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McKinsey’s Seven S Model

Effective Strategy
What is 7-S
The 7-S model is a tool for managerial
analysis and action that provides a
structure with which to consider a
company as a whole, so that the
organization's problems may be
diagnosed and a strategy may be
developed and implemented.
McKinsey’s 7 S Model
 Strategy - the route that the organization
has chosen for its future growth; A plan an
organization formulates to gain a
 Structure - the framework in which the
activities of the organization's members are
coordinated. The four basic structural forms
are the functional form, divisional structure,
matrix structure, and network structure.
McKinsey’s 7 S Model
 Style - the leadership approach of top
management and the organization's
overall operating approach; Also the
way in which the organization's
employees present themselves to the
outside world, to suppliers and
McKinsey’s 7 S Model
 Skills - what the company does best; The
distinctive capabilities & competencies that
reside in the organization.
 Staff - the organization's human resources;
Refers to how people are developed,
trained, socialized, integrated, motivated,
and how their careers are managed.
McKinsey’s 7 S Model
 Shared values - originally called
superordinate goals; The guiding concepts
& principles of the organization - values and
aspirations, often unwritten.
 The fundamental ideas around which a
business is built; The things that influence a
group to work together for a common aim.
McKinsey’s 7 S Model
All Ss are interrelated, so a change in one
has a ripple effect on all the others. It is
impossible to make progress on one without
making progress on all.
You have to master systems thinking and pay
attention to all of the seven elements at the
same time. There is no starting point or
implied hierarchy - different factors may drive
the business in any one organization.