The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of the Organization

© Operational Excellence Consulting. All rights reserved.
7S
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
The McKinsey
FRAMEWORK

© Operational Excellence Consulting. All rights reserved. 2
Learning Objectives
Understand the
McKinsey 7S framework
and its interrelated
elements
Understand the best
practices for
implementing the 7S
framework in an
organization
Learn how to apply the
7S framework to
evaluate organizational
effectiveness and
alignment
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

Contents
1 7S Framework & Elements
2 7S Checklist Questions
3 Using the 7S Framework
4 7S Implementation Steps
5 Examples of 7S Applications
6 7 Vectors of Contention
7 Critical Success Factors

What is the 7S Framework?
§ It is a management framework that describes 7 factors to organize a
company in a holistic and effective way
§ Together these factors determine the way in which an organization
operates
§ Managers should take into account all 7 of these factors, to be sure
of successful implementation of a strategy
§ Large or small, the strategies are all interdependent, so if you fail to
pay proper attention to one of them, this may effect all others as well

The 7S Framework
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values
The framework is most often used as a tool to assess and monitor
changes in the internal situation of an organization.

Description of the 7S Elements
Elements Description
Strategy
§ The plan devised to maintain and build competitive advantage
over the competition.
Structure § The way the organization is structured and who reports to whom.
Systems
§ The daily activities and procedures that staff members engage in
to get the job done.
Shared Values
§ The core values of the company that are evidenced in the
corporate culture and the general work ethic.
Style
§ The style of leadership adopted and the organization’s overall
operating approach.
Staff § The employees and their general capabilities.
Skills
§ The actual skills and competencies of the employees working for
the company.

The 7S Elements
§ The seven interdependent
factors are categorized as either
“hard” or “soft” elements
§ Hard Elements: Strategy,
Structure and Systems
§ Soft Elements: Shared values,
Skills, Style and Staff
Hard elements
Soft elements
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values

7S Hard Elements (“Hard S”)
§ “Hard” elements are easier to
define or identify
§ Management can directly
influence them – these are
strategy statements; organization
charts and reporting lines; and
formal processes and IT systems
§ The hard elements are:
• Strategy
• Structure
• Systems
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values

7S Soft Elements (“Soft S”)
§ “Soft” elements, on the other
hand, can be more difficult to
describe
§ They are less tangible and more
influenced by culture
§ These soft elements are as
important as the hard elements
if the organization is going to be
successful
§ The soft elements are:
• Shared Values
• Skills
• Style
• Staff
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values

Shared Values
§ Shared values refer to the core
beliefs and principles that an
organization holds
§ This can include things like the
organization’s mission, vision,
and values, as well as its
culture and overall philosophy
§ Shared values can have a
significant impact on an
organization’s performance, as
they can influence employee
behavior, decision-making, and
overall organizational culture
Structure
Systems
Style
Staff
Skills
Strategy
Shared
Values

11
“The soft stuff is
always harder than
the hard stuff.”
Roger Enrico

Mastering the Framework: Implementation Strategies
1. Identifying gaps between current
and desired states
2. Analyzing how changes in one
element may impact other
elements
3. Identifying opportunities for
improvement

7S as an Organizational Gap Analysis Tool
Current
State
Future
State
7S Gap
Analysis

Benefits of the 7S Framework
1. It offers an effective method to
diagnose and understand an
organization
2. It provides guidance in
organizational change
3. It combines rational (“hard S”)
and emotional (“soft S”)
elements
4. All parts are integrated and
must be addressed in a unified
manner

The 7S Framework can be applied to a wide variety of
situations
1. A diagnostic tool for an ineffective organization
2. Improve the performance of a company
3. Guides organizational changes
4. Examine the likely impacts of future changes within an
organization
5. Align business units and processes during a merger or acquisition
6. Determine how best to implement a proposed strategy
7. Combine rational elements (“hard S”) with emotional elements
(“soft S”)

Style – Key Questions
1. How participative is the
management/leadership style?
2. How effective is that leadership?
3. How good is management in making
decisions?
4. Where does management focus most
of its time and attention?
5. Do employees/team members tend to
be competitive or cooperative?
6. Are there real teams functioning
within the organization or are they
just nominal groups?

