7-S Framework
(McKinsey)

Explanation of the 7-S Framework of McKinsey.

What is the  7-S Framework? Description

The 7-S Framework of McKinsey is a management model that describes 7 factors to organize a company in an holistic and effective way. Together these factors determine the way in which a corporation operates. Managers should take into account all seven of these factors, to be sure of successful implementation of a strategy. Large or small. They're all interdependent, so if you fail to pay proper attention to one of them, this may effect all others as well. On top of that, the relative importance of each factor may vary over time.

 

Origin of the 7-S Framework. History

The 7-S Framework was first mentioned in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981. They had been investigating how Japanese industry had been so successful. At around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of these four authors in 1978. It appeared also in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy company McKinsey. Since then it is known as their 7-S model.

 

The meaning of the 7 Ss

 

McKinsey 7-S frameworkShared Values (also called Superordinate Goals).

The interconnecting center of McKinsey's model is: Shared Values. What does the organization stands for and what it believes in. Central beliefs and attitudes. Compare: Strategic Intent


Strategy

Plans for the allocation of a firms scarce resources, over time, to reach identified goals. Environment, competition, customers.
 

Structure

The way in which the organization's units relate to each other: centralized, functional divisions (top-down); decentralized; a matrix, a network, a holding, etc.

 

Systems

The procedures, processes and routines that characterize how the work should be done: financial systems; recruiting, promotion and performance appraisal systems; information systems.
 

Staff

Numbers and types of personnel within the organization.
 

Style

Cultural style of the organization and how key managers behave in achieving the organization's goals. Compare: Management Styles.
 

Skills

Distinctive capabilities of personnel or of the organization as a whole. Compare: Core Competences.

 

Strengths of the 7-S Model. Benefits

  • Diagnostic tool for understanding organizations that are ineffective.
  • Guides organizational change.
  • Combines rational and hard elements with emotional and soft elements.
  • Managers must act on all Ss in parallel and all Ss are interrelated.

Book: Ethan M. Rasiel, Paul N. Friga - The McKinsey Mind: Understanding and Implementing the Problem Solving Tools and Management Techniques -

 

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Recent User Comments
andrew nyamande - Zimbabwe 7-s framework and Leadership Performance "How to apply the 7-s framework to effective leadership performance?"    0
je juico - phil Most Important S "Among the seven s-es, which is the most important one to be become a successful organization or company?"    0
Tharshi - Srilanka 7S model organisational Change Overcoming Barries "How do companies use the 7s model to overcome their barriers while establishing organizational changes?"    2
 - UK Google and its success with 7S "Hi I am a MBA student and I need to write an assignment about Google`s success. How can I explain its success with 7S framework? Any ideas?? Thanks a lot."    4
Caroline - Zimbabwe 7 S model in the post merger phase "I'm a Masters student looking at the post merger phase of a university. How can I apply the 7 S model in studying the post merger phase? Please assist"    10
Best User Comments
Eric - Botswana 7S <> Leadership, Management "How do you link the 7 s framework with leadership and management. Because when discussing leadership and management most writers say leaders set the major objectives and strategies and managers will transmit and implement this strategies. But what confuses me is that stategy is part of the technical skills( hard skills) which is taken care by managers."    43
Mahamood - India Limiting choice of 'S'? "While reading for my management course, I couldn't help but wonder if the choice of an alphabet limits the scope and skews the interpretation of a model. When formulating a model, how easy / difficult is it to find a word that starts with a particular letter that succinctly describes a concept? To my untrained mind, values like respect, collaboration, openness and others seem to fit in just as well and they don't start with a 'S'. Consider other frameworks out there like the 3C or the 4P in marketing. Did the choice of a particular alphabet leave out important building blocks? I for one can't tell.. "    17
Sibusiso Thungo - SouthAfrica Communication "how do you link the 7S Model to problems related to communication in a work place?"    13
John T. - Greece 7-S Framework "1) We should have in mind that, according to the creators of this Framework, number 7 is not of great importance. It could be 6 or 8 etc. 2) I believe that the strong (another S -!!!-) basis of this Framework is Humans/People of an organization. They can be found behind every one of these "S"s. 3) If the Framework is faced as "open" and "dynamic" and, also, from a holistic perspective, it can be an interesting tool for contemporary organizations."    13
Deborah Poulsen - Denmark Hard and Soft S's "The seven S's can be distinguished in hard S's (the top-3: Strategy, Structure and Systems) which are relatively easy to identify and influence. The other 4 S's are more difficult to identify and influence, becuase they are less tangible and more cultural by nature, and are sometimes neglected in major change efforts and mergers. However, they are just as important as the other 3! The 7S model is a constant reminder for that fact."    13
Carlo - Netherlands 7S Confrontation Matrix "You can create a 7S Confrontation Matrix with all 7 S-es listed both horizontally and vertically. In the cells or intersections you list the expected impact / potential problem areas / solutions of a strategy or a strategy change.
This allows you to make a holistic and structured analysis and prevents you skip major attention areas."		    12
Vinod - India Applications of the 7-S Framework "While some models of organizational effectiveness go in and out of fashion, one that has persisted is the McKinsey 7S framework. Developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.
The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help you:
- Improve the performance of a company;
- 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."		    11
 - The Netherlands Does the 7-S Model still holds true today? "Does the 7-S Model still holds true in today's business environment? Companies are increasing outsourcing their functions, and headquarters are only becoming a virtual company. Look at a company like Nike which has become successful without actually owning the production facilities of their own. Instead they outsourced the production around the world. Where do we stand in today's environment, where companies can be virtual and yet make huge profits, with the 7-S Model. I think the time has come to re-define the framework to suit today's globalisation."    7
 - India Effectiveness of 7 s framework "The model given in 7S framework is so exhaustive that it includes almost all the aspects of the organisation.
- The Superordinate goals provide the clear cut lines on which the employees of the organisation have to work and what the company expects form them.
- Structure, systems and strategy provide the roadmap through which the employees can understand how to go about the work.
- Staff, styles and skills provide the organisation with a lucid set of HAVEs and HAVE NOTs.
All these things put together gives an organisation a proper shape and systematised way of functioning..."		    6
sajeev - India Centrality of Shared Values "The Ss in the 7s theory are essentially the very cardinal ingredients of a successful organization. All surrounding six Ss are shown or perceived to be having a direct relation towards the S of Shared Value. It can always happen that the style confronts the shared value rather shared value influences the style in professionally managed organizations. Hence, it is best described as the resonance of shared values and style influences the success of the organization in knitting all other Ss to be successful."    4

