7’S MCKINSEY

MODEL

1
 SCOPE

• Introduction
• Purpose of using 7’S McKinsey Framework in
change management in an organisation
• Hard elements of 7’S McKinsey Framework
• Soft elements of 7’S McKinsey Framework
• Conclusion

2
 INTRODUCTION
• First mentioned in "The Art Of Japanese Management"
by Richard Pascale & Anthony Athos in 1981
• Taken up as Organizational Analysis Tool by the global
management consultancy company McKinsey
• Monitor changes in the internal situation of the
organization
• It describes how one can holistically and effectively
organize a company. Together these factors determine
the way in which a corporation operates

3
MCKINSEY'S 7S FRAMEWORK

4
PURSPOSE OF 7’S MCKINSEY TOOL

IMPROVE

DETERMINE EXAMINE

ALIGN

5
 THE HARD SS & SOFT SS

HARD Ss SOFT Ss

 Strategy  Shared Values

 Structure  Skills

 System  Staff
 Style

6
 STRATEGY

 Plans or course of action for the allocation of a

firms scarce resources, over time, to reach
identified goals , eg. environment, competition,
customers
Searching Questions :
 What are our strategic objectives?

 Do we really understand our strategies?

 How can we compete? (niche, making ourselves be

more competitive)
 How to satisfy our customers/stakeholders ?

7
 STRUCTURE
 Organization’s structure, hierarchy and coordination,
including division and integration of tasks and activities
- centralized;
- functional divisions (top-down);
- decentralized (the trend in larger organizations);
- matrix Searching
Questions :
 What is the organisation structure?
 How do the teams work together ?

 What is the quality of communication?

8
 SYSTEMS
 Primary and secondary processes that the
organization employs to get things done
 The procedures, processes and routines that
characterize how important work is to be done:
- Operational system
- Computer system
- Human Resource System
- Financial System

Searching Questions :
 What are the main systems used ?
 How do we monitor and measure the systems?
 What are the process used ?
9
 SHARED VALUES

 ..\Creating Shared Value - One Day Worldwide.mp4

10
 SHARED VALUES
 Is the interconnecting center of McKinsey's
model
 Core beliefs and expectations that people have
in the organization
 Organisation culture practice and attitudes.

Searching Questions :
 What are the values we keep to within the
organisation?
 What is the corporate culture?
 What is the strength of the culture?
 How are we communicating those values? 13
 STYLE
 Unwritten yet intangible evidence of how management
really sets priorities and spends its time
 Cultural style of the organization and how key managers
behave in achieving the organization’sgoals.
 Management Styles

Searching Questions :
 What style does the management team adopt?

 How effective it is?

12
 STAFF
 Numbers and types of personnel within the organization.
 Collective presence of the people in the organization &
their general capabilities

Searching Questions :
 How staffs play their roles and support the

organization?
 The right people in the right places?

 What development do they need?

13
 SKILLS
 Organizational capabilities; credibility, image, influence
 Distinctive capabilities of personnel or of the
organization as a whole. Core Competencies

Searching Questions :
 What are the strongest skill we have in the
organisation?
 What skill gaps are there?

 Do we have staffs who do the job competently?

 How do we measure and reward success?

14
 CONCLUSION
➢Determines how best to study the strengths and
weaknesses of an organisation
➢Can be applied to almost any organizational or team
effectiveness issue
➢Guides organizational change or improvement in
terms of the strategies, structure & system
➢The hard and soft elements are interdependent – if
each aspects support each other, then the
organisation can be said to be ‘effective’
15
19