McKinsey 7S Framework is a popular management model developed in the 1980s by Mckinsey consultants Robert H Waterman Jr, Tom Peters, and Julien Philips. It is most often used as an organizational analysis tool to assess and monitor changes in the internal situation of an organization.
McKinsey 7S Framework is a tool that analyzes a firm’s organizational design by looking at 7 key internal elements: strategy, structure, systems, shared values, style, staff, and skills, in order to identify if they are effectively aligned and allow an organization to achieve its objectives.
In the context of project management, according to Mckinsey 7S Framework, there are 7 key internal elements the organizations should be effectively aligned, to deliver projects successfully. Below are those 7 elements.
Contents
2. Mckinsey Hard and Soft Elements
3. Mckinsey HARD Elements:
4. Mckinsey SOFT Elements:
McKinsey 7 Elements:
- Strategy
- Structure
- Systems
- Shared Values
- Skills
- Style
- Staff
We shall look into each of these elements in detail
Strategy – It is a plan developed by an organization to sustain and enhance its competitive advantage in the market. A good strategy is the one that’s clearly articulated, is long-term, and is reinforced by a strong vision, mission, and values.
Structure – It is about the division of activities in the organization and the various coordination mechanisms. It shows who is responsible for what works, and who is accountable to whom.
Systems – It is about the various formal processes and procedures followed in running an organization. These determine how the entire business is done.
Shared values –Simply, we can say that these are the foundation of an organization. These are the key aspects that guide the various decisions at the organization level down to the employee level. In the case of multiple view points that affect decision making, the views that are in line with the shared values precede over other view points.
Skills – These are the core capabilities and competencies of the organization in general, and employees in particular.
Style – In simple words, it is about the leadership style and management style of an organization’s leaders. It is about the behavior patterns of people in the organization. It is about how the organization is managed.
Staff – It’s about all the human resources of the organization- how many are needed, how they will be recruited, managed, motivated, rewarded etc.
The first 3 elements – Strategy, Structure, Systems, are called Hard Elements.
The last 4 elements – Shared Values, Skills, Style, Staff, are called Soft Elements.
Mckinsey Hard and Soft Elements
Mckinsey HARD Elements:
An organization will have these elements already in place. These elements are much easier to identify and manage compared to soft elements.
1) Strategy, 2) Structure, and 3) Systems are Mckinsey Hard Elements.
Mckinsey SOFT Elements:
These elements are difficult to describe, less tangible, and more influenced by the culture of an organization.
1) Shared Values, 2) Skills, 3) Style, and 4) Staff, are Mckinsey Soft Elements.
FAQs
The first three elements, which are 'strategy', 'structure', and 'systems', are hard elements because they influence the management in a company. On the other hand, the latter four, namely 'shared values', 'skills', 'style', and 'staff' are the soft element category as they are culture-oriented and rather abstract.
What are the soft skills and hard skills under McKinsey's 7S framework? ›
Understanding McKinsey 7S Model
The 7S Model specifies seven factors that are classified as "hard" and "soft" elements. Hard elements are easily identified and influenced by management, while soft elements are fuzzier, more intangible, and influenced by corporate culture.
What is the 7S of PM? ›
The 7S model is a framework that helps you analyze the alignment and performance of your project across seven key elements: strategy, structure, systems, skills, staff, style, and shared values.
What is McKinsey 7S simplified? ›
The McKinsey 7-S Model is a change framework based on a company's organizational design. It aims to depict how change leaders can effectively manage organizational change by strategizing around the interactions of seven key elements: structure, strategy, system, shared values, skill, style, and staff.
What are soft elements vs hard elements? ›
The hard elements are the tangible and measurable aspects, such as strategy, structure, and systems. The soft elements are the intangible and subjective aspects, such as skills, staff, style, and shared values.
What are 5 hard skills and soft skills? ›
List of hard and soft skills
| Hard skills | Soft skills |
|---|
| Logistics | Patience |
| Business development | Cleanliness |
| Engineering | Cooperation |
| Market research | Emotional Intelligence |
49 more rows4 days ago
Consulting isn't just about big words and flashy presentations; it's about having the right tools in your toolkit. And by tools, we mean skills. The perfect blend of hard skills (like number-crunching and data analysis) and soft skills (like teamwork and communication) can make you a superstar consultant.
What are key soft and hard skills? ›
Hard skills are related to specific technical knowledge and training while soft skills are personality traits such as leadership, communication or time management. Both types of skills are necessary to successfully perform and advance in most jobs.
What is the purpose of the 7S? ›
The 7S Model is a strategic tool that helps you analyze organizational gaps, inconsistencies, and alignment issues. The framework divides organizations into seven categories and shows how key elements impact one another. Both “hard” and “soft” elements in the 7S Model are equally important when implementing change.
What is spirit in 7S? ›
Spirit forms the 7S phase wherein top management and employees cooperate as a team in order to promote a culture of continual improvement of the previous six phases.
How to Implement the McKinsey 7S Model
- Step 1: Reviewing the Organizational Design. ...
- Step 2: Determine Your Optimal Organization Blueprint. ...
- Step 3: Determine the Necessary Realignments. ...
- Step 4: Executing the Action Plan. ...
- Step 5: Review Regularly.
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 7 S's are structure, strategy, systems, skills, style, staff and shared values.
Which company uses the McKinsey 7S model? ›
McKinsey 7S Model Example – Pepsi
The McKinsey 7S Model for Pepsi reveals its unique business structure.
What are the soft elements in the Amazon McKinsey 7S model? ›
Amazon McKinsey 7S model illustrates the ways in which seven key elements of businesses can be united to increase effectiveness. According to this model strategy, structure and systems represent hard elements, whereas shared values, skills, style and staff are soft elements.
What are hard elements? ›
The hard elements are tangible, easy to identify, and easier for management to immediately influence, such as strategy statements, corporate plans, organizational charts, and other documents. Strategy: your company's plan to enhance competitive advantage. Structure: how your company is organized and who reports to whom.
What is soft elements? ›
The soft elements are present in an organization in a more abstract way and can be found in the organizational culture. The hard elements in the 7S Framework are Strategy, Structure and Systems; the soft elements are Style, Shared Values, Skills and Staff.
What are the soft elements of marketing? ›
Soft elements: Staff, Skills, Style, Shared Values.
