McKency 7S Principles

The McKinsey 7S Framework is a management model developed by Tom Peters and Robert
Waterman of McKinsey & Company in the late 1970s. It is a strategic management tool that can
be used to assess and analyze the internal factors of an organization to determine its
effectiveness and the alignment of its various components. The seven components, or "S's," of
the McKinsey 7S Framework are:

1. Strategy: The plan or approach used by an organization to achieve its goals.

2. Structure: The way an organization is organized and divided into different departments or
units.
3. Systems: The processes, procedures, and information technology used by an organization
to carry out its operations.
4. Shared values: The beliefs, values, and culture of an organization, and the way they are
shared among employees.
5. Style: The leadership style and management practices of an organization.
6. Staff: The people who work for an organization and their skills, experience, and
capabilities.
7. Skills: The skills and knowledge required by an organization to carry out its operations
effectively.

The McKinsey 7S Framework is useful for analyzing how these different components of an
organization interact with each other and for identifying areas where changes can be made to
improve the overall effectiveness and alignment of the organization.

How to implement Mckinsey 7S principle

Implementing the McKinsey 7S principle involves a systematic and integrated approach to
managing an organization's resources, capabilities, and culture. The following steps can be
helpful in implementing the 7S framework:

1. Start by defining your organization's mission, vision, and goals. This will help you to
identify the key factors that will drive your strategy and the elements of the 7S framework
that are most relevant to your organization.
2. Conduct a thorough assessment of your organization's current state, including its
structure, systems, staff, skills, style, and shared values. This will help you to identify areas
of strength and weakness, and to determine where changes may be needed.
3. Analyze the interrelationships between the different elements of the 7S framework. For
example, consider how changes to your organization's structure might impact its systems,
staff, or style.
4. Develop a plan for addressing any gaps or weaknesses that you have identified. This may
involve making changes to your organization's structure, systems, or staffing, or
developing new training or development programs to enhance the skills and capabilities
of your employees.
5. Communicate the changes to your employees and other stakeholders, and work with
them to implement the changes effectively. This may involve providing training or other
support to help employees adjust to new systems or structures, and involving them in
decision-making and problem-solving processes.
 6. Monitor and evaluate the effectiveness of your implementation efforts, and make
adjustments as needed. This will help you to ensure that your organization is aligned with
its strategy and goals, and that its resources, capabilities, and culture are working
together effectively to support its success.

Overall, implementing the McKinsey 7S principle requires a strategic and holistic approach to
managing an organization, and a commitment to continuous improvement and learning. By
focusing on the key elements of the 7S framework and working to align them with your
organization's goals and objectives, you can improve your organization's performance and
achieve long-term success.

Dos and DOnts of McKinsey 7S framework

Dos of McKinsey 7S Framework:

 Do clearly define your organization's mission, vision, and goals before using the
framework.
 Do conduct a thorough assessment of your organization's current state to identify areas
of strength and weakness.
 Do analyze the interrelationships between the different elements of the framework to
develop a holistic understanding of your organization's operations.
 Do develop a plan for addressing any gaps or weaknesses that you have identified.
 Do communicate the changes to your employees and other stakeholders and work with
them to implement the changes effectively.
 Do monitor and evaluate the effectiveness of your implementation efforts and make
adjustments as needed.
 Do use the framework iteratively to continuously improve your organization's
performance and effectiveness.

Don'ts of McKinsey 7S Framework:

 Don't approach the framework as a one-size-fits-all solution. It should be adapted to the

specific needs and context of your organization.
 Don't focus too narrowly on any one element of the framework. It is important to
consider the interrelationships between all seven elements.
 Don't ignore the importance of shared values and culture in shaping your organization's
operations and effectiveness.
 Don't neglect the importance of effective communication and employee engagement in
implementing changes within your organization.
 Don't assume that the changes you make will have the intended impact. Ongoing
monitoring and evaluation are critical to ensure that your organization is aligned with its
strategy and goals.

Practicability of McKinsey 7S Framework

The McKinsey 7S framework has been widely used by organizations of all sizes and across various
industries for several decades. It has proven to be a practical and effective tool for assessing and
improving organizational performance by analyzing the interrelationships between the seven
elements of the framework.

One of the strengths of the framework is its holistic approach, which considers all seven elements
together and recognizes that they are all interconnected. This helps to avoid the risk of focusing
too narrowly on one area or element of the organization at the expense of others.

The framework also provides a clear and structured approach to organizational analysis, planning,
and implementation, which can help organizations to identify and address areas of weakness or
misalignment.

However, the practicality of the framework can also depend on the organization's size,
complexity, and culture. Some organizations may find it challenging to implement the framework
effectively, particularly if they have a rigid or hierarchical culture that is resistant to change.

Additionally, while the framework provides a useful starting point for organizational analysis, it
should not be seen as a one-size-fits-all solution. Organizations may need to adapt the
framework to their specific needs and context to ensure its practicality and effectiveness.

Overall, the McKinsey 7S framework is a practical and useful tool for organizations looking to
improve their performance and effectiveness, but it should be used in conjunction with other
analytical tools and approaches and adapted to the specific needs of the organization to achieve
optimal results.

Practical examples of McKinsey 7S Framework

Here are some practical examples of how the McKinsey 7S framework can be applied:

1. Mergers and Acquisitions: When two companies merge or one company acquires
another, it's important to assess how well the two organizations fit together. The
McKinsey 7S framework can be used to analyze the two companies' structures, systems,
staff, skills, style, and shared values to identify areas of compatibility and misalignment.
Based on this analysis, a plan can be developed to integrate the two organizations
effectively.
2. Organizational Change: When an organization is undergoing significant change, such as
restructuring or implementing a new strategy, the McKinsey 7S framework can be used to
assess how well the change aligns with the organization's existing structure, systems,
staff, skills, style, and shared values. This can help to identify areas of misalignment and
develop a plan for addressing them.
3. Performance Improvement: When an organization is looking to improve its performance,
the McKinsey 7S framework can be used to identify areas of strength and weakness
across the organization. For example, an analysis of the organization's systems may reveal
inefficiencies that can be addressed through process improvement or automation, while
an assessment of staff skills may reveal gaps that can be filled through training or hiring.
4. Culture Change: When an organization is looking to change its culture, the McKinsey 7S
framework can be used to identify the key values and beliefs that underpin the existing
culture and assess how they align with the organization's desired culture. This can help to
identify areas of resistance to change and develop a plan for shifting the culture in the
desired direction.
5. New Product Development: When an organization is developing a new product or
service, the McKinsey 7S framework can be used to assess whether the organization has
the necessary structure, systems, staff, skills, style, and shared values to support the
development and launch of the new product. This can help to identify areas that need to
be strengthened or developed to support the success of the new product.