Mckinsey’s 7s

Framework
History…
 Itwas first mentioned in "The Art Of
Japanese Management" by Richard
Pascale & Anthony Athos in 1981.
 At around the same time, Tom Peters &
Robert Waterman were exploring what
made a company excellent. The 7 S
model was born at a meeting of these
four authors in 1978.
 Itwas taken up as a basic tool by the
global management consultancy
company McKinsey.
What is the 7-S Framework?
 It is a management model that describes 7
factors to organize a company in an holistic
and effective way.
 Together these factors determine the way
in which a corporation operates. Managers
should take into account all seven of these
factors, to be sure of successful implementation
of a strategy. Large or small.
 They're all interdependent, so if you fail to
pay proper attention to one of them, this may
effect all others as well. On top of that, the
relative importance of each factor may vary
over time.
McKinsey 7s Model
 The Seven Elements
Hard Elements Soft Elements
 Shared Values
 Strategy
 Skills

 Structure  Style
 Staff
 Systems
 Elements
Description
 Strategy: It is the plan or course of
action in allocating resources to
achieve identified goals over time.
 Structure:The way people & work/
tasks are organized.
 Systems: All the processes &
information flows that links the
organization togather.
 Elements

Description
Shared Values: These are the core values of
the company that are evidenced in the
corporate culture & the general work ethic.
 Style: The way the managers behave.
 Staff: The employees & their general
capabilities.
 Skills: The actual skills & competencies of the
employees working for the company.
 Benefits of the
Model
 Improves the performance of a
company.
 Examines the likely effects of future
changes within a company.
 Align departments & processes
during a merger or acquisition.
 Determines how best to implement a
proposed strategy.
How to use the
model?
To understand how the organizational
elements are interrelated, & to ensure that
the wider impact of changes made in one
area is taken into consideration.
 To help identify what needs to be realigned
to improve performance, or to maintain
alignment (and performance) during other
types of change.
 How to use the
model?
To identify gaps &
inconsistencies between the
current position & the future
position of the company.
 Drawbacks
 Theexternal environment is not
mentioned in the McKinsey 7S
Framework, although the other
variables do exist & that only the most
crucial variables are depicted in the
model.
 Thenotion of performance or
effectiveness is not made explicit in the
model.
 Key Points . . .
 The McKinsey 7Ss model is one that
can be applied to almost any
organizational or team effectiveness
issue.
 Inconsistency between some of the
elements can be identified by this
classic model.
Conclusion
The McKinsey 7S model can be
applied to elements of a team or
a project as well. The alignment
issues apply, regardless of how
you decide to define the scope of
the areas you study.
THANK YOU