Understanding and Using the McKinsey 7-S Framework

The 7-S model was first mentioned in the Art of Japanese Management by Richard Pascale and Anthony Athos in 1981.  At the same time, Tom Peters ( a genius and strategic maestro) and Robert Waterman were exploring what made companies excellent.  This model was created by all four authors in 1978 and was adopted by McKinsey consulting a a basic business tool to evaluate and help improve company performance.

The 7-S model also appears in In Search of Excellence (a must read) by Peters and Waterman.  7-S describes the 7 interdependent factors to organize a company in a holistic and effective way.  Together these factor determine the way in which a corporation operates. (Take note all you COO's reading this blog.) CEO's, COO's and managers in general should consider the 7 factors below in order to successfully implement a strategy no matter how big or small and whether it is a sales, marketing or technology strategic plan.

1. Shared Values: What does the organization stand for and believe in?  What are the central beliefs and attitudes? (Strategic Intent)

2. Strategy: What are the plans for allocating scarce resources, over time, to reach identified goals?

3. Structure: The way in which an organization units/divisions relate to each other: centralized, functional, divisional (top down) or decentralized; a matrix, network, or a holding.

4. Systems: The procedures, processes and routines that characterize how the work should be done: financial systems, recruiting, promotion, and performance appraisal systems, etc.

5. Staff: Numbers and types of personnel within the organization.

6. Style: Cultural style of the organization and key managers behave in achieving goals (management style).

7. Skills: Distinctive capabilities of personnel or organization as a whole (core competencies).

Consider ways you might be able to leverage these factors to enhance the implementation of your strategies at your SMB or Fortune 500 division.  McKinsey is the global strategic thought leader and using their ideas could help you stand on the shoulders of this giant to improve your strategic outcomes.