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McKinsey 7S Model
McKinsey 7S Model
• Model developed by business Robert H.
Waterman, Jr. and Tom Peters in 1980
• It consist of 7 factors which determines the way
in which corporation operates
• Larger or small, these all strategies are
interdependent, on each other
7s Elements
Hard Elements (easier to change)
Strategies
 Structure
 Systems
Soft Elements ( harder to change directly and take
longer)
 Staffing
 Skill
 Style
 Shared Values
Strategies
This is the organization’s alignment of resources
and capabilities to “win” in its market.
• What is the organization’s strategy seeking to
accomplish?
• How does the organization plan to use its resources and
capabilities ?
• What is distinct about this organization?
• How does the organization compete?
• How does the organization adapt to changing market
conditions?
Structure
This describes how the organization is organized.
Example: roles, responsibilities and accountability
relationships
• How is the organization organized?
• What are the reporting and working relationships
(hierarchical, flat, etc.)?
• How do the employees align themselves to the strategy?
• How are decisions made? Is it based off of
centralization, empowerment, decentralization or other
approaches?
• How is information shared (formal and informal channels)
across the organization?
Systems
This is the business and technical infrastructure
that employees use on a day to day basis to
accomplish their aims and goals.
• What are the primary business and technical systems
that drive the organization?
• What and where are the system controls?
• Formal process like Performance management, reward
system, planning, budgeting, information and
distribution system
Shared Value
It is a set of traits, behaviors, and characteristics
that the organization believes in. This would
include the organization’s mission and vision.
• What is the mission of the organization?
• What is the vision to get there? If so, what is it?
• How do the values play out in daily life?
• What are the founding values that the organization was
built upon?
Style
This is the behavioral elements the organizational
leadership uses and culture of interaction.
• What is the management/leadership style like? How do
they behave?
• How do employees respond to management/leadership?
• What behaviors, tasks and deliverables does
management/leadership reward?
Staff
This is the employee base, staffing plans and
talent management.
• What is the size of the organization?
• What are the staffing needs?
• Are there gaps in required capabilities or
resources?
• What is the plan to address those needs?
Skills
This is the ability to do the organization’s work. It
reflects in the performance of the organization
• What skills are used to deliver the core products
and/or services? Are these skills sufficiently present
and available?
• Are there any skill gaps?
• What is the organization known for doing well?
• Do the employees have the right capabilities to do
their jobs?
• How are skills monitored, assessed, and improved?
Conclusion
The uses of the model can be as a static picture
to determine how effectively the organization is
implementing its strategy. It can be used for
comparing the current and future states, gaps
can be assessed, which lead to improvement and
action plans.
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Mc kinsey 7s model

  • 1.
  • 2.
    McKinsey 7S Model •Model developed by business Robert H. Waterman, Jr. and Tom Peters in 1980 • It consist of 7 factors which determines the way in which corporation operates • Larger or small, these all strategies are interdependent, on each other
  • 4.
    7s Elements Hard Elements(easier to change) Strategies  Structure  Systems Soft Elements ( harder to change directly and take longer)  Staffing  Skill  Style  Shared Values
  • 5.
    Strategies This is theorganization’s alignment of resources and capabilities to “win” in its market. • What is the organization’s strategy seeking to accomplish? • How does the organization plan to use its resources and capabilities ? • What is distinct about this organization? • How does the organization compete? • How does the organization adapt to changing market conditions?
  • 6.
    Structure This describes howthe organization is organized. Example: roles, responsibilities and accountability relationships • How is the organization organized? • What are the reporting and working relationships (hierarchical, flat, etc.)? • How do the employees align themselves to the strategy? • How are decisions made? Is it based off of centralization, empowerment, decentralization or other approaches? • How is information shared (formal and informal channels) across the organization?
  • 7.
    Systems This is thebusiness and technical infrastructure that employees use on a day to day basis to accomplish their aims and goals. • What are the primary business and technical systems that drive the organization? • What and where are the system controls? • Formal process like Performance management, reward system, planning, budgeting, information and distribution system
  • 8.
    Shared Value It isa set of traits, behaviors, and characteristics that the organization believes in. This would include the organization’s mission and vision. • What is the mission of the organization? • What is the vision to get there? If so, what is it? • How do the values play out in daily life? • What are the founding values that the organization was built upon?
  • 9.
    Style This is thebehavioral elements the organizational leadership uses and culture of interaction. • What is the management/leadership style like? How do they behave? • How do employees respond to management/leadership? • What behaviors, tasks and deliverables does management/leadership reward?
  • 10.
    Staff This is theemployee base, staffing plans and talent management. • What is the size of the organization? • What are the staffing needs? • Are there gaps in required capabilities or resources? • What is the plan to address those needs?
  • 11.
    Skills This is theability to do the organization’s work. It reflects in the performance of the organization • What skills are used to deliver the core products and/or services? Are these skills sufficiently present and available? • Are there any skill gaps? • What is the organization known for doing well? • Do the employees have the right capabilities to do their jobs? • How are skills monitored, assessed, and improved?
  • 12.
    Conclusion The uses ofthe model can be as a static picture to determine how effectively the organization is implementing its strategy. It can be used for comparing the current and future states, gaps can be assessed, which lead to improvement and action plans.
  • 13.