THE MCKINSEY 7 S FRAMEWORK

The Mckinsey 7 s framework helps an organization to analyze how well it (organization) is positioned to achieve its intended objectives. The Mckinsey framework was developed in the early 1980s by two consultants, Top Peters and Robert Waterman of Mckinsey & Company consulting firm. The basic underlying argument of this model is that the organization needs to align its 7 internal aspects if it wants to be successful. In situations where the alignment perspective is useful, the 7 s model can be used. For example, the 7s model can help the organization in the following ways: 1. It can be used to improve the performance of the company. 2. Examine how future changes will likely affect the company. 3. It can be used during a merger or an acquisition to align departments and processes. 4. Determine how to implement a proposed strategy in an optimal way.

The Mckinseys 7 S Model:

STRUCTURE

STRATEGY

SYSTEMS

SHARED VALUES

SKILLS STAFF

STYLE

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The above model shows that: 1. Due to the interdependency of elements, the change in one element affects all other elements. 2. Shared Values in the center of the model emphasizes the fact that all the other elements originated from these values. As these values changes so as other elements do.

The 7 Elements of Mckinseys Framework:

There are 7 interdependent elements categorized as either hard or soft elements in Mckinseys framework. These 7 elements are listed below under soft (Process aspects of implementation of strategy) and hard (HRM aspects of implementation of strategy) elements headings: Hard Elements: 1. Strategy It is simply the plan formulated to build and maintain competitive advantage over the competition. In other words it is the long term direction and goal of the company. Strategy also deals with resource allocation, and includes customers, competition, and the environment. 2. Structure It refers to the structure (centralized or decentralized) of business units as well as how they communicated with each other or who reports to whom. In other words, it is the basic organization of the company, reporting lines, departments, responsibilities, and areas of responsibility. 3. Systems It refers to the daily activities and procedures undertaken by the staff members in order to complete their work. It not only includes IT systems and financial systems but also performance appraisal. These systems cover everything from management information systems to the systems at the point of contact with the customers. Hard elements consists of strategy statements, reporting lines, organization charts, formal processes, and IT systems. Hard elements are easily identifiable and definable. These elements can be directly influenced by the management.
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Soft Elements: 1. Shared values These are called subordinate goals as well as the core values. These values are useful in number of ways among which one is that they guide the employees towards valued behavior. 2. Skills It refers to the actual competencies and skills of the organizational employees. In other terms it refers to what the company can do best. 3. Style It refers to the style of leadership adopted by the organization/managers as well as companys overall operating approach. It includes core beliefs, norms, and management style in the organization. 4. Staff It refers to the employees in terms of their size and types, and their general capabilities how they are developed, motivated, and trained. Unlike hard elements, soft elements are more influenced by culture, are difficult to, and are less tangible.

The Use of Model:

1. This model can be used to identify those needs which should be realigned during changes to improve performance. 2. This model helps in developing an understanding of the interrelation of the organizational elements in order to ensure that the wider impact of changes made in any area are taken into consideration i.e. a change in one area impacts all other areas. 3. It can also be used for a gap analysis between the current situation and the proposed future situation. Then the changes in the 7 elements can be made to narrow or eliminate the gap between the current and desired situation.

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