mckinsey 7s framework case study

Enduring Ideas: The 7-S Framework

When introduced in the late 1970s , the 7-S framework was a watershed in thinking about organizational effectiveness. A previous focus of managers was on organization as structure—who does what, who reports to whom, and the like. As organizations grew in size and complexity, the more critical question became one of coordination.

Featured in the book In Search of Excellence , by former McKinsey consultants Thomas J. Peters and Robert H. Waterman, the framework maps a constellation of interrelated factors that influence an organization's ability to change. The lack of hierarchy among these factors suggests that significant progress in one part of the organization will be difficult without working on the others.

Some 30 years later, 7-S remains an important tool to understand the complexity of organizations. Today, more than ever, structure alone isn't organization.

In the first in a series of interactive presentations, Lowell Bryan, a director in McKinsey's New York office, reflects on 7-S.

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Enduring Ideas: Classic McKinsey frameworks that continue to inform management thinking

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McKinsey 7S model of Nokia – where the company went wrong

From a cell phone pioneer to being acquired by microsoft in 2013, nokia is a case study of organizational failure. let’s analyze where the company went wrong by applying mckinsey 7s model., mckinsey 7s model is a business framework which can be used to analyze organizational effectiveness. according to the mckinsey model, the organization is a complex ecosystem consisting of seven interconnected factors: structure , strategy , skills , staff , systems , style and shared values . .

The model is also a blueprint for organizational change.

To show you how you can use the McKinsey model 7S for the benefit of your organization, I will analyze mobile pioneer Nokia at the time of its demise, namely 2011-2013.

Here’s a brief background story:

In October 1998, Nokia became the best-selling mobile phone brand in the world with an operating profit of almost $4 billion. The best-selling mobile phone of all time, the Nokia 1100, was created in 2003. Five years later, Apple introduced the iPhone. By the end of 2007, half of all smartphones sold in the world were Nokias, while Apple’s iPhone had a mere 5% share of the global market.

In 2010, attempting to drive Apple out of the market, Nokia launched the “iPhone killer”. The model failed to achieve its goal and was the beginning of the end for Nokia. From that moment on, Nokia embarked on a downward spiral of low-quality phones. In just six years, the market value of Nokia declined by about 90%. The organization was acquired by Microsoft in 2013.

Now that you’re familiar with Nokia’s failure story, let’s analyze the organization before Microsoft made its move to acquire it by applying the McKinsey 7S model.

In my opinion, here are the factors that required immediate change: Structure, Style, Skills, Staff and Strategy.

McKinsey 7S model of Nokia

Mckinsey 7s model of nokia – structure .

Nokia of the era was a top-down line structure organization.

In public speeches given by the organization’s top executives, agility and being nimble were mentioned as key competitive advantages.

But it was all talk. The organization’s top management was living in a bubble, disconnected from the company’s technology development departments. Communication was one-way and teams were not empowered to contribute to the organization’s strategy.

To adapt to the new technological environment and compete with Apple , a powerful tech company, Nokia should have taken steps to change its structure from top-down hierarchical to decentralized and agile .

Instead of organizing employees in silos, with no communication and collaboration between them, the company should have placed its employees in teams, with every team working to achieve a common goal.

Team members should have been empowered to speak up, come up with solutions and work independently.

McKinsey 7S Model of Nokia – Style

In McKinsey’s model style refers to culture. What was Nokia’s culture at that time?

As per the 2015 paper Distributed Attention and Shared Emotions in the Innovation Process: How Nokia Lost the Smartphone Battle , Nokia suffered from organizational fear, status ( We are no 1 ), in-house politics and temporal myopia.

Top managers had business backgrounds and lacked technological competence. Employee morale was low.

As the saying goes, culture eats strategy for breakfast. Top management should have adopted a transformational leadership style where the leader’s goal is to transform the organization so that it’s constantly improving.

Transformational leaders create a vision of the future that they share with their teams so that everyone can work together toward a shared goal and vision. Technology is ever-changing. Technology companies must embrace change in order to stand the test of time.

Transformational leadership would have been the best fit for Nokia because it fosters creativity and innovation through collaboration. This type of culture builds and maintains employee motivation and satisfaction and is effective in facilitating organizational change.

