McKinsey 7S framework is a model used in the change management context. It is a framework that helps to identify organizational effectiveness. It assumes that there are seven internal factors that any organization needs to be aligned and reinforced if they are planning to become successful in the business industry.
McKinsey 7S framework highlights seven factors that can be identified and classified as ‘hard’ elements and ‘soft’ elements. Hard elements can be more easily identified and influenced by the management of the organization. Soft elements are more intangible, unclear, and influenced by the corporate culture.
McKinsey’s 7S framework is a tool that is used by business organizations in the strategic planning process. It helps to show how seemingly disparate aspects of a business organization are, mostly interrelated and dependent on one another when achieving the overall success of the business.
McKinsey 7S model can be applied in a wide range of situations where it is important to understand how different parts of the organization have to work together for an uninterrupted business process. Apart from that, it can be used as a management tool in decision-making related to corporate strategy.
This framework is used to examine the predictive effects of the future changes in the foreseeable future and align business activities in order to face the changes successfully.
Elements of McKinsey 7S Framework
The related 7 elements can be identified as below.
Hard elements
– Strategy
Strategy is the plan developed by the organizational management in order to achieve its goals and objectives while remaining competitive in the market they are operating in. The ideal way of achieving a competitive advantage in the market is to establish a long-term plan that aligns with the other elements in the model. this long-term strategic plan should communicate the goals and objectives of the organization and how the business is planning to achieve set goals and objectives.
– Structure
The structure of the organization is build up based on the corporate hierarchy, divisional makeup that summarizes the operations functions in the business process, and the chain of command in the business. It also explains the management configuration and the responsibilities of the employees in the business process.
– Systems
The systems of an organization are the daily processes, procedures, workflows, and decisions that help the business to operate continuously. Systems help the smooth run of standard operations of an organization.
Soft elements
– Shared Values
Shared values are standards and norms that are commonly accepted within the organization. These can create and influence as well as temper the behavior of the employees and the management of the organization. Shared values may be explained in detail in the organizational guidelines that are presented to the employees. In practical situations, shared values are related to the actual accepted behavior within the organizational environment.
–Skills
Skills can be considered as the capabilities and the talents of the management and the employees of the business organization. These can determine the types of achievements and work that can be achieved by the organization using the skills. There are practical situations that the organizations assess the available skills in the business and decide to make changes such as business process re-engineering in order to align the organizational activities to the business goals and objectives.
– Style
This element in the McKinsey 7S framework explains the approach that management of the organization takes in leading the company towards goal attainment. Apart from that, it explains how the management can influence the performance, corporate culture, and productivity of the organization by setting examples and guiding the subordinates.
– Staff
Staff refers to the employees of the business organization. No matter how large the organization is, as long as the employees are motivated, well trained on their job responsibilities, and prepared for the goal achievement, they can run the business processes continuously without a problem.