insight.
https://strategicmanagementinsight.com/tools/mckinsey-7s-model-framework/
Brandminds Live (2021, February 5). McKinsey 7S model of Nokia - where the company went
wrong. https://brandminds.live/mckinsey-7s-model-of-nokia-where-the-company-went-wrong/
Introduction
Seven
Elements
Uses
Application
s
Advantages &
Disadvantages
Example References