The McKinsey 7S model breaks down an organization into 7 key factors that influence its ability to implement strategy: strategies, structure, systems, shared values, style, staff, and skills. These factors are interdependent and can be categorized as either "hard" elements like strategies, structure and systems that are easier to change, or "soft" elements like shared values, style, staff and skills that are more difficult to change directly and take longer. The model provides a framework for analyzing how well an organization's strategic elements align and identifies areas for improvement.
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
3.
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 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?
6. 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?
7. 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
8. 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?
9. 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?
10. 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?
11. 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?
12. 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.