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Compare with the 7-S Framework: Causal Model of Organizational Performance and Change  |  Ashridge Mission Model  |  Strategic Alignment  |  McKinsey Matrix

 

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  ● Boudewijn G (Netherands) Post Merger with 7S Framework "1. Assess current situation for each of the 7 S-es for both parts of the new organization.
2. Discuss and Agree on what is the desired situation for each of the 7 S-es
3. Strategy and business plan (Costs, Benefits, Migration, Communication, Risks, Projects, etc) to go from 1 to 2."

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  ● Sarah (Malawi) Leadership & Management "there is a figure in a book by Watson (1983), its got demarcations for the hard and soft triangle. the hard one is for management and the soft one is for leadership. it might be of assistance"

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  ● Wallace (INDIA) Answer "Hello Mahamood, 4P's refer to Product, Price, Place, Promtion. But there is no end to it. Actually Politics of a country is the most important P. Similarly Packaging, Power, Pace are also equally significant. Similarly although you speak of three C's, we can add as many C's as we want."
  ● Nilesh (USA) 7S Framework "It is really amazing to see how well models can fit into words from same alphabet. Or usually things can be divided into two/three main categories. Beyond the limitation or possibilities with words underlying theoretical concepts are more important. Key aspect of 7s framework lies in the interaction of hard and soft constructs such as strategy and style etc. Now any scheme that can comprehensively and distinctly cover these hard and soft factors would suffice."
  ● Wojtek (Scotland) Frameworks "Every framework aims to simplify things. That's what they are all about. You wont find a perfect one. One letter of alphabet is used to help you remember that's all. Basically it is up to you if you use a framework in a given situation or not."
  ● Jon (USA) Use of one letter mnemonics "I think the use of single letter mnemonics is ill advised, to be blunt. If the model is important, you'll put a copy on the wall and look at it and use it frequently anyway. I think many models really stretch to use the letter instead of the natural item that should be there. As a consultant I have seen dozens of these one-letter models and personally I can remember models if the concept clicks true much easier than trying to remember the 5 S's or whatever."

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  ● swaraj vinjapuri (USA) Hard and Soft S's "Thanks Daeborah for your comments, I echo your thoughts. The last 4-S are more difficult and often neglected and are the major reason companies and organizations fail."
  ● John T. (Greece) Hard and Soft S's "It would be better if you have mentioned the writer of these thoughts !!!"
  ● Alan (UK) Soft Ss and Hard Ss in Management "At the time Pascale and Tanner and Athos wrote their book The Art of Japanese Management (1981), managers in US (Western) firms were preoccupied with the hard Ss. Japanese managers were believed to be superior, due to the attention they gave to the soft Ss. Partly because of this book and the 7S Framework in the last decades the overall trend in the US (and in Europe to a lesser degree) has been directed towards the soft Ss."
  ● Samuel Nduati Mbugua (Kenya) Hard and Soft Factors in 7S Model "The 7S-Framework is a very powerful model for carrying out organizational change since the seven factors can be used to carry out organizational structural changes and changes in human capital management. The model therefore can be used in organizational development since the hard factors i.e strategy, structure and systems are the ingredients of organization theory whereas the soft factors i.e shared values, skills, staffing and style are the ingredients of organizational behavior."

