Published by: Tamer Elogueil

Introduction

The Mckinsey 7S Framework is a management model developed in the 1980s by McKinsey consultants; Tom Peters, Robert Waterman Jr., and Julien Philips with the help of Richard Pascale and Anthony Athos.

The McKinsey 7S Framework is a management model developed in the 1980s by McKinsey consultants; Tom Peters, Robert Waterman Jr., and Julien Philips with the help of Richard Pascale and Anthony Athos. It was popularised in their book “In Search of Excellence”.

Jr and Tom Peters in this framework provides a holistic view of an organisational internal dynamics. The 7S framework is management model that examines an organisational design by considering seven internal elements. These elements interact with each other and collectively influence an organisation’s ability to change and achieve objectives.

Usages and Application:

Analysis and Diagnosis: Organisations use the 7-S Framework to diagnose their current state to improve organisational excellence. By assessing each element, they identify strengths, weaknesses, and areas for improvement.

Alignment: It monitors changes in the internal elements of an organisation (strategy, structure, values, style, and staff) to identify what needs to be effectively aligned to improve performance and allow the organisation to achieve its objectives. Leaders need to align the seven elements to ensure consistency. For example, if the strategy changes, they must adjust structure, systems, and skills accordingly.

Change Initiatives: When implementing changes (such as mergers, restructuring, new systems, leadership change or cultural shifts), the framework helps leaders anticipate challenges and plan interventions. The framework can be used to understand how the organisational elements or solutions across the organisation are interrelated.

Performance Improvement: By optimising the seven elements, organisations enhance overall performance and adaptability.

The McKinsey framework specifies seven factors that can be classified as “hard” or “soft” elements.

Hard elements are easily identified and influenced by management, while soft elements are fuzzier, more intangible and influenced by corporate culture. The framework was called “7S” referring to the seven elements or factors that start with the letter “S” which are; Strategy, Structure, Style, Shared Values, Staff and Skills. To understand the 7S Framework better, a brief illustration can be found below.

These seven elements are interconnected and need to be aligned for the organisation to function effectively. The 7S Framework can be used as a diagnostic tool to assess where an organisation stands and to identify areas necessary for improvement or change.

The 7S Mckinsey Framework

Strategy

This refers to the organisation’s overall plan for achieving its goals. It includes the direction, goals, and competitive positioning. The strategic plan often devised by the organisation to sustain and build a competitive advantage over the competitors in the market. Overall, an effective strategy clearly articulates a competitive advantage and must be reinforced by a clear vision, mission, and values.

Structure

The organisational structure, including reporting lines, clear roles, and responsibilities. It often stands for the way the organisation is structured in terms of business divisions and units, this includes its current chain of command, information of who is accountable for what and reporting to whom. This structure outlines how the operations function and interconnect. This is one of the most visible and easy steps that can used to create quick changes in the other elements of the framework.

Systems

This includes day-to-day activities, procedures, processes, workflow, and tools used in the company that the staff members engage in to get the job done. It is the area, the organisation that determines how the business is done and should be the core focus for managers during organisational change.

Shared Values

Also, was known as “superordinate goals”. It is the core of the McKinsey 7S model. These are the core values, believes, culture and norms that guide the behaviour within the organisation. It is evidenced in the corporate culture and the general work ethic. In other words, it is the norms and standards that guide employee’s behaviour and company actions. This is the foundation of every organisation.

Style

This defines the adopted leadership styles. It represents the way the organisation or the corporate is managed by top-level managers. It includes what management style do ELT & SLT adapt, how they interact with their subordinates, cascade down the actions and activities and what actions do they take and their symbolic value. How do leaders communicate changes, involve business units and managers in the discussion making process?

Staff

The include that general people of the organisation and everything related them. An organisation needs to clearly understand the manpower size, workforce demography, the currents skills, and competencies against the future needs, and how people in the organisation align with the strategy and culture. The organisation needs to set the talent acquisition strategy and recruitment plans. Define employees’ development, HiPos and successors. Examine the effectiveness of the current compensation, rewards, benefits, and measure the current levels of engagement.

Skills

The current actual capabilities, and competencies of the employees to perform at high levels at the workplace. It is necessary during the organisational change planning to identify the skills and competencies that the organisation will need to reinforce in its new strategy, and have a clear plan how you are going to introduce and develop those skills to the current workforce.

The 7S Mckinsey model can work well with different types of business in all sectors and sizes. Despite saying that, it is best applied in medium and large businesses.

One of the framework advantages is that the elements are self-explanatory and simple to apply. You need to remember that you need to manage the hard and soft elements separately;

Hard elements: Strategy, Structure and Systems.

Soft elements: Style, Skills, Staff and Shared Values.