McKinsey 7S Model of Nokia – Skills

Nokia didn’t lack talent and didn’t have a skills gap in the company. There were no gaps in know-how or competence.

At its peak, Nokia had one of the top highly-skilled tech workforces in the world.

The company’s hardware and software engineers had designed one of the most successful and iconic cell phones in the world, there’s no doubt about it.

The problem was the top management. Between 2007 and 2010, the position of the Chief Technology Officer (CTO) disappeared from the top management team. Technical managers had left the company and new hires had no technical skills making it difficult for them to understand the technological challenges and the direction in which the company should be heading.

Conversely, top management members at Apple were all engineers. Nokia should have focused on increasing tech skills among C-level executives.

McKinsey 7S Model of Nokia – Staff

At Nokia, people were talking business instead of technology which is quite surprising for a software company.

The organization should have found ways to motivate and nurture its employees appropriately.

McKinsey 7S Model of Nokia – Strategy

Struggling to compete with Apple and adapt to the technological developments that were disrupting the business environment at that time, Nokia top management had to choose between three strategies: optimizing costs and volume, maximizing performance, or maximizing security.

They decided to go with cost optimization which made it impossible to achieve performance in software.

With Apple going for technological innovations and excellency, needless to say, they made the wrong decision.

At its peak, Nokia manufactured 40% of the world’s mobiles. The company had the human resources ( skills and staff factors ) required to keep innovating and increasing its market share.

Unfortunately, the company’s leadership ( style factor ) lacked core competences and vision necessary to drive change within the company.

They didn’t allow the tech talent in the company to contribute with valuable insights to important decisions. The company chose the wrong strategy which ultimately lead to its demise.

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McKinsey 7S Model

Definition of the McKinsey 7S Model

McKinsey 7S model is a tool that analyzes company’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 the organization to achieve its objectives.

What is the McKinsey 7S Model

McKinsey 7S model was developed in the 1980s by McKinsey consultants Tom Peters, Robert Waterman and Julien Philips with help from Richard Pascale and Anthony G. Athos. Since its introduction, the model has been widely used by academics and practitioners and remains one of the most popular strategic planning tools.

It sought to present an emphasis on human resources (Soft S), rather than the traditional mass production tangibles of capital, infrastructure and equipment, as a key to higher organizational performance.

The goal of the model was to show how 7 elements of the company: Structure, Strategy, Skills, Staff, Style, Systems, and Shared values, can be aligned together to achieve effectiveness in a company.

The key point of the model is that all the seven areas are interconnected and a change in one area requires change in the rest of a firm for it to function effectively.

Below you can find the McKinsey model, which represents the connections between seven areas and divides them into ‘Soft Ss’ and ‘Hard Ss’. The shape of the model emphasizes the interconnectedness of the elements.

The image shows McKinsey 7s model, where 7 organization elements are interconnected with each other.

The model can be applied to many situations and is a valuable tool when organizational design is at question. The most common uses of the framework are:

To facilitate organizational change.
To help implement a new strategy.
To identify how each area may change in the future.
To facilitate the merger of organizations.

In the McKinsey model, the seven areas of organization are divided into the ‘soft’ and ‘hard’ areas. Strategy, structure and systems are hard elements that are much easier to identify and manage when compared to soft elements.

On the other hand, soft areas, although harder to manage, are the foundation of the organization and are more likely to create a sustained competitive advantage.

Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in the market. What does a well-aligned strategy mean in the 7S McKinsey model?

In general, a sound strategy is one that’s clearly articulated, long-term, helps to achieve a competitive advantage, and reinforced by a strong vision, mission, and values.

But it’s hard to tell if such a strategy is well-aligned with other elements when analyzed alone. So the key in the 7S model is not to look at your company to find the great strategy, structure, systems and etc. but to look if it’s aligned with other elements.

For example, a short-term strategy is usually a poor choice for a company, but if it’s aligned with the other 6 elements, then it may provide strong results.

Structure represents the way business divisions and units are organized and includes the information on who is accountable to whom. In other words, structure is the organizational chart of the firm. It is also one of the most visible and easy-to-change elements of the framework.

