Intro – How is the McKinsey 7S Model Used in Organizational Change Management? What are its Strengths and Weaknesses?
Some would argue that organizational change is happening on a continuous basis.
There are large changes, like the introduction of a new department, organizations moving to the cloud, system (ERP, CRM or HCM) integrations, and company expansions. As well as smaller changes, such as adding a job duty to your customer support team or improving business processes.
Companies have multiple moving parts that can be impacted by a change. Even the smallest change can set off a ripple throughout an organization. Understanding all the pieces of business that can be impacted by change is at the heart of the McKinsey 7S framework.
The 7S model McKinsey introduced back in the late 1970s takes a holistic look at what makes companies tick and how each element of a company needs to be in harmony for an organization to operate competitively and manage change successfully.
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This Article Provides an End-to-End View of All You Need to Know About McKinsey’s 7S Model
Key questions we’ll answer in this year’s objective overview of the McKinsey 7S framework include:
- What are the factors of the 7S model?
- Which of the following is the correct sequence of elements in McKinsey 7’S framework for business success?
- Is there a McKinsey 7S model PPT?
- Can I download a McKinsey 7S model PDF?
- Do you have a McKinsey 7S framework with company example?
- What are the ways a company can use the McKinsey 7S framework model?
- Can you list the McKinsey 7S model strengths and weaknesses?
What You’ll Accomplish
After reading this article, you’ll learn about McKinsey’s 7S framework in strategic management through a full McKinsey 7S analysis.
You’ll also find out how the 7S model McKinsey developed is used for organizational analysis and in change management projects.
Bonus: We have a downloadable McKinsey 7S framework PPT and McKinsey 7S framework PDF that you can use to explain this McKinsey change management method to others.
Analysis of McKinsey 7S Model Example
Rather than get into a detailed roadmap, the McKinsey change management model focuses on both “hard” and “soft” organizational elements that need to be considered when driving change or as a basis for change.
The McKinsey 7S model example has been used by large and small organizations alike as a way to stay in touch with all aspects of their company, some of which may not be immediately apparent when planning a change project.
Is the McKinsey 7S example right for you? Is it going to be detailed enough to help with your change management project?
We’ve gone through the most frequently asked questions about the McKinsey 7S framework example and will be answering those here.
Note: Some people may search out “7S model van McKinsey.” This is not a person, rather the searches appear to be in Dutch, and “van” is simply Dutch for “of” or “from.”
What are the Seven S’s for Successful Management?
The McKinsey 7S example of organizational management is designed quite differently than other change management models. It includes seven factors that need to be in balance for a healthy and competitive organization.
Rather than focusing on a roadmap to change or emphasize one factor over another, the McKinsey 7S example stresses that the coordination of these seven critical components of a company is what’s most important in a change strategy.
We’ll go into each factor in more detail shortly, but to get you started, here are the seven factors of the McKinsey 7S framework example:
- Shared Values (soft)
- Skills (soft)
- Staff (soft)
- Strategy (hard)
- Structure (hard)
- Style (soft)
- Systems (hard)
We’ve alphabetized the seven factors in the McKinsey 7S framework example above and also noted which are considered “hard elements” and which are considered “soft elements.”
Hard Elements are more easily defined and formalized, while Soft Elements can be more difficult to define since they deal with things like attitudes and work styles.
Now, if you search “7S model van McKinsey” or “McKinsey 7S model PPT” trying to find the right sequence for each of those seven factors, you won’t find one.
We’ll explain why in the next section.
What is 7S Methodology? Where Did it Come From?
Let’s start with where the McKinsey 7S framework came from, which will help reveal some of the philosophy behind it.
The McKinsey 7S framework model was introduced in the late 1970s by two former McKinsey consultants, Thomas J. Peters and Robert H. Waterman, who featured it in the book In Search of Excellence. McKinsey is a well-known business consulting firm.
After studying business strategy and success, Peters put forth the idea at the heart of the McKinsey 7S analysis, which was that companies were missing several key factors that helped their organizations run effectively because they were only focusing on strategy.
These factors, rather than having an order of importance, were all equally important. They were like the Knights of the Round Table, where each component is equally necessary.
You’ll often find people searching for McKinsey’s 7S framework PPT or McKinsey strategy framework PDF because Peters originally put forth his larger concept in a 700-slide, two-day presentation to a large corporation.
