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Presented by Chandan Kumar Das

WHY 7S ?
Ensuring that all parts of the Organization work in harmony
Analysing how well a organization is positioned to achieve its intended objective

Helpful in situations like

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

Recognize the full range of elements that need to be changed and focus on the ones

that will have the greatest effects

All seven variables are interconnected- to make progress in one, adjustments need to

be made in others also


The McKinsey 7-S model involves seven interdependent factors which are

categorized as either "hard" or "soft" elements:

Hard Elements

Soft Elements

Shared Values

Hard elements are easier to define or identify and management can directly

influence them

Soft elements, on the other hand, can be more difficult to describe, and are

less tangible and more influenced by culture.


Strategy:the plan devised to maintain and build competitive advantage over

the competition. But the key is not to look for strategy but to look if its aligned
with other elements
Example : low cost strategy, product differentiation
Structure:represents the way business divisions and units are organized and

includes the information of who is accountable to whom

Example: Functional structure, divisional structure
Systems: Formal processes and procedures to manage the organization

Example: performance measurement, reward system, budgeting, resource

allocation, information system


Style:represents the way the company is managed by top-level managers, how they

interact, what actions do they take and their symbolic value. In other words, it is the
management style of companys leaders
Staff:this element is concerned with what type and how many employees an

organization will need and how they will be recruited, trained, motivated and rewarded
Skills:the actual skills and competencies of the employees working for the company.

During organizational change, the question often arises of what skills the company will
really need to reinforce its new strategy
Shared Values:called "superordinate goals" and serve as guiding principles of what

is important helps focus attention and provides a broader sense of what is important.
Values are the identity by which a company is known throughout its business areas.


Strategy. Starbucks concentrates on the quality of its products at the same time

offering excellent level of customer services. The main strategy for the company
is to increase revenues through effectively positioning Starbucks stores as third
place environment.

Structure. Flat management structure is maintained. It eliminated the positions of

assistant managers within the stores, after which there were only three levels of
management store manager, shift manager and customer assistants, thus
considerable amount of costs was saved and organisational efficiency increased.

Systems. Rather than daily roles among customer assistant being appointed by

shift supervisors, the rotation system of duties was introduced that reduced the
potential of conflicts among the workforce.

Shared values. Currently effective set of values are being promoted by

management at Starbucks, however, ensuring these values being shared and

appreciated by all members of the workforce.

Skills. Necessary training and development programs are organised in a

systematic manner and thus it ensures that all members of the workforce are
equipped with skills necessary to achieve a high level of customer satisfaction.

Style. Management style within stores has been changed to inspirational

management. In this way a greater number of the workforce can be effectively

motivated for higher performances with less financial resources.

Staf. Only capable and promising candidates are employed by Starbucks

The firm has a clearly defined strategy which is well communicated with both

employees and customers which helped organisations effective growth.

Due to this 7s model , Starbucks was able to leverage and replicate experience in

each of its stores.

Provided reinforcement by supplying frontline employees with the training and


What is our strategy?
How do we intend to achieve our objectives?
How do we deal with competitive pressure?
How are changes in customer demands dealt with?
How is strategy adjusted for environmental issues?
How is the company/team divided?
What is the hierarchy?
How do the various departments coordinate activities?
How do the team members organize and align themselves?
Is decision making and controlling centralized or decentralized? Is this as it should be, given

what we're doing?

Where are the lines of communication? Explicit and implicit?

What are the main systems that run the organization? Consider financial and HR systems as

well as communications and document storage.

Where are the controls and how are they monitored and evaluated?
What internal rules and processes does the team use to keep on track?
Shared Values:
What are the core values?
What is the corporate/team culture?
How strong are the values?
What are the fundamental values that the company/team was built on?
How participative is the management/leadership style?
How effective is that leadership?
Do employees/team members tend to be competitive or cooperative?
Are there real teams functioning within the organization or are they just nominal groups?

What positions or specializations are represented within the team?
What positions need to be filled?
Are there gaps in required competencies?
What are the strongest skills represented within the company/team?
Are there any skills gaps?
What is the company/team known for doing well?
Do the current employees/team members have the ability to do the job?
How are skills monitored and assessed?