McKinsey 7-S Framework – Part of Our Lean TQM Toolbox Series

The problem: You need to develop your strategy, operating plans and budget for next year, but your organisational design and effectiveness are in question.

The McKinsey 7-S Framework model can be applied to many situations where organisational design, alignment and coordination are needed, such as:

• To facilitate organisational change
• To help implement new strategy
• To identify how each area may change in future
• To facilitate the merger of organisations

The basic premise of the 7S Framework is that there are seven internal elements of an organisation that need to be aligned so it can be successful;

1. Strategy: the company’s plan to enhance competitive advantage
2. Structure: how the company is organised and who reports to whom
3. Systems: procedures, processes, and routines of staff that characterise how the job is done
4. Shared Values: the core values that are reflected in the corporate culture and individual work ethic
5. Style: typical behaviour patterns of groups such as managers and other professionals
6. Staff: the company’s employees and their general capabilities
7. Skills: the organisation’s core competencies and distinctive capabilities

The interdependency of the elements means that if one changes, the other six elements should be analysed to see how the change affects them and to determine how each may need to change to keep organisational goals aligned.

The subjectivity surrounding the alignment of the seven key elements explains why this model seems to have a complicated application. However, our simplified top-down approach will be useful in breaking through the complexity.

We have partnered with our sister organisation, the Australian Supply Chain and Logistics (ASCAL) Institute to bring you another tool in our Lean-TQM Toolbox Series. Click the link for a simple step-by-step process brief.

Click here for the PDF Report: McKinsey 7-S Framework