The document discusses the McKinsey 7S framework, which analyzes seven internal factors ("hard" and "soft" elements) that must be aligned for an organization to be successful. The hard elements are strategy, structure, and systems, which management can directly influence. The soft elements are shared values, skills, style, and staff, which relate to culture and are more difficult to define. All elements are interrelated, so a change in one affects the others. The framework can be used to diagnose organizational problems, develop strategy, and ensure changes in one area consider wider impacts.

1. 4.1THE MCKINSEY 7S FRAMEWORK
The McKinsey 7Ss model is one that can be applied to almost any
organizational or team effectiveness issue. This model is a tool for managerial
analysis and action that provides a structure with which to consider a company as a
whole, so that the organization’s problems may be diagnosed and a strategy may
be developed and implemented.
How do we go about analyzing how well an organization is positioned to
achieve its intended objective? This is a question that has been asked for many
years, and there are many different answers. Some approaches look at internal
factors, others look at external ones, some combine these perspectives, and others
look for congruence between various aspects of the organization being studied.
Ultimately, the issue comes down to which factors to study.
While some models of organizational effectiveness go in and out of fashion,
one that has persisted is the McKinsey 75 framework. Developed in the early
1980s by Tom Peters and Robert Waterman, two consultants working at the
McKinsey & Company consulting firm, the basic premise of the model is that
there are seven internal aspects of an organization that need to be aligned if it is to
be successful.
The 7S model can be used in a wide variety of situations where an alignment
perspective is useful to:
1) Improve the performance of a company
2) Examine the likely effects of future changes within a company;
3) Align departments and processes during a merger or acquisition; or
4) Determine how best to implement a proposed strategy.

2. The model is based on the theory that, for an organization to perform well, these
seven elements need to be aligned and mutually reinforcing. So, the model can be
used to help 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, new processes, organizational merger,
new systems, change of leadership, and so on - the model can be used to
understand how the organizational elements are interrelated, and so ensure that the
wider impact of changes made in one area is taken into consideration.
THE SEVEN ELEMENTS
The McKinsey 7S model involves seven interdependent factors, which are
categorized as either “hard” or “soft” elements:
fig no7:seven s model
“Hard” elements are easier to define or identify and management can directly
influence them: These are strategy statements; organization charts and reporting
lines; and formal processes and IT systems.

3. “Soft” elements, on the hand, can be more difficult to describe, and 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.
Placing Shared Values in the middle of the model emphasizes that these
values are central to the development of the other critical elements.
Table6: Hard and Soft elements
All 7Ss are interrelated, so a change in one has a ripple effect on all the others. It is
impossible to make progress on one without making progress on all. Thus to
improve your organization, you have to master systems thinking and pay attention
to all of the seven elements at the same time.
There is no starting point or implied hierarchy – different factor may
drive the business in any one organization.
Hard Elements Soft Elements
Strategy
Structure
Systems
Shared Values
Skills
Style
Staff

4. Shared Values
Shared values are commonly held beliefs, mindsets, and assumptions that
shape how an organization behaves- its corporate culture. Shared values are what
engender trust. They are an interconnecting center of the 7Ss model. Values are the
identity by which a company is known throughout its business areas, what the
organization stands for and what it believes in, it central beliefs and attitudes.
These values must be explicitly stated as both corporate objectives and individual
values.
Structure
Structure is the organization chart and associated information that shows
that reports to whom and tasks are both divided up and integrated. In other words,
structures describe the hierarchy of authority and accountability centralized,
functional divisions (top-down); decentralized (the trend in larger organizations);
matrix, network, holding, etc. These relationships are frequently diagrammed in
organization charts. Most organization use some mix of structures – pyramidal,
matrix or networking ones – to accomplish their goals.
Strategy
Strategies are plans an organization formulates to reach identified goals,
and a set decisions and action aimed at gaining a sustainable advantage over the
competition.
Systems
Systems define the flow of activities involved in the daily operation of
business, including its core processes and its support systems.

5. They refer to the procedures, processes and routines that are used to manage the
organization and characterize how important is to be done. Systems include:
 Business system
 Business Process Management System (BPMS)
 Management information system
 Innovation system
 Performance management system
 Financial system/capital allocation system
 Compensation system/ reward system
 Customer satisfaction monitoring system
Style
“Style” refers to the cultural style of the organization, how key managers
behave in achieving the organization’s goals, how managers collectively spend
their time attention, and how they use symbolic behavior. How management acts
more important that what management says.
Staff
“Staff” refers to the number and types of personnel within the
organization and how companies employees and shape basic values.
Skills
“Skills” refer to the dominant distinctive capabilities and competencies of
the personnel or of the organization as a whole.

6. Relation to Company
STYLE
Here style, means that company employees share a common way of
thinking and behaving. Also it refers to the style of leadership of the management.
The style of management at KS&DL is participating style.
It believes that with the participation and involvement of all the company’s
objectives can be successfully met.
The employees participate through suggestion scheme policy and provide
their valuable.
STRATEGY
The concept of strategy purpose, vision, objectives, goals and major action
plans and policies. A strategy reflects a company’s awareness of how, when and
where it should compete, against it should compete, and for what purpose it should
compete.
SHARED VALUE
Shared values refer to set values and aspiration that go beyond the
conventional formal statement of corporate objectives. Their goals are the
fundamental ideas around which a business is built. They are main values culture
of an organization is usually determined by the sum of the values, benefits and
working practices that exist within organizational operational standards.

7. SYSTEM
By system we mean that all procedures, formal and informal, that make the
organization go, today by day and year by year. Capital budgeting system, training
system, cost accounting procedures budgeting system. If there is a variable in our
model that threatens to dominate the other, if could well be system do you want to
understand how an organization really does get things done? Look at the system
want to change an organization without disruptive restructurings? Try to change
the system.
If a manufacturing or production company is trying to come up with an over
all corporate strategy. Textbook portfolio theory seemed to apply: find a good way
to segment the business, decide which segment in the total business portfolio is
most attractive, and most heavily in those. The only catch: reliable cost data by
segment where not to be had. The company’s management information system was
not adequate to support segmentation.
Electronic Data Processing System
There is an electronic data processing system which stores all kind of
information which is required by the organization in doing its business
.Information regarding customers’ information regarding production, information
regarding payment done by the customers, information regarding performance of
the organization, financial information regarding its employees etc.

8. Human Resource Information System
There is an HR package which stores all employee profile such as employee
ID, code number, joining date, place of posting, name, personal profile,
designation, experience, pay scale and history.
On the basis of this data rating is done. It also gives information of overall
employee structure like number of persons joined in a month, transfer, promoted,
loan taken category, etc.