Of course, that long of a presentation wouldn’t work for all McKinsey clients, so the concept was condensed into the seven factors we find in McKinsey’s 7S framework in strategic management.
You can rest assured that our downloadable 7S McKinsey PPT and McKinsey 7S model PDF don’t have nearly as many slides as did Peters’ initial presentation.
How Do You Understand 7S Framework?
There are both advantages and disadvantages of McKinsey 7S model, which we’ll get into in more detail later in the article. But, one of the biggest issues people find with the 7S model McKinsey put out is that it’s hard to get your head around.
It doesn’t follow a clear path of “do this step, then do that step” like other change management models you find. One of the reasons is that the McKinsey change management model wasn’t specifically designed for change management, but more for business strategy in general.
The McKinsey 7S model example is more of a thermometer to take the temperature of your organization than a road map to follow for a change project.
If one of the seven factors of the McKinsey 7S example is out of balance, that indicates your organization isn’t healthy. Something needs to change.
To reiterate, the most important thing to remember about the McKinsey 7S framework example is that each of the seven factors is equally important.
McKinsey 7S Framework Model
The easiest way to wrap your head around a McKinsey 7S framework with company example that you may be reading is to think of the seven factors as a circle or constellation rather than a ladder with steps.
What is the McKinsey 7S Model Used For?
A McKinsey 7S analysis can be done for a variety of reasons. It’s often mentioned for change management, and you may run across this when searching for a McKinsey 7S framework PPT or McKinsey 7S framework PDF.
However, because McKinsey’s framework in strategic management isn’t really a set of step-by-step instructions, but rather a general methodology for checking that a business is in balance, it can be used for different needs within an organization.
When looking at McKinsey 7S model strengths and weaknesses, one of the strengths is that it can be used in multiple ways.
Some of the ways that companies use the 7S model McKinsey developed are:
- Boost productivity and efficiency
- Keep a change project on track
- Identify areas in a business holding the company back
- Create a new business strategy
- Align departments during mergers or acquisitions
- Implement employee improvement strategies
- Determine how to become more competitive
- Uncover areas of opportunity
What are the Seven Factors in the Seven S Model?
Now, let’s get a little deeper into what each of those seven factors in the McKinsey change management framework mean and how they apply to a business change strategy.
The information we’re providing below is also included in the downloadable 7S McKinsey PPT and McKinsey strategy framework PDF that you’ll find further down in this AGS article.
First, let’s address one of the most common questions that people ask when reviewing the McKinsey 7S model example.
Which of the Following is the Correct Sequence of Elements in McKinsey 7’S Framework for Business Success?
If you’re used to using other change management models, you’ll most likely be looking for the sequence of which elements in the McKinsey 7S example to do first, second, etc.
There is no sequence. The McKinsey 7S framework example provides you with several factors that need to be in alignment for your organization to be healthy and thrive. However, there is no specific order to address each element; you simply need to make sure they’re all addressed at some point in your project.
- A Proven Change Approach to Managing Organizational Change
- Benefits of Organizational Change Management
- Change Management Success Factors
One of the factors in the McKinsey 7S framework is the shared values of the company. This is your corporate culture, belief system, and what you’re known for.
What does your company want to achieve? What’s its mission? Its reputation?
These are the kinds of questions that are answered in your shared values, and that need to be in alignment with the other 6 elements of the McKinsey 7S analysis.
If your company is known for being an innovator that blazes trails, do the processes you use also reflect that? If, for example, you are using antiquated systems to support your customer service activities, then your Systems factor would be out of balance with your Shared Values factor.
When it comes to applying McKinsey’s 7S framework in the strategic management of change, you want to ensure that your change project activities are reflecting your corporate culture and shared values.
This area of the 7S model McKinsey developed includes both organizational skills and individual employee skills.
You want to ensure that your team has the skills necessary to keep you competitive. And in the case of a change project, provide proper employee training to give your team the skills needed for the new process.
Another part of this factor in the McKinsey change management framework is to decide which skills should be kept in house and which ones would be more efficient as outsourced skills.
Your staff is another important element in the McKinsey 7S model example. You have to ensure your staff is balanced and diverse, so you’ll have economies of scope.
Other important considerations when thinking of staff are your hiring practices, turnover, and staff policies that can help or hurt your business. Doing a stakeholder analysis at the start of a change project can help you understand where everyone stands.
