McKinsey 7S Framework
presentations
PRESENTATION
FRAMEWORK
To understand your organization's position and the elements that influence its
capability to carry through changes, use our McKinsey 7S presentation. With
this framework that's been around for 50 years, identify the weakest links in
your venture’s processes, improve performance, and maintain alignment with
maximum efficiency.
STRUCTURE
THE MCKINSEY 7S MODEL
The McKinsey 7S Framework is a management model
STRATEGY
SYSTEMS
developed by business consultants Robert H. Waterman, Jr.
and Tom Peters in the 1980s. This was a strategic vision for
groups, to include businesses, business units, and teams.
SHARED
VALUES
HARD ELEMENTS
STYLES
SKILLS
STAFF
SOFT ELEMENTS
•
Strategy
•
Shared Values
•
Structure
•
Skills
•
Systems
•
Style
•
Staff
THE MCKINSEY 7S MODEL
Strategy
Systems
Structure
Staff
Skills
Shared
Value
Style
MCKINSEY 7-S
ENSURES COMPANY IS
FRAMEWORK
ALIGNED TO ITS GOALS
Analyze impact of future
Enhancement of
organizational change
Comprehensive
framework
Links academic research with
management practice
organizational effectiveness
ADVANTAGES
OF 7S MODEL
Aligns organizational
departments & processes
Implementation
strategies
THE 7 INTERDEPENDENT ELEMENTS
Actions a company plans
Formal and informal
Process used to develop
Guiding concept around which a
in response to change in its
procedures that support
managers and ways to introduce
business is built – must be simple,
external environment
the strategy and structure
young recruits to the company
usually stated at abstract level
STRATEGY
STRUCTURE
SYSTEMS
STYLE
STAFF
SKILLS
Basis of specialization and coordination
Organizational Culture: The dominant values,
The distinctive competences –
influenced primarily by strategy, size,
beliefs & norms which develop over time.
what the company does best
and diversity of organization
Management Style: More a matter of what
managers do that what they say, how do
company managers spend their time.
SHARED VALUES
THE 7 INTERDEPENDENT ELEMENTS
Purpose of the
Hard Elements
Soft Elements
STRATEGY
business & the way
Division of activities;
the organization
integration and
seeks to enhance its
STRUCTURE
coordination
Formal procedures
SYSTEMS
mechanism
competitive
for measurement,
reward and resource
allocation
advantage
Explicit or implicit
Organization’s
The organization’s
fundamental beliefs,
SHARED
VALUE
concepts and
principles that
underlie the culture
of an organization
SKILLS
core competencies
and distinctive
capabilities
Typical behavior
human, resources,
STAFF
demographic,
educational and
attitudinal
characteristics
STYLE
patterns of key
groups, such as
managers, and
other professionals
What structure do we need
What should we do to solve the
to execute the strategy?
specific business problem?
do we need to develop?
SKILLS
that will help us? What skills
SHARED VALUE
Which of our principles help
us? Why do we do what we
SYSTEMS
What are the specific skills
What business system do
we need to use or invent
to execute the strategy?
do in the way we do it?
What leadership style and
How should we help our
managers in their growth?
cultural qualities will help us to
achieve a strategic objective?
THE MCKINSEY 7S MODEL
•
Style
Hard elements are feasible
•
and easily identified
•
•
take longer to change
These elements are also easier
to change than soft elements
Soft elements are harder and
•
Structure
They can be found in strategy
SHARED
z
VALUES
They are harder to describe,
since capabilities, values, and
Staff
elements of corporate culture
are continually evolving
statements, corporate plans,
organization charts, and other
•
business documents
Determined by employees of
the organization
Strategy
Skills
SOFT ELEMENTS
HARD ELEMENTS
Systems
QUESTIONS TO ASK (HARD ELEMENTS)
STRATEGY
STRUCTURE
What is our strategy?
How is the company/team divided?
How do we intend to achieve our objectives?
What is the hierarchy?
How do we deal with competitive pressure?
How do the various departments
How are changes in customer demands
dealt with?
How is strategy adjusted for environmental
issues?
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?
QUESTIONS TO ASK (SOFT ELEMENTS)
What positions or specializations
What are the strongest skills
How participative is the
are represented within the team?
represented within the
management/leadership style?
What positions need to be filled?
Are there gaps in required
competencies?
company/team?
Are there any skills gaps?
What is the corporate/team
How effective is that leadership?
culture?
Do employees/team members
How strong are the values?
What is the company/team
tend to be competitive or
known for doing well?
cooperative?
Do the current employees have
Are there real teams functioning
the capability to do the job?
within the organization or are they
How are skills monitored and
What are the core values?
What are the fundamental values
that the company was built on?
just nominal groups?
assessed?
STAFF
SKILLS
STYLE
SHARED VALUE
STRATEGY
STYLE
What should we do to solve the
What leadership style and
specific business problem?
cultural qualities will help us to
What structure do we need
to execute the strategy?
SHARED VALUES
Which of our principles help
us? Why do we do what we
SOFT S
STRUCTURE
HARD S
achieve a strategic objective?
STAFF
How should we help our
managers in their growth?
do in the way we do it?
SYSTEMS
SKILLS
What business system do we need to
What are the specific skills
use or invent to execute the strategy?
that will help us? What skills
do we need to develop?
• Employee = Human Resource
• How do we recruit?
7S ANALYSIS
• Technique and know-how
• What kind of technical knowhow do we have?
• Strategy
• What is an advantage?
HARD
ELEMENTS
• Corporate Philosophy
SOFT
ELEMENTS
• Vision and objectives
• Corporate Culture
• How do we think or act as a company
• Organizational Structure
• Department, team, etc.
• The system within the company
• How to communicate or report
SHARED VALUES
STYLE
Which of our principles help us? Why do
What leadership style and cultural qualities
we do what we do in the way we do it?
will help us to achieve a strategic objective?
STRATEGY
STAFF
What should we do to solve the
specific business problem?
How should we help our
MCKINSEY
managers in their growth?
7S MODEL
STRUCTURE
What structure do we need
to execute the strategy?
SKILLS
SYSTEMS
What business system do we need to
use or invent to execute the strategy?
What are the specific skills that will help
us? What skills do we need to develop?
MCKINSEY 7S MATRIX
Structure
Structure
Strategy
System
Shared Value
Staff
Style
Skills
Strategy
POSITIVE
System
Shared Value
Staff
NEUTRAL
Style
NEGATIVE
Skills
SKILLS
STRATEGY
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STRUCTURE
SYSTEMS
SHARED
VALUES
STYLE
STAFF
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STAFF
STYLE
SHARED
VALUES
SYSTEMS
STRUCTURE
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MCKINSEY 7S MATRIX
CASE STUDY EXAMPLE
Management style and corporate
Procedures in place to achieve business
SYSTEMS
outcomes (typically the daily activities)
culture, How staff is managed and
the impacts this has on productivity
Norms, principles, and
Corporate hierarchy & critical business
units, as well as key responsibilities
STYLE
STRUCTURE
for employees and teams
Plan to remain competitive. Strategy
needs to clearly show what the key
objectives and goals of the business are.
standards that are the
STAFF
‘company guidelines’ that
Recruitment, training and
development needs
all staff members follow
STRATEGY
Competencies and capabilities that can
SKILLS
be leveraged to determine if the client has
the skills needed to achieve future goals