Mckinseys 7S Model

Presentation by: Nabendu Paul (M120006MS) Second Trimester(MBA Programme)

History
It was first mentioned in "The Art Of Japanese Management" by Richard Pascale & Anthony Athos in 1981.

At around the same time, Tom Peters & Robert Waterman were exploring what made a company excellent. The 7S model was born at a meeting of these four authors in 1978. It was taken up as a basic tool by the global management consultancy company McKinsey.

What is the 7-S Framework

It is a management model that describes 7 factors to organize a company in an holistic and effective way . Together these factors determine the way in which a corporation operates .

Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy.
They are all inter-dependent. The relative importance of each factor may vary over time.

The Seven Elements

Hard Elements
Strategy Structure Systems

Soft Elements
Shared values Skills Style Staff

Hard Elements
Strategy: It is the plan or course of action in allocating resources to achieve identified goals over time.

Structure: The way people & work/ tasks are organized. Systems: All the processes & information flows that links the organization togather.

Soft Elements
Shared Values: These are the core values of the company that are evidenced in the corporate culture & the general work ethic. Style: The way the managers behave. Staff: The capabilities. employees & their general

Skills: The actual skills & competencies of the employees working for the company.

Benefits of the Model

Improves the performance of a company. Examines the likely effects of future changes within a company. Align departments & processes during a merger or acquisition. Determines how best to implement a proposed strategy.

How to use the Model

To understand how the organizational elements are interrelated , & to ensure that the wider impact of changes made in one area is taken into consideration. To help identify what needs to be realigned to improve performance, or to maintain alignment (and performance) during other types of change. To identify gaps & inconsistencies between the current position & the future position of the company.

Drawbacks
The external environment is not mentioned in the McKinsey 7S Framework, although the other variables do exist & that only the most crucial variables are depicted in the model.
The notion of performance or effectiveness is not made explicit in the model.

Key Points
The McKinsey 7Ss model is one that can be applied to almost any organizational or team effectiveness issue.
Inconsistency between some of the elements can be identified by this classic model.

Conclusion
The McKinsey 7S model can be applied to elements of a team or a project as well. The alignment issues apply, regardless of how you decide to define the scope of the areas you study.

Thank you