ORGANIZATIONAL ALIGNMENT: THE 7-S MODE

INTRODUCTION

Tool for analysis and action.

Developed McKinsey&Co. consultants , Harvard
Business School and Stanford Business School
professors.

7-S FRAMEWORK

1. STRATEGY

Ways to achieve competitive advantage.

Examples.
Low-cost

strategy through economic production or

delivery
Product differentiation through distinct features or
innovative sales.

2. STRUCTURE

Ways in which task and people are specialized

and divided, and authority is distributed.
Four main structures
Functional

Structure
Divisional Structure
Matrix Structure
Network Structure

Functional Structure

Divisional Structure

GM

Matrix Structure

Network Structure

3. SYSTEMS

Formal processes and procedures to manage the

organization.
Examples:

Performance

Measurements
Reward Systems
Planning
Budgeting
Resource Allocation
Information System
Distribution System

10

4. STAFFING

People, their background and competencies.

Organizations approach to recruitment,
selection, socialization, training and employee
development.

11

5. SKILLS

Distinctive competencies in the organization.

Can be of People, Management Practices,
Systems and/or Technologies.

12

6. STYLE

Leadership style of top management and overall

operating style of organization.
Impacts norms followed by people, how they work
and interact with each other and customers.

13

7. SHARED VALUES

Core values shared in the organization and serve

as guiding principles of what is important.
Helps focus attention and provides a broader
sense of purpose.

14

USING THE 7-S MODEL

Each S is consistent with and reinforces the other
Ss.
Recognize the full range of elements that need to
be changed and focus on the ones that will have
the greatest effects.
All seven variables are interconnected- to make
progress in one, adjustments need to be made in
others also.
No natural starting point for a change it is
decided by diagnosis of the alignment of the
organization.

15

USING THE 7-S MODEL

Hard Ss (Easier to change)

Strategy

Structure
Systems

&

Softer Ss (Harder to change directly and take

longer)
Staffing
Skills
Style

&
Shared Values
16

Thank You

17