McKinsey 7s Model and How to Use it

McKinsey 7s Model is a tool designed for the purpose of examining the structural layout of a particular company. While considering 7 important internal components, namely strategy, structure, systems, shared values, style, staff and finally skills. These 7s are probably known as the McKinsey 7s Model in the business world.

The reason behind carrying out McKinsey 7s Model is to make sure that these all components are efficiently aligned together. Therefore making it possible for an organization to fulfill its goals.

McKinsey 7s Model History

The McKinsey 7s Framework was developed in the 1980s by two famous business consultants, namely Tom Peter and Robert H. Waterman with assistance from Richard Pascal and Anthony G. Athos. The tool has extensively been employed by academics and partitions since its beginning. However, it has been deemed to be one of the most well-known tools used for strategic planning. It attempts to place too much attention on human resources as an essential aspect to boost the organizational performance of firms.

The model’s ultimate objective is demonstrating the 7 internal elements, which can be aligned together to reach efficiency in an organization. Moreover, the model is based on the premise that all these seven elements are interwoven. Thus, any alteration to one element needs alteration to the rest of an organization so as to operate successfully and perform well.

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Usage

• To boost the productivity and performance of the company
• Help organizational change within a company
• To help put a proposed strategy into effect
• Assist in the combination of companies

The Seven Interconnected Elements

The McKinsey Model includes seven interconnected elements which fall into two categories, namely ‘hard’ and ‘soft’ elements. The model’s structure stresses the interdependence of the elements.

 Hard Elements

• Strategy
• Structure
• Systems

 Soft Elements 

• Shared Value
• Skills
• Style
• Staff

The hard elements include strategy, structure and systems, whereas the soft ones contain shared skills, values, style and staff. The hard elements of McKinsey 7s model are easy to define and are affected by management. Conversely, the soft elements, even though hard to manage, are less concrete and more affected by culture. However, the soft elements are as important as the hard elements if the organization wants to operate successfully and perform well. Now, let’s take up each element in turn as we proceed.

1. Strategy

   It is a detailed plan devised by a particular company for achieving success and maintaining a highly competitive advantage over the competition. Basically, a good strategy should be well-aligned and expressed. Although, it should assist in sustaining competitive advantage so as to be deemed good and effective. However, it is pretty hard to judge whether a certain strategy is well-aligned or not, especially when examined all by itself. Thus, the McKinsey 7S Model is not designed to look at its elements separately but to look whether they are aligned together or not. For instance, a short-term strategy is deemed a bad option for a certain organization. However, being aligned with the other six elements would probably yield the desired results.

2. Structure

   A structure refers to the way in which the parts of a particular company are arranged and organized and who is responsible to whom.

3. Systems

   These are the everyday activities and processes of the firm which the employees take part in to finish the job. The system should be the manager’s centerpiece throughout organizational switch.

4. Shared Values

   These are placed in the middle of the model to stress the fact that these values are essential for the evolution of all the other important elements. These shared values were referred to as superordinate goals when the model was first devised. They are the norms and standards which direct the staff members’ behavior as well as the firm’s actions. Thus, they are deemed to be the basis for every organization.

5. Skills

   These are the actual skills, abilities and competencies that staff members perform well.

6. Style

   This is the way in which the firm is administered by the peak executives. To put it bluntly, it is an embraced style of leadership.

7. Staff

   The people with general abilities who work for a particular company. This element takes notice of the kind and number of employees the firm will employ, the way with which they can be motivated and what kind of training they will receive.

How to Use McKinsey 7s?

You should always bear in mind that when it comes to organizational design and effectiveness, the McKinsey 7S Model comes in handy. The model is based on the premise that all these seven elements are interwoven and therefore should be aligned together to reach efficiency in an organization.

Thus, the model can be employed to assist in the recognition of what requires be rearranging and aligning to boost organizational performance. Also, to keep alignment throughout other kinds of changes including creating new processes and procedures, organizational combination, reorganization among many other things.

The model can be used to comprehend the way in which the organizational elements are interconnected. Although, making sure that the extensive influence of changes made in one aspect is taken into account.

Example

The model can also be used to assist in the analysis of present situations (Point A), a suggested upcoming situation (Point B) and to specify the differences and discrepancies between them.  Now it is just a matter of adapting and changing the element of the model. Just to make sure that your firm operates well and successfully as soon as you achieve the desirable results. Additionally, the model can be used to decide the most effective organizational design you want to reach. By determining the desirable alignment you establish your objectives and make the plan of your actions much easier.

It sounds simple but it is not because you need to carry out extensive research to figure out the ways. Such ways include other identical companies dealing successfully with organizational change along with finding out the kind of organizational design they are making use of.

In fact, there are plenty of books and methodologies devoted to the analysis of organizational strategy, performance improvement and management change. Last but not least, it goes without saying that the McKinsey 7S Model is a good tool which will assist you asking questions. However, it will not prove you with all the answers. For that reason, you are required to bring the appropriate knowledge together with the right skills and experience.