McKinsey 7s

1.
BACKGROUND
Developed around 1978, the 7-S framework first appeared in a book called The
Art of Japanese Management by Richard Pascale and Anthony Athos, and also
featured in In Search of Excellence by Thomas Peters and Robert Waterman.
McKinsey has adopted the 7-S model as one of its basic analysis tools.
2. BENEFITS OF THE 7-S FRAMEWORK
The 7-S framework is a useful diagnostic tool for understanding the inner
workings of an organisation. It can be used to identify an organisations
strengths and sources of competitive advantage, or to identify the reasons why
an organisation is not operating effectively. As such, the 7-S framework is an
important analysis framework for mangers, consultants, business analysts and
potential investors to understand.
The 7-S framework provides a guide for organisational change. The framework
maps a group of interrelated factors, all of which influence an organisation’s
ability to change. The interconnectedness among each of the seven factors
suggest that significant progress in one area will be difficult without working on
the others. The implication of this is that, if management wants to successfully
establish change within an organisation, they must work on all of the factors,
and not just one or two.
3. MCKINSEY’S 7-S FRAMWORK EXPLAINED
The 7-S framework describes seven factors which together determine the way in
which an organisation operates. The seven factors are interrelated and, as such,
form a system that might be thought to preserve an organisation’s competitive
advantage. The logic is that competitors may be able to copy any one of the
factors, but will find it very difficult to copy the complex web of interrelationships
between them.
1. Shared values (also called Superordinate Goals) refer to what an

organisation stands for and believes in. This includes things like the long
term vision of the organisations, its charitable ideals, or its core guiding
principles. For example, the core guiding principle at McKinsey is
professionalism.
2. Staff refers to the number and type of people employed by the
organisation.
3. Skills refers to the learned capabilities of staff within the organisation.
4. Style refers to the way things are done within the organisation, that is,
the work culture.
5. Strategy refers to the plans an organisation has for the allocation of its
resources to achieve specific goals.
6. Structure refers to the way in which an organisation’s business units
relate to each other. For example, a company may use a centralised
system where all key decisions are made at the head office.
7. Systems are the practices and procedures that an organisation uses to
get things done, e.g. financial systems, information systems, recruitment
and performance review systems, etc.
The model is based on the theory that, for an organization to perform well, these seven elements need
to be aligned and mutually reinforcing. So, the model can be used to help identify what needs to be
realigned to improve performance, or to maintain alignment (and performance) during other types of
change.
Whatever the type of change - restructuring, new processes, organizational merger, new systems,
change of leadership, and so on - the model can be used to understand how the organizational
elements are interrelated, and so ensure that the wider impact of changes made in one area is taken
into consideration.
You can use the 7S model to help analyze the current situation (Point A), a proposed future situation
(Point B) and to identify gaps and inconsistencies between them. It's then a question of adjusting and
tuning the elements of the 7S model to ensure that your organization works effectively and well once
you reach the desired endpoint.
The McKinsey 7Ss model is one that can be applied to almost any organizational or team
effectiveness issue. If something within your organization or team isn't working, chances are there is
inconsistency between some of the elements identified by this classic model. Once these
inconsistencies are revealed, you can work to align the internal elements to make sure they are all
contributing to the shared goals and values.
The process of analyzing where you are right now in terms of these elements is worthwhile in and of
itself. But by taking this analysis to the next level and determining the ultimate state for each of the
factors, you can really move your organization or team forward.
STRENGTHS OF THE 7-S MODEL. BENEFITS

 Diagnostic tool for understanding organizations that are ineffective.
 Guides organizational change.
 Combines rational and hard elements with emotional and soft elements.
 Managers must act on all Ss in parallel and all Ss are interrelated.
The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for
example to help you:
 Improve the performance of a company;

 Examine the likely effects of future changes within a company;
 Align departments and processes during a merger or acquisition; or
 Determine how best to implement a proposed strategy.

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1.

1. Shared values (also called Superordinate Goals) refer to what an

STRENGTHS OF THE 7-S MODEL. BENEFITS

 Improve the performance of a company;

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