McKinsey 7-S Strategy Model

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McKinsey 7-S Model
Seven Elements of Organizational
Effectiveness
April 15, 2013
The McKinsey 7-S Model is a business framework used to evaluate organizational
effectiveness and alignment. It identifies 7 internal, interrelated organizational
elements: Shared Vision, Strategy, Structure, Systems, Style, Staff, and Skills. This
document explains the framework and includes PowerPoint templates to be used for
your own presentations and analysis.
ORIGINAL PROJECT DETAILS
http://pptlab.com/ppt/McKinsey-7S-Strategy-Model-28

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Contents
 Overview 4
 7S Deep Dives 11
 Templates 19

The McKinsey 7-S Model is a framework used to evaluate organizational
effectiveness and alignment
Executive Summary
The McKinsey 7-S Model is a business framework
used to evaluate organizational effectiveness. The
basic premise of the model is that there are seven
internal, interrelated aspects of an organization that
need to be aligned for the organization to be
successful.
This framework can be used to understand our
organization and leverage it to maximize efficiency
and profitability. It can also be used in situations
where an alignment perspective is useful. The
scope of these situations doesn’t matter—for
instance, it can be applied to elements of a project
or of a team.
The 7-S Model was developed by two McKinsey
consultants, Tom Peters and Robert Waterman.
• Strategy
• Structure
• Systems
• Shared Values
•Style
•Staff
•Skills
1
2
3
4
5
6
7
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values

This diagram is the typical presentation of the McKinsey 7-S Model
7-S Model Diagram
We must act on all S’s in parallel—as all S’s are interrelated and must align equally.
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values

1
These seven elements are categorized into so-called Hard S’s and Soft S’s
Hard vs. Soft Elements
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
HARD ELEMENTS
• Hard elements are Strategy, Structure, Systems
• They are feasible and easily identified
• These elements are also easier to change than
soft elements
• They can be found in strategy statements,
corporate plans, organizational charts, and
other business documents
SOFT ELEMENTS
• Soft elements are Shared Values, Skills, Staff,
and Style
• These are harder to change directly and usually
take longer to change
• They are harder to describe, since capabilities,
values, and elements of corporate culture and
continually evolving
• These elements are highly determined by the
employees of the organization
HARD ELEMENTS
SOFT ELEMENTS

Contents
 Overview
 7S Deep Dives
 Templates

McKinsey 7 S’s Model
Strategy
Second S – Strategy
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Strategy is the plan devised to maintain and build competitive advantage over the competition.
KEY QUESTIONS
 What is our corporate strategy?
 How do we intend to achieve our objectives?
 How do we deal with competitive pressures?

How are changes in customer demands dealt
with?

How is strategy adjusted for environmental
and regulatory issues?

When was the last time we looked at our
business plan?

When was the last time we updated our
business plan?

How do we deliver greater value to
customers?

What are the sources to sustainable
customer advantage?

Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Systems is the daily activities and procedures that staff members engage in to get the job done—
having systems helps reduce redundancies and streamlines processes.
KEY QUESTIONS

What are the main systems that run the
organization?

Where are the controls and how are they
monitored and evaluated?

What internal rules and processes does the
team use to keep on track?

Is there contingency in place in case critical
staff leaves or become unavailable?
In addition to ERP, Financial/Accounting, HR, Supply
Chain systems, also consider communications and
document storage/management
Systems
Fourth S – Systems

Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Staff is the employees, their general capabilities, and their management process.
KEY QUESTIONS

What positions or specializations are
represented within the team?
 What positions need to be filled?

Are there gaps in required core
competencies?

Will the addition or removal of one of two
employees change anything?
 How do we train and mentor employees?
 Are our training methods effective?

Are we adequately staffed to serve our
customers?

What—if anything—is holding our employees
back from performing better?
Staff
Sixth S – Staff

Contents
 Overview
 7S Deep Dives
 Templates

Insert Header
7-S Model (TEMPLATE)
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
Hard S
Soft S

Insert Header
7-S Model (TEMPLATE ALTERNATE)
SHARED
VALUES
STRATEGY
STRUCTURE
SYSTEM
• Filler text filler text filler text filler text
filler text filler text
ELEMENT ASSESSMENT
STYLE
STAFF
SKILLS

Insert Header
7-S Model – Current State (TEMPLATE)
Shared
Values
Strategy Structure Systems Style Staff Skills
Shared
Values
Strategy
Structure
Systems
Style
Staff
Skills
Source: MindTools, 7S Worksheet, http://www.mindtools.com/pages/article/worksheets/7SDownload.htm

McKinsey 7-S Strategy Model

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McKinsey 7-S Strategy Model