The McKinsey 7S framework is a tool used to analyze an organization's internal situation and monitor changes. It examines seven internal elements - strategy, structure, systems, shared values, style, staff, and skills. The framework can be used to improve performance, examine effects of changes, and align departments during mergers. The document outlines the elements of the framework and provides examples of how organizations can use it to analyze their current situation, identify gaps, and make adjustments to ensure effectiveness. It also discusses questions managers can ask to evaluate each of the seven elements.

1. 7S
Jehaangir
Vikash
Vijay
Shivani

2. THE MCKINSEY 7S FRAMEWORK
The McKinsey 7S Framework
A tool to assess and monitor
changes in the internal situation of
an organization
Management model developed by well-known business
consultants
Robert H. Waterman, Jr.
Tom Peters.
and

3. USAGE: GENERIC 7S FRAMEWORK
Wide variety of situations
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
a proposed strategy.
to implement

4. GENERIC 7S FRAMEWORK
Hard Elements
•Easier to define
•Easier to identify
•Management can
directly influence them
Central to the
development of
all the other
critical elements
•Difficult to describe
•Less tangible
•More influenced by
culture
Soft Elements

5. ELEMENTS OF THE MCKINSEY 7S FRAMEWORK

6. HOW TO USE THIS MODEL?
Aligned
Analyze
Mutually
reinforcing
The current
situation
Adjust
Fine Tuning
Ensure that
your
organization
works
effectively
A proposed
future situation
identify gaps and
inconsistencies
between them

7. 7 CHECKLIST QUESTIONS
Strategy
How is strategy
adjusted for
environmental
issues?
What is our
Strategy?
How do we intend
to achieve our
objectives?
How are changes in
customer demands
dealt with?
How do we deal
with competitive
pressure?

8. 7 CHECKLIST QUESTIONS
Structure
Is decision making and
controlling centralized or
decentralized? Is this as it
should be, given what we're
doing
How is the
company/team
divided?
Where are the lines
of communication?
Explicit and implicit?
What is the
hierarchy?
How do the team
members organize
and align themselves
How do the various
departments
coordinate activities?

9. 7 CHECKLIST QUESTIONS
Systems
What are the main
systems that run the
organization? Consider
financial and HR systems
as well as
communications and
document
What internal rules
and processes does
the team use to keep
on track?
Where are the controls
and how are they
monitored and
evaluated?

10. 7 CHECKLIST QUESTIONS
Shared Values
What are the
fundamental values
that the
company/team was
built on?
How strong are
the values?
What are the core
values?
What is the
corporate/team
culture?

11. 7 CHECKLIST QUESTIONS
Style
Are there real teams
functioning within the
organization or are
they just nominal
groups?
Do employees/team
members tend to be
competitive or
cooperative?
How participative is
the
management/leader
ship style?
How effective is that
leadership?

12. 7 CHECKLIST QUESTIONS
Staff
What positions or
specializations are
represented within
the team?
Are there gaps in
required
competencies?
What positions
need to be filled?

13. 7 CHECKLIST QUESTIONS
Skills
What are the
strongest skills
represented within
the company/team?
How are skills
monitored and
assessed?
Do the current
employees/team
members have the
ability to do the job?
Are there any skills
gaps?
What is the
company/team
known for doing
well?

14. 7 MATRIX QUESTIONS
Examine where there are gaps and
inconsistencies between elements
Start with your Shared Values: Are they consistent with your structure,
strategy, and systems? If not, what needs to change?
Then look at the hard elements. How well does each one
support the others? Identify where changes need to be made
Next look at the other soft elements. Do they support the desired
hard elements? Do they support one another? If not, what needs to
change?
Re-analyze how that impacts other elements and their
alignment

15. THE MOST COMMON USES OF THE MCKINSEY 7S FRAMEWORK ARE:
To



facilitate organizational change.
To help implement new strategy.
To identify how each area may change in future.
To facilitate the merger of organizations.

16. hypercompetitive
environment.
The McKinsey New 7S is best for

17.  VISION
FOR DISRUPTION
Superior stakeholder satisfaction
 Strategic soothsaying

TACTICS
FOR DISRUPTION
Shifting the rules of the game
 Signaling strategic intent
 Simultaneous and sequential strategic thrusts


CAPABILITY FOR DISRUPTION
Positioning for speed
 Positioning for surprise


18. KEY GOALS OF NEW 7S


status quo
Creating temporary advantage
Disrupting the
Seizing
the initiative
 Sustaining the momentum

19. Superior stakeholder satisfaction
Successful priority:
customer
as most
important stake holder.
Key
to identify customer
satisfaction is to
 Identify customer needs that even the customer can
not articulate
 Find new and previously unserved customer
 Create customer need that never existed
 Predict changes in customer need before they happen

20. Strategic soothsaying
Understanding
the future evolution of market and
technology that will create new opportunity
 Opportunity can be found by creatively
combining products

Understanding

Serving
trends in business environment
new customer market with
existing capabilities

21. Positioning for speed and surprise

Prepositioning
company’s
organisational
capabilities for speed and surprise

Creating the abilities to react quickly to opportunities or
outmanoeuvre competitors
The longer the first mover can delay entrance by
to

competitors in to market by stunning them with a
surprise attack, the more time there is to create
a strong position

22. Shifting the rules of the game
Creating new opportunities for satisfying customer
Microsoft’s
creation of Windows
also shifted the rules and created new markets for
applications programs.
It changed the nature of competition between IBMCompatible personal computers and apple system

23. Signaling strategic intent
Verbal
announcements of strategic intent –
are important preludes to more powerful actions.
 Signals can stall the actions of competitors or create
uncertainty that erodes their will to defend against
attacks.

Pre announce or fake
aggressive
offensive moves that alter the behaviour of
competitors.

24. Simultaneous and sequential
strategic thrusts

Use of a series of a action design to
confuse competitors.

stun or
Disrupting the status quo to create new advantages or
erode those of competitors.
Thrust move on several geographic or market
fronts simultaneously.
 Simultaneous and sequential thrusts are used by

harass, paralyze,
induce error, or block competitors.
hypercompetitive
firms
to

25. FAILURES

Losing touch with

Lack of
customers
strategic soothsaying

Lack of speed

Lack of surprise

Inability to shift the
rule of game
Failure to use signalling effectively
 Failing victim to simultaneous and sequential thrust


26. Losing touch with customers
Lack of strategic soothsaying
Lack of speed

27. Lack of surprise
Inability to shift the rule of game
Failure to use signalling effectively
&
Failing victim to simultaneous and
sequential thrust

28. Summary


29. New 7S
 VISION
FOR DISRUPTION
TACTICS

FOR DISRUPTION
CAPABILITY FOR DISRUPTION