The 7S framework can best be used as a matrix for assessing
the impact of the proposed strategy of the organization
Staff Skills Style
Shared
Values
Systems Structure Strategy
Strategy
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Structure
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Systems
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Shared
Values
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Style
- - - - -
- - - - -
- - - - -
- - - - -
Skills
- - - - -
- - - - -
Staff
Example: Food4U Supermarket is moving away from its traditional middle-of-the-road retail
model towards an upscale, fresh, full-service, convenience-oriented grocery and fresh market.
An initial decision to hire specialists may have consequences reaching far beyond the scope of
the strategy at it was proposed.
Need for specialists:
e.g. butcher, bread,
baker, food display
specialists
Potential conflict:
(older) specialist vs.
(younger) temporary
employees

When conducting a 7S analysis, it is best to use an iterative approach
starting with Shared Values, followed by hard S’s and then soft S’s
Source: Adapted from Mindtools
Start with Shared
Values
• Are they consistent
with your strategy,
structure, and
systems? If not, what
needs to change?
Evaluate the Hard
Elements
• How well does each
one support the
others? Identify where
changes need to be
made.
Evaluate the Soft
Elements
• Do they support the
desired hard
elements? Do they
support one another?
If not, what needs to
change?
Adjust and align the
elements, and then
reanalyze how that
impact other elements
and their alignments
1
2
3
4

The 7S Implementation Journey
Understand the Current State
Define the Desired Future State
Identify the Seven Elements
Conduct Gap Analysis
Develop Action Plans
Implement Action Plans
Monitor and Evaluate
1
2
3
4
5
6
7

The 7S Implementation Journey – Steps 1 and 2
Step Description Key Activities Deliverables
1 Understand the Current
State
§ Review existing organizational
documents (e.g., mission
statements, strategic plans).
§ Conduct interviews with key
stakeholders to gather insights.
§ Analyze available data on
organizational performance.
§ Current state
assessment report
highlighting key
findings and
insights.
2 Define the Desired
Future State
§ Facilitate workshops with
leadership to define the
organization’s vision and strategic
objectives.
§ Identify areas for improvement
based on the current state
assessment.
§ Communicate the vision and
strategic objectives to all
stakeholders.
§ Vision and strategic
objectives
document.

21
“Innovation
distinguishes
between a leader
and a follower.”
Steve Jobs

The Vectors of Contention is a useful tool to profile an
organization with respect to the 7 elements
Elements Vectors of Contention
Strategy Planned Opportunistic
Structure Elitist Pluralist
Systems Mandatory Discretionary
Shared values Hard minds Soft hearts
Style Managerial Transformational
Skills Collegiality Individuality
Staff Maximize ‘Meta-mize’
Refer to Appendix 1 for explanatory notes on the Contending Opposites (Vectors of Contention).

Harmonizing Forces: Resolving Organizational
Tensions
Step Description Key Activities
1 Identify the Seven Vectors of
Contention
§ Review the 7S framework to understand the seven
vectors.
§ Identify specific examples or scenarios within the
organization that correspond to each vector.
2 Analyze Each Vector § Examine how each vector manifests in the
organization.
§ Evaluate the impact of the opposing forces on
organizational alignment and effectiveness.
3 Identify Areas of Tension § Determine which vectors are causing the most tension
or conflict.
§ Consider the implications of these tensions on
organizational performance.
4 Develop Strategies to
Address Tension
§ Brainstorm potential strategies to resolve or mitigate
the identified tensions.
§ Prioritize strategies based on their potential impact
and feasibility.
§ Implement selected strategies and monitor their
effectiveness.

Example 1: Apple – Balancing Innovation and Efficiency
Step Description Key Activities
1 Identify the Seven Vectors of
Contention
§ Apple identifies the vectors within its organizational
structure, including conflicting goals between product
innovation and supply chain efficiency.
2 Analyze Each Vector § Apple analyzes how these conflicting goals impact its
ability to introduce new products quickly while
maintaining high-quality standards.
3 Identify Areas of Tension § Apple identifies that the tension between innovation
and efficiency could lead to delays in product launches
or compromises in product quality.
4 Develop Strategies to
Address Tension
§ Apple implements strategies such as cross-functional
collaboration, flexible manufacturing processes, and
supplier partnerships to balance innovation and
efficiency.

Operational Excellence Consulting is a Singapore-based management
training and consulting firm specializing in enhancing business performance
and effectiveness. We focus on maximizing customer value and minimizing
waste through strategic adoption of Design Thinking and Lean management
practices. For more information, visit www.oeconsulting.com.sg

The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of the Organization

Recommended

Recommended

More Related Content

Similar to The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of the Organization

Similar to The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of the Organization (20)

More from Operational Excellence Consulting

More from Operational Excellence Consulting (20)

Recently uploaded

Recently uploaded (20)

The McKinsey 7S Framework: A Holistic Approach to Harmonizing All Parts of the Organization