The McKinsey 7S Framework
The McKinsey 7S Framework
The McKinsey 7S Framework
By the
Mind Tools
Editorial Team
Shared Values
Structure
Skills
Systems
Style
Staff
"Hard" elements are easier to define or identify and management can directly influence them:
These are strategy statements; organization charts and reporting lines; and formal processes
and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and
more influenced by culture. However, these soft elements are as important as the hard
elements if the organization is going to be successful.
The way the model is presented in Figure 1 below depicts the interdependency of the elements
and indicates how a change in one affects all the others.
competition.
Structure: the way the organization is structured and who reports to whom.
Systems: the daily activities and procedures that staff members engage in to get the job
done.
Shared Values: called "superordinate goals" when the model was first developed, these are
the core values of the company that are evidenced in the corporate culture and the general
work ethic.
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the employees working for the company.
Placing Shared Values in the middle of the model emphasizes that these values are central to
the development of all the 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 creators. As
the values change, so do all the other elements.
Also, the first version of this model, published in 1982, classified systems as soft. Since
1982, very many processes in very many organizations have been meticulously documented or
automated, making them relativelyeasy to analyze and change. They are therefore shown
above as hard.
of adjusting and tuning the elements of the 7-S model to ensure that your organization works
effectively and well once you reach the desired endpoint.
Sounds simple? Well, of course not: Changing your organization probably will not be simple at
all! Whole books and methodologies are dedicated to analyzing organizational strategy,
improving performance and managing change. The 7-S model is a good framework to help you
ask the right questions but it won't give you all the answers. For that you'll need to bring
together the right knowledge, skills and experience.
When it comes to asking the right questions, we've developed a Mind Tools checklist and a
matrix to keep track of how the seven elements align with each other. Supplement these with
your own questions, based on your organization's specific circumstances and accumulated
wisdom.
Strategy:
What is our strategy?
How do we intend to achieve our objectives?
How do we deal with competitive pressure?
How are changes in customer demands dealt with?
How is strategy adjusted for environmental issues?
Structure:
How is the company/team divided?
What is the hierarchy?
How do the various departments coordinate activities?
How do the team members organize and align themselves?
Is decision making and controlling centralized or decentralized? Is this as it should be, given
what we're doing?
Where are the lines of communication? Explicit and implicit?
Systems:
What are the main systems that run the organization? Consider financial and HR systems as
well as communications and document storage.
Where are the controls and how are they monitored and evaluated?
What internal rules and processes does the team use to keep on track?
Shared Values:
What are the core values?
What is the corporate/team culture?
How strong are the values?
What are the fundamental values that the company/team was built on?
Style:
How participative is the management/leadership style?
How effective is that leadership?
Do employees/team members tend to be competitive or cooperative?
Are there real teams functioning within the organization or are they just nominal groups?
Staff:
What positions or specializations are represented within the team?
What positions need to be filled?
Are there gaps in required competencies?
Skills:
What are the strongest skills represented within the company/team?
Are there any skills gaps?
What is the company/team known for doing well?
Do the current employees/team members have the ability to do the job?
How are skills monitored and assessed?
Tip:
For similar approaches to this, see our articles on the Burke-Litwin Change Model , and the
Congruence Model . You may also find our articles on the Change Curve , Impact Analysis
and Lewin's Change Management Model useful.
Key Points
The McKinsey 7-Smodel 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.
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