THE 7-S MCKINSEY MODEL

THE 7-S MCKINSEY MODEL

The 7-S-Model is better known as McKinsey 7-S. This is because the two persons who developed this model. Tom Peters and Robert Waterman. McKinsey developed a new framework for analyzing and improving organizational effectiveness,the 7-S model. The 3-Ss across the top of the model are described as 'Hard 5s'

1. Strategy: The direction and Scope of the company over the long term. Action a company plan in response to or anticipation of changes in its external environment. 

2. Structure: The basic organization of the company, its departments, reporting lines, areas of expertise, and responsibility. Basis for specialization and coordination influenced primarily by strategy and by organization size.

3. Systems: Formal and informal procedures that grown everyday activity, covering everything from management information systems.

The 4-Ss across the bottom of the model are less tangible, more cultural in nature and were termed Soft 5s by Kinsey.

1. Skills: The capabilities and competencies that exist within the company what the company

doing best. 2. Shared Values: The values and beliefs of the company. Ultimately they guide employees towards 'valued' behaviour.

3. Staff: The company's people resources and how they are developed, trained and motivated. 4. Style: The leadership approach of top management and the company's overall operating approach.

The culture of the organization, consisting of two components:

(a) Organizational Culture: The dominant values and beliefs and norms, which develop over time and become relatively enduring features of organizational life.

(b) Management Style: More a matter of what managers do than what they say. How do a company's managers spend their time?

Effective organizations achieve a fit between these several elements. If one element changes then this will affect all the others. The 7-S model is a valuable tool to initiate change processes and to give them direction. A helpful application is to determine the current state of each element and to compare this with the ideal state.

In change processes, many organizations focus their effort on the hard 5's Strategy, structure and systems. They care less for the soft 5's skill, shared values, staff and style.