McKinsey 7-S Model

What is 7-S Model?

o The Seven-Ss is a framew
ork for analyzing organi
zations and their effect
iveness.

o It looks at the seven ke

y elements that make the
organizations successful
, or not.
Shared Values
o Shared values are commonly held belief
Structure s, mindsets, and assumptions that shap
e how an organization behaves – its c
orporate culture.
Strategy
o Creates trust and links an organizatio
n together.
Systems
o Shared values are also the identity by
Style which an organization is known through
out its business areas.
Staff
o These values must be stated as both co
rporate objectives and individual valu
Skills es.
Shared Values o Structures describe the hierarchy of a
uthority and accountability in an orga
Structure nization, the way the organization's u
nits relate to each other: centralized
, functional divisions (top-down); dec
Strategy entralized (the trend in larger organi
zations); matrix, network, holding, et
Systems c.

Style o Most organizations use some mix of str

uctures - pyramidal, matrix or network
ed ones - to accomplish their goals.
Staff

Skills
Shared Values
o Strategy are plans an organization
Structure formulates to reach identified goal
s, and a set of decisions and actio
ns aimed at gaining a sustainable a
Strategy dvantage over the competition.

Systems

Style

Staff

Skills
Shared Values o Systems define the flow of activiti
es involved in the daily operation
Structure of business, including its core pro
cesses and its support systems.
Strategy
o They refer to the procedures, proce
sses and routines that are used to
Systems manage the organization and charact
erize how important work is to be d
Style one.

Staff

Skills
Shared Values o "Style" refers to the cultural style o
f the organization:
Structure - how key managers behave in achieving
the organization's goals,
Strategy - how managers collectively spend thei
r time and attention.

Systems
How management acts is more important th
at what management says.
Style

Staff

Skills
Shared Values
o "Staff" refers to the number a
nd types of personnel within t
Structure
he organization and how compan
ies develop employees and shap
Strategy e basic values.

Systems

Style

Staff

Skills
Shared Values
o Skills" refer to the dominant disti
nctive capabilities and competencie
Structure s of the personnel or of the organi
zation as a whole.
Strategy

Systems

Style

Staff

Skills
SWOT
SWOT analysis is a tool f
or auditing an organizati
on and its environment. I
t is the first stage of p
lanning and helps markete
rs to focus on key issues
.
In SWOT, strengths and weaknesses are inter
nal factors.
For example:
A strength could be:
• Your specialist marketing expertise.
• A new, innovative product or service.
• Location of your business.
• Quality processes and procedures.
• Any other aspect of your business that adds v
alue to your product or service.
A weakness could be:
• Lack of marketing expertise.
• Undifferentiated products or services (i.e. in rel
ation to your competitors).
• Location of your business.
• Poor quality goods or services.
• Damaged reputation.
 In SWOT, opportunities and threats are ex
ternal factors.
For example:
An opportunity could be:
• A developing market such as the Internet.
• Mergers, joint ventures or strategic alliances.
• Moving into new market segments that offer improve
d profits.
• A new international market.
• A market vacated by an ineffective competitor.
A threat could be:
• A new competitor in your home market.
• Price wars with competitors.
• A competitor has a new, innovative product or
service.
• Competitors have superior access to channels o
f distribution.
• Taxation is introduced on your product or serv
ice.
Thanks!