Systems are the processes and procedures of the company, which reveal the business’ daily activities and how decisions are made. Systems are the area of the firm that determines how business is done and it should be the main focus for managers during organizational change.

Skills are the abilities that a firm’s employees perform very well. They also include capabilities and competencies. During organizational change, the question often arises of what skills the company will really need to reinforce its new strategy or new structure.

Staff element is concerned with what type and how many employees an organization will need and how they will be recruited, trained, motivated and rewarded.

Style represents the way the company is managed by top-level managers, how they interact, what actions do they take and their symbolic value. In other words, it is the management style of the company’s leaders.

Shared Values

Shared Values are at the core of McKinsey’s 7S model. They are the norms and standards that guide employee behavior and company actions and thus, are the foundation of every organization.

The authors of the framework emphasize that all elements must be given equal importance to achieve the best results.

Using the McKinsey 7S framework

As we pointed out earlier, the McKinsey 7S framework is often used when organizational design and effectiveness are in question. It is easy to understand the model but much harder to apply it to your organization due to a common misunderstanding of what should well-aligned elements be like.

We provide the following steps that should help you to apply this tool:

Step 1. Identify the areas that are not effectively aligned

During the first step, your aim is to look at the 7S elements and identify if they are effectively aligned with each other. Normally, you should already be aware of how 7 elements are aligned in your company, but if you don’t, you can use the checklist from WhittBlog to do that.

After you’ve answered the questions outlined there, you should look for the gaps, inconsistencies, and weaknesses between the relationships of the elements. For example, you designed a strategy that relies on quick product introduction, but the matrix structure with conflicting relationships hinders that, so there’s a conflict that requires a change in strategy or structure.

Step 2. Determine the optimal organizational design

With the help of top management, your second step is to find out what effective organizational design you want to achieve. By knowing the desired alignment, you can set your goals and make the action plans much easier.

This step is not as straightforward as identifying how seven areas are currently aligned in your organization for a few reasons.

First, you need to find the best optimal alignment, which is not known to you at the moment, so it requires more than answering the questions or collecting data.

Second, there are no templates or predetermined organizational designs that you could use and you’ll have to do a lot of research or benchmarking to find out how other similar organizations coped with organizational change or what organizational designs they are using.

Step 3. Decide where and what changes should be made

This is basically your action plan, which will detail the areas you want to realign and how you would like to do that. Suppose you find that your firm’s structure and management style are not aligned with the company’s values. In that case, you should decide how to reorganize the reporting relationships and which top managers the company should let go or how to influence them to change their management style so the company could work more effectively.

Step 4. Make the necessary changes

The implementation is the most important stage in any process, change or analysis and only the well-implemented changes have positive effects. Therefore, you should find the people in your company or hire consultants that are the best suited to implement the changes.

Step 5. Continuously review the 7S

The seven elements: strategy, structure, systems, skills, staff, style and values are dynamic and change constantly. A change in one element always has effects on the other elements and requires implementing a new organizational design. Thus, continuous review of each area is very important.

Example of McKinsey 7S Model

We’ll use a simplified example to show how the model should be applied to an existing organization.

Current position #1

We’ll start with a small startup which offers services online. The company’s main strategy is to grow its share in the market. The company is new, so its structure is simple and made of a few managers and bottom-level workers who undertake specific tasks. There are a very few formal systems, mainly because the company doesn’t need many at this time.

So far, the 7 factors are aligned properly. The company is small and there’s no need for a complex matrix structure and comprehensive business systems, which are very expensive to develop.

McKinsey 7S Example (1/3)

Current position #2

The startup has grown to become a large business with 500+ employees and now maintains a 50% market share in the domestic market. Its structure has changed and it is now a well-oiled bureaucratic machine.

The business expanded its staff and introduced new motivation, reward and control systems. Shared values evolved and now the company values enthusiasm and excellence. Trust and teamwork have disappeared due to so many new employees.

The company expanded and a few problems came with it. First, the company’s strategy is no longer viable. The business has a large market share in its domestic market, so the best way for it to grow is either to start introducing new products to the market or to expand to other geographical markets. Therefore, its strategy is not aligned with the rest of the company or its goals. The company should have seen this but it lacks strategic planning systems and analytical skills.