As an example, if you’re a U.S. company developing a change project that involves expanding your operations to Singapore, the following would be staff imbalances with other areas of your business (systems, processes, skills) that you would need to address:
- If your hiring practices didn’t include Singapore related job posting sites
- If you did not have anyone on your team that was familiar with the country
- If your phone systems did not include local Singapore phone numbers
If you’re searching online for McKinsey’s 7S framework PPT or a McKinsey 7S model PDF, you might run across certain sites saying that “strategy” is the most important of the 7 S’s. However, in reviewing the McKinsey 7S example on McKinsey’s website, they’re clear that all seven elements are equally important.
McKinsey describes strategy and organization as “two sides of the same coin.” Your strategy is how you plan to move your company toward its goals, while also remaining adaptive.
When it comes to a change project, the strategy element in the McKinsey 7S example would be the detailed plan or change management roadmap you follow to get from your current state to your desired future state.
This roadmap strategy needs to be in alignment with all the other 6 factors within the McKinsey 7S framework.
The structure element in the McKinsey 7S framework example refers to your classic organizational structure or chain of command. These are also known as authority relationships.
Who needs to sign off on a change communication? Who should you alert if your timeline is changing? If your organization’s structure is complex, the answer to those questions might not be clear to employees managing a change.
McKinsey 7S Example of Change Management
Style is related to culture but is more about a personal managerial style or the culture a certain department might operate under. For example, some departments may be more open to outside ideas than others.
Style is one of the more difficult areas of the McKinsey 7S analysis to get on top of, because it’s very personal, and changing people’s managerial styles requires helping them become more self-aware.
This is where you will run into: “But that’s the way we do it around here” and similar types of attitudes that are resistant to change, so it’s a vital part of the McKinsey 7S framework model to address.
Having a resistance management strategy can help bring this factor into balance with others.
Systems refer both to the physical systems your team works with and the processes and workflows you have in place. What happens within your IT infrastructure after an order is placed at your company or how your HR department handles time-off requests are both systems.
You can think of the systems element of McKinsey’s 7S framework in strategic management as “how work gets done.”
When planning a change, you’ll want to ensure systems, including technology and processes, are aligned with the other six factors to drive efficiency and productivity.
What is the Most Important S in the 7S Model?
If you’re searching on “7S model van McKinsey” in Dutch, “McKinsey 7S framework PDF” or any similar search term, you’ll see that all seven elements in the 7S Model McKinsey developed are treated equally.
The main point of the McKinsey change management framework using 7S is that these are seven equally important elements of your organization. And that they need to be working together in harmony.
How Do I Use McKinsey 7S Framework?
When you’re considering the advantages and disadvantages of McKinsey 7S model, you’re likely to wonder, “How do I use it?”
There are seven elements that are pretty straight forward, but what do you do with them to drive an organizational change project?
You’ll find some helpful suggestions in our McKinsey 7S model PPT and McKinsey strategy framework PDF, and we’ll go through a series of steps below that you could use.
Steps for Using the 7S model McKinsey developed for a change management project:
- Do an impact assessment to see how each of the seven factors in the McKinsey 7S model example would be impacted by the change.
- Create your change plan to address those impacts and with a goal to maintain balance.
- Throughout your change project, check each of the seven factors to ensure each is being brought into a “post change” harmony, adjust strategy as needed.
- Once your change project is complete, review each of the McKinsey 7S example factors to ensure they’re in balance.
McKinsey 7S Framework with Company Example
Because of the nebulous nature of the McKinsey 7S framework example, it can be difficult to know where to start or how to use this model in a sequence needed for change management or company improvement.
We’ve found a few different links to McKinsey 7S framework with company example to help you with references of how other companies applied this model to their projects.
- McKinsey 7S framework model with Coca-Cola
- Ithaca Beer Company McKinsey 7S model PDF
- Starbucks McKinsey change management example
How Do I Apply the McKinsey 7S Model Example to My Change Project?
Here is a brief example of how to use the McKinsey 7S framework model to keep your company in balance during a change project.
