INTRODUCTION

McKinsey 7s model is a tool that analyzes firms organizational design by looking at

7 key internal elements: strategy, structure, systems, shared values, style, staff and
skills, in order to identify if they are effectively aligned and allow organization to
achieve its objectives.
 HISTORY

The McKinsey 7S Framework is a management model developed by well-known business consultants Robert H.
Waterman and Tom Peters in the 1980s. This was a strategic vision for groups, to include businesses, business
units, and teams. The 7 Ss are structure, strategy, systems, skills, style, staff and shared values.
The model is most often used as an organizational analysis tool to assess and monitor changes in the internal
situation of an organization.
The model is based on the theory that, for an organization to perform well, these seven elements need to be
aligned and mutually reinforcing. So, the model can be used to help identify what needs to be realigned to
improve performance, or to maintain alignment (and performance) during other types of change.
 USES OF THE 7-S MODEL

Helps identify the strengths and weaknesses of an organization

Understanding the core and most influential factors in an organizations strategy
Examine the likely effects of future changes within a company
Align departments and processes during a merger or acquisition
Determine how best to implement a proposed strategy
Improve the performance of a company
7S MODEL
 ELEMENTS OF 7S MODEL

Hard Elements
Soft Elements

Strategy Shared Values

Staff
Structure Style

System Skills
 STRATEGY

Purpose of the business and the way the organization seeks to enhance its
competitive advantage
plans for the allocation of a firms scarce resources over time to reach identified
goals
plans of action an organization prepares in response to, or anticipation of,
changes in its external environment
 STRUCTURE

Division of activities; integration and coordination mechanisms

represents how the company is organized
refers to how organization's units relate to each other: centralized; decentralized;
matrix, network
 SYSTEMS

Formal procedures for measurement, reward and resource allocation

Refers to the 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.
For Example:- Retail systems, call center systems
 SHARED VALUES

the interconnecting center of McKinsey's model.

set of traits, behaviors, and characteristics that the organization believes in.
include the organizations mission and vision.
 STAFF

Organization's human resources, demographic, educational and attitudinal

characteristics
refers to the company's people resources and how they are developed,
trained and motivated

selection, reward, recognition, retention, motivation and assignment to

appropriate work are all key issues here
 STYLE

Typical behavior patterns of key groups, such as managers, and other

professionals
refers to the employees shared and common way of thinking and behaving -
unwritten norms of behaviour and thought
 SKILLS

The organization's core competencies and distinctive capabilities

refers to the distinctive capabilities of personnel or of the organization as a whole
which are needed to effectively execute the companys vision, values, goals and
strategies
Presented By
Manu Alias
Jeswin K Jose
Anand
Ajith G Pillai