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  ● Shirish (India) 7S is only theoretical "I think the whole 7s concept is only theoretical. Organisations have to practise it without realising that it is 7S or otherwise! it is a holistic concept!!"
  ● seyi (Singapore) Use 7S whether virtual or not "I believe every company should still practise this holistic concept whether operating a virtual company or not. As long as there is an organisation strategizing to do business in a given structured system by a few or many staff with required skills and styles guided by the company's shared values."
  ● Aung (Myanmar) Nike still has all elements "It's especially useful when u r starting a new biz or assessing ur internal environment. It's a checklist. Nike still have all the elements no matter how lean it is."
  ●  (India) Know when and how to use 7S concept "7-S model is a concept, is well accepted and practiced methodology. Suitability to time, situation, type of industry, the business conditions etc. are to be visualized and balanced between the present practices and the changes required. In other words it is a useful tool, only one should when and how it is to be used."
  ● Ellie (Netherlands) Make or Buy for each S "The value of the 7S model is that it helps you to design and verify all dimensions of a business. All S-es have to be arranged for, and this should be done in a holistic, interconnected way.
However for each S there can be a make or buy (do it yourself or outsource) decision. This does not decrease the value of the framework in any way, because even outsourced dimensions still need to be taken care for in an integrated way."
  ● pedro (portugal) 7-model "My view is that all the model depends on the communication processes. Sometimes everything looks like it is on the right place, but everyone still has his own perception, usually the reason for misleading problems"
  ● Sophia (Taiwan) Philosophy & Educational management and Administration "As you mentioned, the 7s is a kind theoretical concept, however, it can be transferred into practice. Further, except for the superordinate goal, the rest 6s can be divided into two parts, say, on for dealing with events, and the other dealing with people. In this way, the 6s will be available for leaders and managers to check what part should be changed and where to go."
  ● a jagan mohan reddy (india) Refined 7-s model "I agree with Tony. In the changing times we need to re-look at these existing models and if need be refine/modify them."
  ● R.Ravichandran (India) 7-s framework excellent reference point "Although the business revolutionizes in today's context, it is necessary to visit the basics and have a check now and then to benchmark the progress and compare the value systems kept inside for the future. I believe that the framework is an excellent reference point for today's practicing managers."
  ● Gert Lubbersen (Netherlands) 7S model of Mckinsey "The model is still valid, it can occur that in changing times some of the 7 elements will become wmore relevant. We used the model i.e. for a benchmark in a merger process."
  ● Samuel Nduati Mbugua (Kenya) 7-S Framework and the public sector management "The 7-S Framework is a good tool of formulatiing and implementing change programmes in the private sector and not in the public sector. This is because the shared values or the superordinate goals are not clearly stated in the public sector. This makes it difficult to achieve the intended results as the achievement of superdinate goals is the overall purpose of organisational change."
  ● Musamali Martin (Kenya) Is 7S model still valid? "Yes indeed it is. Consider current delevelopments in the increasingly competitive business environment where a similar product (with some differenciation) is priced differently in different market segments. This act alone may result in a turnaround in profitability of an enterprise. It is all about having a perfect mix of the 7-S components that firms can still rise to enjoy market leadership advantages. Strategic Mergers and acquistions bring out a magical structure that delivers results.. The 7 S model is more than applicable today.. it only depends on the depth with which you analyse and apply it."
  ● Andrea Tedone (Italy) 7S & System Thinking "The plus of the 7S framework, IMO, is the systemic approach, so that if you plan a change management initiative in one of the 7 domains, you can "easily" try to depict the snowball effect on the others. The minus, as all the others theoretical frameworks, is that you cannot apply just one model and full stop: you have to use this framework in your toolkit, together with others you are comfortable with, and then.... "the sky is the limit"!"
  ● Claude Balleux (Canada) 7S model "A model is never more than theorical. But, it gives clue to understand something. That's the same for this one. And I think that it's still usefull."

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  ● Edwin (Singapore) Historical reasons for the centrality of Shared Value "I've just read The World's Newest Profession by Christopher McKenna. In his book, apparently, the 7 S model was created during a period where McKinsey gained a reputation amongst corporations for being the firm with superior culture and professionalism. Given this, it was part of Mckinsey's strategy to monetize such a reputation and sell work in Organizational Change. Seen in this context, the 7 S model could be seen as marketing communication - a means for the firm to sell more work in Organizational Change, as a much as a strategic tool, and this possibly accounts for the centrality of Shared Values in the 7 S model."
  ● Albert Essandoh (USA) Centrality of Shared Values in the 7-S Model "The centrality of shared values in the model, rightly elevates it to a missional level."

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