Mckinsey 7's model is required today in each business to bring any change in the organisation and according to Mckinsey there are 7 S important for the organisation i.e. structure, system, style, strategy , skills , shared values and staff.

1. Mckinsey 7s model..

2. SHORT REVIEW OF MCKINSEY 7S
FRAMEWORK !
https://youtu.be/ocxj0VMJgMI

3. Origin of 7s framework…
 It was first mentioned in “The Art of Japanese Management” by Richard
Pascale and Anthony Athos in 1981.They have been investigating how
Japanese industry has been so successful.
 At around the same time that Tom Peters and Robert Waterman were
exploring what made a company excellent by taken up a basic tool by
global management consultancy company McKinsey.
 The 7s model was born at a meeting of these 4 authors.

5. Mckinsey 7s model…
 The McKinsey model is a tool that analyses firm’s
organizational design by looking 7 elements in order to
identify if they are effectively aligned and allow
organization to achieve its objectives.
 Tool to assess and monitor changes in the internal
situation of an organization.

6. USES OF FRAMEWORK:
To implement new strategies.
To identify effects of future changes within a company.
To facilitate organizational change.
To understand how these elements are inter-related.
To identify what needs to be realigned to improve performance
of the organization.

7. THE 7S ELEMENTS…
HARD
ELEMENTS
Strategy
Structure
System
SOFT
ELEMENTS
Skills
Style
Shared Values
Staff

8. HARD ELEMENTS:
They are easy to define and identify.
Management can directly influence them.
These are the strategy statements,organizational chart and
reporting lines.
SOFT ELEMENTS:
Harder to describe and identify.
More influenced by culture.
As important as hard elements to run a successful business.

9. 1. STRUCTURE
 Ways in which task and people are specialized and divided and authority is
distributed i.e. who is accountable to whom in the organization.
 It is the organizational chart of the firm.
 One of the most visible and easily changeable element of the framework.
 Main structures are:
• Functional based
• Divisional based
• Team based
• Project based

11. 2. STRATEGY
 Blueprint or the actions which gives direction to mangers to achieve the
organizational goals.
 Determine how company will beat its competitors and achieve its targets.
 Bridges a gap between where we are and where we want to be in future
 Various strategies are there which a company may opt according to its
needs like :
• Market penetration
• Product development
• Market development
• Diversification

13. 3. SYSTEM
 Systems are the resources and procedures that people use to perform their
tasks.
 Formal and informal processes and procedures are followed to manage the
organization.
 Ensures that all employees are working in proper direction as per the
manager.
 Examples:
• Performance measurement system
• Reward system
• Resource allocation

15. 4. STYLE
 Represents the style of leadership adopted in the organization.
 Leadership of top management and overall operating style of organization.
 Impacts norms followed by people, how they work and interact with each other
and customers.
 Leadership styles like:
• Autocratic
• Democratic
• Laissez-faire

16. 5. STAFF
 Human resources and their competencies.
 Concerns with what type of and how many employees will be required by
the organization.
 It includes:
• Recruitment
• Selection
• Training and development
• Motivation

18. 6. SKILLS
 Distinctive competencies in the organization.
 Refers to those activities that an organization does best and for which
they are known.
 These concern both the skills of organization as well as those of the
employees.
 Organisation should provide training to improve the skills of the
employees.
 It includes:
• What skill does a company posses?
• What skills is the company lacking?

20. 7. SHARED VALUES
They are the norms and standards that guide employees behavior
and company's action.
Common values, guiding principles that unites the organization in
one direction,
Determines the way we work and the way in which problems are
solved in the organization.

22. WHY SHARED VALUES IN THE MIDDLE OF THE
MODEL?
Placing shared values in the middle emphasizes that these
values are central to the development of all the other critical
elements.
The company’s other 6s stem from why the organization
was originally created and what it stands for.
The original vision of the company was formed from the
values of the creators. As the values changes, so does all
the other elements.

23. McKINSEY 7S USED BY APPLE

24. Continued…

25. Structure :-