McKinsey 7s Principle

chan y h
2 min readOct 5, 2017

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This is a management framework developed by McKinsey consultants Robert Waterman and Tom Peters in the late 70’s. Although the business world evolved a lot since then, the tool is still quite commonly taught in university; and proved to be extremely useful for organisational analysis to access and monitor internal changes happening / to be happened within a complex company. Sample use cases :

  • 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 7s elements are :

Hard Elements

  • Strategy: the plan devised to maintain and build competitive advantage over the competition.
  • Structure: the way the organization is structured and who reports to whom.
  • Systems: the daily activities and procedures that staff members engage in to get the job done.

Soft Elements

  • Shared Values: called “superordinate goals” when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.
  • Style: the style of leadership adopted.
  • Staff: the employees and their general capabilities.
  • Skills: the actual skills and competencies of the employees working for the company.

And the suggested workflow using the model :

  • Have a clear understand of the 7s elements individually. You may start with the sample checklist prepared by mindtools.
  • Conduct one for the current situation (as-is) and one for the future / target state (to-be).
  • Then, review the alignment between the 7s elements using a matrix analysis. Again, you can refer to a sample worksheet created by mindtools.
  • Identify gaps and inconsistencies.
  • Define changes required to ensure alignment and reinforcement among the 7s elements.

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