Business management style is still chaotic and it is a problem of top managers lacking management skills. The top management is mainly comprised of founders who don’t have the appropriate skills. New skills should be introduced to the company.

McKinsey 7S Example (2/3)

Current position #3

The company realizes that it needs to expand to other regions, so it changes its strategy from market penetration to market development. The company opens new offices in Asia, North and South America.

The company introduced new strategic planning systems and hired new management, which brought new analytical, strategic planning, and, most importantly, managerial skills. The organization’s structure and shared values haven’t changed.

Strategy, systems, skills and style have changed and are now properly aligned with the rest of the company. Other elements like shared values, staff and organizational structure are misaligned.

First, the company’s structure should have changed from a well-oiled bureaucratic machine to a division structure. The division structure is designed to facilitate operations in new geographic regions. This hasn’t been done and the company will struggle to work effectively.

Second, new shared values should evolve or be introduced in an organization because many people from new cultures come to the company and they all bring their own values, often very different than the current ones. This may hinder teamwork performance and communication between different regions. Motivation and reward systems also have to be adapted to cultural differences.

McKinsey 7S Example (3/3)

We’ve shown a simplified example of how the McKinsey 7S model should be applied. It is important to understand that the seven elements are much more complex in reality, and you’ll have to gather a lot of information on each of them to make any appropriate decision.

The model is simple, but it’s worth the effort to do one for your business to gather some insight and find out if your current organization is working effectively.

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5 thoughts on “McKinsey 7S Model”

For sure this article is one of the most useful and complete guidelines on 7S model.

Thanks Alireza Nami

Hello! Thanks for this. The article has explained comprehensively well how the 7S McKinsey framework works. 🙂 The case studies illustrated clearly how alignment should be investigated.

Thank so much. Tina Saulo

Can we adopt McKinsey 7S Model for gap analysis of data generation system or simply for data gap analysis of SDGs?

Very well explained. Very simple to follow.

Wanted to know how does McKinsey 7S Model differentiate from EFQM Model.

Excellent and accessible insight on the application of the model

How to Use the McKinsey 7S Framework: Strategic Alignment Essentials

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The McKinsey 7S Framework is a comprehensive tool for analyzing and improving organizational effectiveness.

Developed in the late 1970s by McKinsey & Company consultants, it provides a framework for examining the complex interrelationships within an organization.

This model focuses on seven key internal elements that need to be aligned for a company to reach its strategic objectives and perform effectively.

Understanding how to use the McKinsey 7S Framework is crucial for leaders and managers seeking to implement changes or to better align their organizations with their strategic visions.

Applying the 7S Model involves evaluating and aligning the seven elements, which are categorized as either ‘hard’ or ‘soft’. The ‘hard’ elements refer to strategy, structure, and systems, which are often quantifiable and can be directly influenced by management.

On the other hand, the ‘soft’ elements, which consist of shared values, skills, style, and staff, are more rooted in the company’s culture and are less tangible, yet they have a significant impact on an organization’s success.

Balancing these elements helps to diagnose problems, guide organizational change, and enhance overall performance.

Key Takeaways

The McKinsey 7S Framework is integral to strategic planning and organizational effectiveness.
It consists of seven interrelated elements divided into ‘hard’ and ‘soft’ categories.
Proper application ensures alignment of the elements to achieve business objectives.

Understanding the McKinsey 7S Framework

The McKinsey 7S Framework is an organizational model that analyzes seven distinct aspects of a business for alignment and integration. It emphasizes the interconnectedness of the elements that determine organizational effectiveness.

Overview of the Hard and Soft Elements

Hard Elements:

Structure : The architecture of an organization, detailing the hierarchy and network of relationships.
Strategy : The plan devised to maintain and build competitive advantage.
Systems : The procedures and processes that underpin day-to-day activities.

Soft Elements:

Skills : The capabilities and competencies of the company’s employees.
Staff : The human resources and how they are managed and developed.
Style : The characteristic way in which the organization and its leaders communicate and behave.
Shared Values : Formerly called “Superordinate Goals,” these are the core values that are deeply ingrained in the company’s culture and serve as a guiding compass.

