McKinsey 7-S Strategy Model

Crowdsourced Business
Presentation Design Service
McKinsey 7-S Model
Seven Elements of Organizational
Effectiveness
April 16, 2013
The McKinsey 7-S Model is a business framework used to evaluate organizational
effectiveness and alignment. It identifies 7 internal, interrelated organizational
elements: Shared Vision, Strategy, Structure, Systems, Style, Staff, and Skills. This
document explains the framework and includes PowerPoint templates to be used for
your own presentations and analysis.
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Contents
 Overview 4
 7S Deep Dives 11
 Templates 19

Contents
 Overview
 7S Deep Dives
 Templates

The McKinsey 7-S Model is a framework used to evaluate organizational
effectiveness and alignment
Executive Summary
The McKinsey 7-S Model is a business framework
used to evaluate organizational effectiveness. The
basic premise of the model is that there are seven
internal, interrelated aspects of an organization that
need to be aligned for the organization to be
successful.
This framework can be used to understand our
organization and leverage it to maximize efficiency
and profitability. It can also be used in situations
where an alignment perspective is useful. The
scope of these situations doesn’t matter—for
instance, it can be applied to elements of a project
or of a team.
The 7-S Model was developed by two McKinsey
consultants, Tom Peters and Robert Waterman.
• Strategy
• Structure
• Systems
• Shared Values
•Style
•Staff
•Skills
1
2
3
4
5
6
7
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
THIS IS A PARTIAL PREVIEW
You can download the full document at http://PPTLab.com.
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The 7-S Model can be applied to a wide variety of situations
Applicable Situations
 A diagnostic tool for an ineffective organization
 Improve the performance of a company
 Guides organizational changes
 Examine the likely impacts of future changes within an organization
 Align business units and processes during a merger of acquisition
 Determine how best to implement a proposed corporate strategy
 Combine rational and hard elements with emotional and soft elements

This diagram is the typical presentation of the McKinsey 7-S Model
7-S Model Diagram
We must act on all S’s in parallel—as all S’s are interrelated and must align equally.
Structure
Systems
Style
Staff
Skills
Strategy
Shared
ValuesTHIS IS A PARTIAL PREVIEW

Shared Values is centrally located, because all others elements stem and
evolve from it
7-S Model Diagram – Shared Values
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
• Placing Shared Values in the
middle of the model emphasizes
that these values are central to the
development of all other critical
elements
• The company's structure, strategy,
systems, style, staff and skills all
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
founders--as these Shared Values
evolve, so do all the other
elements

1
These seven elements are categorized into so-called Hard S’s and Soft S’s
Hard vs. Soft Elements
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
HARD ELEMENTS
• Hard elements are Strategy, Structure, Systems
• They are feasible and easily identified
• These elements are also easier to change than
soft elements
• They can be found in strategy statements,
corporate plans, organizational charts, and
other business documents
SOFT ELEMENTS
• Soft elements are Shared Values, Skills, Staff,
and Style
• These are harder to change directly and usually
take longer to change
• They are harder to describe, since capabilities,
values, and elements of corporate culture and
continually evolving
• These elements are highly determined by the
employees of the organization
HARD ELEMENTS
SOFT ELEMENTS

When conducting 7-S analysis, it’s best to use an iterative approach
starting with Shared Values, followed by hard S’s, and then soft S’s
Approach
Start with your Shared Values.
Are they consistent with your structure, strategy, and systems? If not, what needs to change?
Next, look at the hard elements.
How well does each one support the others? Identify where changes need to be made.
Then, evaluate the other soft elements.
Do they support the desired hard elements? Do they support one another? If not, what needs to change?
As you adjust and align the elements, you will need to use an iterative and typically time-consuming
process of making adjustments; and then reanalyzing how that impacts other elements and their
alignments.
1
2
3
4

Contents
 Overview
 7S Deep Dives
 Templates

Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Shared Values are the core values of the company that are evidenced in the corporate culture and
the general work ethic.
KEY QUESTIONS
 What are the core and stated values?
 What are these values intended to contribute
to our business?
 What is the corporate or team culture?
 How strong are our values?
 What are the fundamental values that the
organization or team was built on?
 What do we measure and reward?
 Do our KPIs, metrics, and rewards align with
our core values?
 Do our employees have a shared
understanding of why the company exists?
McKinsey 7 S’s Model
Shared Values
First S – Shared Values

Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Structure is the way the organization is structured and who reports to whom.
KEY QUESTIONS
 How is the organization or team divided?
 What is the hierarchy? Is it stated or in-
practice?
 How do various business units coordinate
activities?
 How do the individual team members
organize and align themselves?
 Is decision making and control centralized or
decentralized?
 Where are the lines of communication?
 Are the lines of communication implicit or
explicit?
Structure
Third S – Structure

Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Style is the style of leadership adopted and the organization’s overall operating approach.
KEY QUESTIONS
 How participative is the management and
leadership style?
 How effective is that leadership?
 How good is management in making
decisions?
 Where does management focus most of its
time and attention?
 Do employees/team members tend to be
more competitive or cooperative?

How would the following groups describe our
organization: yourself, employees,
competitors, customers, vendors?
If the 5 groups say different things, this is
a sign to evaluate further as there could
be a problem
Style
Fifth S – Style

Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Skills is the actual skills and competencies of the employees working for the company.
KEY QUESTIONS
 What are the strongest skills represented
within the company or team?
 Are there any skills gaps?
 What is the organization or team known for
doing well?
 Do the current employees have the ability to
perform their jobs?
 How are skills monitored and evaluated?
 What skills have we been hiring for?
 What skills do we need?
 What skills will we need in 1 to 2 years?
 What skills will we need in 2 years that we
don’t currently possess?
Skills
Seventh S – Skills

Contents
 Overview
 7S Deep Dives
 Templates

Insert Header
7-S Model (TEMPLATE)
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values

Insert Header
7-S Model (TEMPLATE)
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Hard S
Soft S

Insert Header
7-S Model (TEMPLATE ALTERNATE)
Structure
Systems
Style
Staff
Skills
Strategy
• Filler text filler text filler
text filler text
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text filler text
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text filler text filler text
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Shared
Values

Insert Header
SHARED
VALUES
STRATEGY
STRUCTURE
SYSTEM
• Filler text filler text filler text filler text
filler text filler text
ELEMENT ASSESSMENT
STYLE
STAFF
SKILLS

MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM
Insert Header
SYSTEMS
SHARED
VALUES
STAFFSTRATEGY SKILLSSTRUCTURE STYLE
• Filler text filler
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Hard S
Soft S
ELEMENT
ASSESSMENT
STATUS

Insert Header
7-S Model – Current State (TEMPLATE)
Shared
Values
Strategy Structure Systems Style Staff Skills
Shared
Values
Strategy
Structure
Systems
Style
Staff
Skills
Source: MindTools, 7S Worksheet, http://www.mindtools.com/pages/article/worksheets/7SDownload.htm

PPT Lab (www.pptlab.com) is the only crowdsourced
presentation design service. Get consulting-quality
presentations at a fraction of the cost!
Each month, we will create well over 50 slides of for our members.
As a member, you will drive what business slides we create by
submitting your own presentation projects to our team. All
presentations will be created by a team of management
consultants and follow the Consulting Presentation Framework.
www.PPTLab.com
support@pptlab.com

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