McKinsey 7S Framework

The McKinsey 7S Framework is a management model

developed by well-known business consultants Robert H.
Waterman, Jr. and Tom Peters (who also developed the MBWA-
- "Management by Walking Around" motif, and authored – “In
Search of Excellence” - in the 1980s. This was a strategic vision
for groups, to include businesses, business units, and teams.

The 7S are - structure, strategy, systems, skills, style, staff

and shared values. The model is most often used as a tool to
assess and monitor changes in the internal situation of an
organization. The model is based on the theory that, for an
organization to perform well, these seven elements need to be
aligned and mutually reinforcing.

Whatever the type of change – restructuring, new processes,

organizational merger, new systems, change of leadership, and
so on – the model can be used to understand how the
organizational elements are interrelated, and so ensure that
the wider impact of changes made in one area is taken into
consideration.

Objectives of the 7 S Model

 To analyze as to how well an organization is positioned to achieve its

intended objective

 Ensuring that all parts of the organization work in harmony – all seven
internal aspects must be aligned to ensure organizational success

 The model can be applied to elements of a team or a project as well

Usage

• 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

The Seven Interdependent Elements

The basic premise of the model is that there are seven internal
aspects of an organization that need to be aligned if it is to be
successful.

These elements are classified as hard and soft elements.

Hard elements are easier to define or identify and management

can directly influence them – these are – Strategy, Structure
and Systems.

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

describe, and are less tangible and more influenced by culture
– these are Shared Values, Skills, Style and Staff.
 Understanding 7 Elements

STRATEGY

• Strategy represents the major approaches adopted by the

organization to achieve the vision and goals.

• Derives from assessment of organization’s internal

Strengths & Weaknesses, and external Opportunities &
Threats (SWOT Analysis);

• Includes environment influences; nature of competition;

company distinctive competencies; company key success
factors

• Strategy must be dynamic not static—responsive to the

internal and external environment.

• The plan devised to maintain and build competitive

advantage over the competition.

Check-List Questions

• 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?

STRUCTURE
 • Represents how the company is organized to execute
strategy.

• Structure may be centralized or decentralized

• Structure should be designed to facilitate achieving

corporate vision, goals & strategies.

• The way the organization is structured and who reports to

whom.

Check-List Questions

• 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?

System

• Performance management systems.

• Resource allocation systems.

• Meeting formats.

• The daily activities and procedures that staff members

engage in to get the job done.
Check-List Questions

• What are the main systems that run the organization?

• What internal rules and processes does the team use to

keep on track?

Staff

• Staffing considerations may include:

• Demographics makeup (diversity).

• Selection criteria and promotion factors.

• Staff development programs & opportunities.

• Culture within the organization.

Check-List Questions

• What positions or specializations are represented within

the team?

• What positions need to be filled?

• Are there gaps in required competencies?

Style
 • The manner in which leaders and employees “behave”
internally and externally.

• The manner in which the company interacts with

stakeholders, customers, regulators, etc.

Check-List Questions

• How participative is the management/leadership style?

• How effective is that leadership?

• Do employees/team members tend to be competitive or

cooperative?

Shared values

• The principles adopted by the company to guide its style &

behavior.

• The organization should be careful to define the corporate

values and the desired behavior for leaders and
employees consistent with these values.

• Values and desired behavior must be communicated to

and embraced by the entire organization.

• Placing Shared Values in the middle of the model

emphasizes that these values are central to the
development of all the other critical elements.

Check-List Questions
 • 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?

Skills

• Differentiating characteristics of the company’s products

and services.

• Core competencies required by leaders and other

categories of employees in order for the company to
effectively execute against the vision, values, goals and
strategies.

• Dominant attributes or capabilities that exist in the

organization

Check-List Questions

• What are the strongest skills represented within the

company/team?

• Are there any skills gaps?

• What is the company/team known for doing well?

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MBWA
The term management by wandering around (MBWA), also
management by walking around, refers to a style of business
management which involves managers wandering around, in
an unstructured manner, through the workplace(s), at random,
to check with employees, or equipment, about the status of on-
going work. The emphasis is on the word wandering as an
impromptu movement within a workplace, rather than a plan
where employees expect a visit from managers at more
systematic, pre-approved or scheduled times. The expected
benefit is that a manager, by random sampling of events or
employee discussions, is more likely to facilitate the
productivity and total quality management of the organization,
as compared to remaining in a specific office area and waiting
for employees, or the delivery of status reports, to arrive there,
as events warrant in the workplace.