Origins and Evolution of the Framework

Introduced in the late 1970s by McKinsey consultants Tom Peters and Robert Waterman, the McKinsey 7S Framework was a response to the simplification of corporate strategy concepts that were prevalent at the time.

Its development coincided with research for their book, “In Search of Excellence,” and was designed to be a comprehensive tool to diagnose and organize a company’s effectiveness and ability to change. Since its inception, the framework has evolved to recognize the dynamic and complex nature of organizations, underpinning its enduring relevance in the strategic planning space.

Assessing the Seven S Elements

To effectively implement the McKinsey 7S Framework, it’s critical to thoroughly evaluate each of the seven elements to understand their current state and the impact they have on the organization’s ability to reach its objectives.

Strategy Analysis

An organization’s strategy is its plan for outstripping competitors and achieving market leadership. Analysis involves examining the clarity and coherence of strategic goals, how well they respond to market dynamics, and their alignment with internal capabilities.

Structure Review

The structure of an organization determines how tasks and responsibilities are allocated. In reviewing structure, one should analyze the hierarchy, the distribution of authority, and the efficiency of communication channels to ensure they support the organization’s goals.

Systems Evaluation

Systems are the procedures and routines that underpin daily operations. Evaluating these requires a look at information and management systems to ascertain if they are robust enough to support current and future strategies.

Shared Values Assessment

Central beliefs and attitudes, known as shared values , direct employee behavior. This assessment focuses on these core values and how deeply they are embedded within the organization’s culture.

Skills Analysis

Here, one assesses the skills available within the organization and whether they align with strategic demands. This involves not only evaluating the abilities employees possess but also identifying skill gaps that need to be filled.

Style Examination

The style refers to leadership approach and general work culture. Examination of style involves observing leadership behaviors and their effect on the organization’s tone and how decisions are made and executed.

Staff Analysis

Finally, analyzing staff looks at human resources in terms of numbers, competencies, and potential. This analysis explores whether the organization has the right people to meet strategic targets and adapt to changes in the market.

Applying the 7S Model

The McKinsey 7S Framework serves as a comprehensive guide for organizations seeking to enhance performance by aligning key elements. Through structured analysis and implementation, companies can develop strategies that adapt to change while maintaining coherency throughout their structures.

Strategic Planning and Alignment

Strategic planning within the 7S framework requires ensuring that the company’s strategy , structure, and systems are fully aligned . It involves assessing whether the current strategy is apt to meet organizational goals. They must formulate a clear action plan that is attuned to both internal capabilities and external opportunities.

Managing Organizational Change

When managing organizational change , leadership must evaluate and adjust the seven S elements to maintain equilibrium. Adapting management styles and organizational structure may be crucial as changes in one element often necessitate changes in others to sustain alignment .

Achieving and Sustaining Alignment

Achieving and sustaining alignment demands continuous monitoring and recalibration of the 7S components. Management is tasked with ensuring systems, shared values, and staff roles all coalesce to support the implementation of business strategies effectively.

Decision-Making and Problem-Solving

Effective decision-making and problem-solving hinge on the interconnectedness of the model’s elements. Leaders should use the 7S framework to identify areas where decisions can improve alignment and performance, thereby transforming challenges into actionable solutions.

Organizational Design and Effectiveness

The McKinsey 7S Framework provides a comprehensive approach to organizational design, focusing on aligning key elements for enhanced effectiveness. This section delves into the roles of organizational hierarchy, workflow, and human resources as cornerstones for productivity and talent management.

Examining Organizational Hierarchy

Organizational structure and hierarchy are vital for clarifying roles, responsibilities, and reporting lines within an organization. A well-defined hierarchy streamlines decision-making processes and establishes a clear ladder for escalation and accountability. For example, flat structures may lead to quicker decision times and increased empowerment among staff, while tall structures often feature well-defined, procedural channels for decision-making.

