McKinsey 7S Framework or Model is used for analyzing management activities of the business and making them as effective as possible for achieving success.
McKinsey 7S Framework provides a structure which considers the company as a whole so that the organization’s problems may be identified, analyzed and a strategy may be developed and implemented for tackling it.
Consultants at McKinsey & Company developed the 7S Framework or model in the late 1970s to aid managers in addressing difficulties of change in the organization. It was developed and also used during the research work of two bestselling books “The art of Japanese Management” and “In Search of Excellence”.
The most outstanding fact about the McKinsey 7S Framework is that McKinsey consultants tested extensively in their studies of many companies. Also, At the same time, respected business schools used this framework.
Perhaps the most surprising element about the 7-S model is that it supports and is similar in nature of the managerial functions such as planning, organizing, staffing, leading and controlling.
The Seven Elements of McKinsey 7S Framework
So the seven elements of McKinsey 7S Framework can be categorized in as hard and soft elements. Hard Elements are Easier for management to identify and influence them. They are more tangible. Soft Elements are Difficult for management to identify and influence them; also Intangible and influenced by culture.
- Shared Values,
- Style, and
“Strategy” is formulated plans for the organization to reach identified goals.
The hierarchical setting or an organizational structure where and authority and responsibility, relationships are well-defined.
“System’s” refers to the procedures and processes that staff members engage in such as information systems, manufacturing processes, budgeting and control processes; to get the job done.
“Staff” refers to the number and types of employees within the organization.
“Shared Values” is the joining center of McKinsey’s model. It refers to the values the members of the organization shares.
“Skills” refer to the distinctive capabilities of personnel.
As you see, The McKinsey 7S Framework shows the multiplicity interconnected of elements that define an organization’s ability to change. It changed manager’s thinking of how companies could be improved. There is no hierarchical chain in the different factors of McKinsey 7S Framework.
Notice that the “Shared Values” is placed in the middle of the Framework or model. It highlights that values are central to the development of all the other critical elements of the McKinsey 7S Framework.
Entrepreneurs always form the original organization vision. As the values change in an organization, so do all the other elements in it.