The McKinsey 7-S model is a framework for understanding how an organization operates. It identifies 7 internal elements - strategy, structure, systems, shared values, style, staff, and skills - that influence organizational effectiveness. These elements are interdependent and can be classified as "hard" (strategy, structure, systems) which are more tangible, or "soft" (shared values, style, staff, skills) which are less tangible. The model aims to show how changes in one element can impact the others and examines the fit between the elements. It provides a checklist to assess an organization's readiness for change and identify strengths and weaknesses.

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