Designing Effective Workflow

Workflow design is instrumental for organizational productivity. Effective workflows incorporate systematic processes where tasks are transitioned smoothly from one stage to the next. This sequence should reflect the organization’s strategy and objectives, ensuring that each department’s activities contribute to the broader goals. Workflow optimization often entails eliminating redundant steps and implementing systems that support efficient resource allocation .

Leveraging Human Resources

An organization’s success is heavily reliant on how well it manages and utilizes its human resources. Talent management involves not only hiring skilled employees but also ensuring they have a conducive environment to thrive in. This requires aligning staff expertise with the company’s strategic needs, fostering professional development, and maintaining morale through recognition and rewards. Effective human resources strategies ensure that the organization’s goals are seamlessly supported by its most valuable assets—its people.

Enhancing Performance and Competitive Advantage

To effectively enhance performance and secure a competitive advantage, organizations must align core values and capabilities with strategic goals. This alignment involves a rigorous analysis of internal and external factors that influence success.

Identifying and Leveraging Capabilities

Organizations must first identify their unique capabilities that drive performance. These include specific skills, staff competencies, and internal processes that provide a distinct advantage in the marketplace. Once identified, leveraging these capabilities means integrating them with the company’s strategy and shared values, ensuring that every aspect of the organization is working towards common objectives.

Benchmarking and Opportunities

Benchmarking is a critical step for organizations to measure performance against the industry best . This provides insights into where a company stands in relation to its competitors and highlights opportunities for improvement. Identifying gaps in the current model can direct focus towards areas with the most potential for growth, allowing organizations to prioritize resources effectively.

Adapting to the External Environment

The external environment is constantly changing, presenting both challenges and opportunities. Adapting to these changes requires a flexible structure and responsive systems. It’s essential for an organization to remain vigilant, monitoring the external environment for shifts in customer preferences, market trends, and regulatory landscapes. Adjusting strategies and operations in response enables an organization to maintain its competitive advantage over time.

Analyzing and Addressing Challenges

When utilizing the McKinsey 7S Framework, businesses must carefully identify and anticipate operational challenges. They should analyze existing weaknesses and inconsistencies to align all elements of the organization effectively, especially during times of restructuring, mergers, or acquisitions.

Conducting Thorough SWOT Analysis

A SWOT analysis serves as a foundation for identifying the strengths, weaknesses, opportunities, and threats within an organization. This analysis should include:

Strengths : Recognizing organizational capabilities and resources that can be leveraged.
Weaknesses : Identifying current gaps or areas of underperformance.
Opportunities : Highlighting potential areas for strategic growth or improvement.
Threats : Acknowledging external factors that may disrupt operations or stability.

Addressing these components allows businesses to construct a comprehensive overview conducive to strategic planning and management decisions.

Addressing Misalignments and Inconsistencies

The McKinsey 7S Framework emphasizes the importance of alignment between seven key internal factors: strategy, structure, systems, shared values, skills, style, and staff. When misalignments occur, they approach resolution by:

Strategy : Ensuring the organization’s strategy is clear and well-communicated.
Structure : Adjusting the organizational structure to remove silos and facilitate communication.
Systems : Overhauling outdated processes or implementing new systems to improve efficiency.
Shared Values : Realigning the core values to reflect and support the strategy.
Skills : Identifying skill gaps and investing in training or hiring.
Style : Modifying the management style to reflect a more suitable approach for the organization’s goals.
Staff : Aligning staff roles and responsibilities with the organization’s strategic objectives.

By addressing these areas, an organization can improve its overall effectiveness and better navigate the complexities of a merger, acquisition, or restructuring.

Measuring and Improving Organizational Effectiveness

The McKinsey 7S Framework provides a comprehensive approach to assess and enhance organizational effectiveness. It ensures that key internal elements are synchronized for optimal performance.

Utilizing Performance Standards and Metrics

The identification and application of performance standards and metrics are integral for evaluating the current state of an organization. These standards should be clearly defined , quantifiable , and aligned with the company’s strategic goals. Important metrics often include indicators related to productivity , efficiency , and quality of standard operations. Organizations may track metrics such as employee turnover rate , customer satisfaction scores , and operational efficiency rates to gain insights into their performance. This allows leaders to identify areas that require attention and improvement.

