MCKINSEY

S 7S
FRAMEWOR
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1. Introduction
McKinsey introduced the 7-S framework for
strategy in the late 1970s, The framework maps
seven interrelated factors that influence an
organizations ability to changeshared values,
skills, staff, strategy, structure, style, and
systemsand shows how these forces interact.
Unlike Porters Framework, 7-S Framework
emphasizes coordination more strongly; It
suggests that they can make significant progress
in any of their parts only if they progress in the
others. The interrelations between these
elements are equally important compared to the
elements themselves. They all work together.

1. Introduction
The 7-S Framework helps organizations to
perform their self assessment. Its like
holding up a mirror and that enables each
organization to find their blind spots.
Thus, 7-S Framework acts as an excellent
tool to help diagnose existing problem.
Since it was proposed in 1970s, in todays
rapidly changing business world.

2. MCKINSEYS 7S
FRAMEWORK

MCKINSEYS 7S
FRAMEWORK
Style: Its Organizations Culture.

Understanding your corporate culture in the

context of national culture and how that
aids or acts as a barrier for growth has
become more important because of
globalization. A whole new field Cultural
Intelligence has been evolving lately to
address style in the era of globalization.
Structure: This is about authority and
relationship between the executives and the
individual contributors. Globalization and
rise of Social Media (aka Web 2.0) is
challenging the existing structure.

MCKINSEYS 7S
FRAMEWORK
Skills: These are both institutional and individual
skills relevant for the organizations growth.
Globalization has made skill acquisition strategies
and Outsourcing strategies a high priority.
System: These are Business Processes (how work
is done) within the organization. Identifying core
business processes is more relevant today as
organizations can focus on it while outsourcing
contextual business processes.
Staf: These are people within the organization.
The focus lately is on Diversity and ability to
achieve Economies of Scope leveraging
diversity.

MCKINSEYS 7S
FRAMEWORK
Strategy: All the activities the
organization does to gain competitive
advantage. Due to globalization and
hyper competition, strategy is not static
anymore. Now, when the growth in the
competitive landscape has become
unpredictable, the trick is to figure out
how to evolve an organization around
strategy when strategy itself keeps
evolving.

MCKINSEYS 7S
FRAMEWORK
Shared Value: This is Social mission or the
super ordinate goals the company is
pursuing. Today, no global organization
can get away without addressing
sustainability issue. Embedding social
mission into the organizations brand has
become vitally important. Marketing
department within the organization is
now challenged to create an enduring
brand that cannot be tainted by
environmental, social and human rights.

3. MCKINSEYS 7S
FRAMEWORK

MCKINSEYS 7S
FRAMEWORK
Most of us grew up learning about 'the 4Ps'

of the marketing mix: product, price, place,

promotion. This model still works when the
focus is on product marketing. However most
developed economies have moved on, with
an ever-increasing focus on service
businesses, & therefore service
marketing.
To better represent the challenges of service
marketing, McKinsey developed a new
framework for analyzing & improving
organizational effectiveness, i.e. 7S model
that is as follows: -

MCKINSEYS 7S
FRAMEWORK
The 3Ss across the top of the model are
described as 'Hard Ss:
- Strategy: The direction and scope of the
company over the long term.
- Structure: The basic organization of the
company, its departments, reporting lines, areas
of expertise, and responsibility (and how they
inter-relate).
- Systems: Formal and informal procedures that
govern everyday activity, covering everything
from management information systems, through
to the systems at the point of contact with the
customer (retail systems, call centre systems,
online systems)

MCKINSEYS 7S
FRAMEWORK
The 4Ss across the bottom of the model are less
tangible, more cultural in nature, and were
termed 'Soft Ss' by McKinsey:
- Skills: The capabilities and competencies that
exist within the company. What it does best.
- Shared values: The values and beliefs of the
company. Ultimately they guide employees
towards 'valued' behavior.
- Staff: The company's people resources and
how they are developed, trained, and motivated.
- Style: The leadership approach of top
management & company's overall operating
way.

4. To Sum Up
Thus to sum up, In combination they
provide another effective framework for
analyzing the organization and its
activities. In a marketing-led company
they can be used to explore the extent to
which the company is working coherently
towards a distinctive and motivating
place in the mind of consumer.