Project: Moving from a fully onsite staff to 50% remote working staff
|McKinsey 7S Factor||Current State||Desired Future State||Need to Do This to Get There or Maintain Balance|
|Foster team connection using cloud|
Ensure phone system is cloud-based
|Skills||Proficient at current applications||Add proficiency in remote cloud programs|
Add new skills for remote working protocols
|Establish training plan and evaluation method for new skills needed for remote workers|
|Staff||No one has worked remotely before||Have staff member with experience managing remote teams||Hire appropriate candidate with remote supervisory experience|
|Strategy||Current strategy is to serve customers as we have for 40+ years||Strategy that involves serving customers “anywhere, anyplace”||Develop a plan that includes marketing and processes to enable expansion of strategy to include remote teams.|
|Structure||Structure includes clear chain of command for onsite employees||Structure to be just as clear, but include chain of command for both remote and onsite employees||Review leadership/managers and come up with structure changes needed.|
|Style||Managers are used to having teams in the same building.||Managers treating onsite and remote employees the same as far as job duties, importance, promotions, etc.||Leadership training needed to indoctrinate managers and systems to support real-time communication for remote teams.|
|Systems||Workflows don’t currently involve remote employees, but are cloud-based; Technology supports remote teams.||Technology and workflows can be used seamlessly by onsite and remote teams.||Update any workflows needed and get feedback on processes to ensure they’re sufficient to support remote teams.|
Advantages and Disadvantages of McKinsey 7S Model
Now, let’s take a look at the McKinsey 7S model strengths and weaknesses. Not all companies are going to find the 7S model McKinsey put together to be easy to follow or implement.
Here are the main advantages and disadvantages of McKinsey’s 7S model.
McKinsey Change Management Model Advantages:
- It Can Be Applied Widely: The flexibility of the 7S model McKinsey promotes is one of its biggest strengths. It can be applied whether you’re going through change or to help identify weaknesses and opportunities in your organization.
- It Takes a Holistic View: The framework by McKinsey is unique in that it focuses on harmony and balance within your organization. It helps companies to identify areas they may not see as connected and view them holistically when it comes to change.
- People & Processes are Included: Some change management models focus heavily on people, and others focus more on processes. The McKinsey change management model includes both, ensuring both the human and technical elements of change management are kept in focus.
McKinsey Change Management Model Disadvantages:
- There is No Roadmap to Follow: A big drawback with the McKinsey 7S model example is that it does not give you steps or any roadmap to follow for a change management program. It’s more of a general method to ensure your organizational elements are in balance.
- It Can Be Tedious for Change Management: If you have to check every step of your change management process across each of the 7 S’s in the McKinsey 7S model, you would hardly have time to do anything else. Unless you have a small company and project, it can be tedious to use for change management planning.
- It’s Better as a Gauge Than a Strategy: The McKinsey 7S example is better when used as a gauge at the beginning and end of a change management project to ensure alignment of the 7S areas of your organization. Using a different change management tool or model makes more sense for your actual change strategy and planning.
PowerPoint & PDF Downloads | What are the Components of the 7S Framework?
Are you looking for a McKinsey 7S framework PPT that provides a comprehensive overview of the components in the 7S model in an easy-to-read format?
We’ve put together a free downloadable 7S McKinsey PPT and exported that to a downloadable McKinsey 7S framework PDF. You can access both of these below.
Our McKinsey’s 7S framework PPT and McKinsey strategy framework PDF include a shortened version of the information in this article. We’ve also included several helpful visuals in the McKinsey 7S model PPT and PDF.
Conclusion – 2020 Review: Everything You Need to Know About McKinsey 7S Model
The McKinsey 7S model example is a powerful tool to look in-depth at your organization and identify areas where it may not be operating in harmony. It offers a unique insight into seven key areas that other change models don’t explore in the same way.
The biggest problem with using the 7S model McKinsey developed is that it’s not well suited as a step-by-step strategy for change management. It’s much better when used as a thermometer to “check the temperature” of your company and see where things may be problematic and to identify areas that need change.
The McKinsey 7S example can be helpful at the start and finish of a change project as a gauge to keep those seven elements of your organization in balance after a change project occurs. In this way, it’s flexible to use alongside another change management model.
Even if you don’t use the McKinsey change management framework for your change projects, it’s still a very helpful framework to learn and can give you deeper insight into the different moving parts of your organization.
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Authors: Ogbe Airiodion (Senior Change Management Lead) and Francesca Crolley (AGS Cloud Content Producer)
Content on Airiodion Global Services (AGS)'s Airiodion.com website is copyrighted. Questions? Contact Airiodion Global Services (AGS) .
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