Communication throughout the workforce about these performance standards ensures that everyone is aware of expectations and can work in unison towards common organizational goals. Metrics should not only be used as a gauge but also as a means to foster a culture of continuous improvement.

Investing in Training and Development

Investing in the training and development of the workforce is crucial for maintaining and enhancing organizational effectiveness. By focusing on building the skills and capabilities of employees, an organization can ensure its operations remain competitive and innovative. The McKinsey 7S Framework emphasizes aligning skills with business needs, which often involves:

Formal Training Programs : To systematically elevate the knowledge base of employees.
On-the-Job Development : Practical experience that complements theoretical knowledge.
Mentoring and Coaching : One-to-one support to advance personal and professional growth.

Additionally, effective communication about training programs and opportunities encourages employee engagement and conveys the value placed on personnel development. A workforce that is well-trained and up-to-date with industry standards is better equipped to adapt to changes and contribute to the organization’s success.

Case Studies and Practical Applications

Through concrete case studies and real-world applications, one can discern the tangible benefits and potential drawbacks of utilizing the McKinsey 7S Framework in various industries. These examples illuminate how consultants have applied the framework to assess and enhance organizational effectiveness, highlighting the strategic value of alignment across the seven internal elements in making substantial organizational changes.

Real-World Examples from Industry

Numerous organizations across different industries have applied the McKinsey 7S Framework to facilitate effective transformations. In one case, a leading manufacturing company used the model to integrate a newly acquired subsidiary. Consultants focused on aligning the Shared Values and Styles of both entities to ensure a smooth transition. This synergy facilitated a unified approach to setting up the Systems and Structures that would govern the new joint operations.

Another example involved a financial services firm that faced operational inefficiencies due to outdated technology. The application of the McKinsey 7S Model helped in identifying inconsistencies between their Strategy , existing Systems , and the Skills necessary to drive innovation. This resulted in a targeted staff training program and upgrading of systems, which restored the firm’s competitive edge.

Lessons Learned from Successful Implementations

The McKinsey 7S Framework has been a preferred approach by consultants aiming to implement holistic changes in an organization. From successful projects, it’s clear that one advantage offered by the framework’s holistic approach is the ability to identify and reinforce strong links between an organization’s structure and strategy, ensuring a thorough and cohesive transformation.

However, case studies also emphasize the framework’s disadvantage, which can be its complexity and the time consumption in addressing all seven elements effectively. For instance, a telecommunications company might still struggle with adapting its Style and Skills post-strategy revamp, which underlines the need for ongoing adjustments and perhaps even a phased approach to implementation.

Implementing changes in an organization can be complex, but through analyzing these case studies, it is evident that the McKinsey 7S Framework can serve as a comprehensive guide for consultants and companies alike to navigate these complexities with confidence and clarity.

The McKinsey 7S Framework remains a valuable tool for organizational analysis and integrated change management. By scrutinizing the seven elements— Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff —organizations can gain a comprehensive view of their current operational state and pinpoint areas for improvement.

One should approach the framework with a view that these elements are interconnected; thus, a change in one will likely impact the others. It is crucial for an organization to maintain a balance between these elements to ensure effective implementation of strategies and operational efficacy.

When utilizing the McKinsey 7S Framework, an organization must:

Conduct an honest assessment of each element
Identify areas where change is needed
Develop a plan for alignment and transformation
Ensure that the changes contribute to a cohesive organizational culture and vision

Regular reevaluation using the framework can help organizations stay aligned with their strategic vision and adapt to internal or external changes. This disciplined approach to analysis and change can position organizations to navigate complex challenges and enhance their long-term success .

In summary, leaders and managers should integrate the McKinsey 7S Framework into their strategic planning and organizational development efforts to build a resilient and adaptive enterprise .

Frequently Asked Questions

The McKinsey 7S Framework is a valuable tool for assessing and aligning organizational elements to optimize performance. These questions commonly arise when leaders and managers look to apply the framework within their strategic management processes.

What is the McKinsey 7S Framework and how is it applied in strategic management?

The McKinsey 7S Framework is a comprehensive model used to analyze and improve a company’s organizational effectiveness. By examining seven internal components—strategy, structure, systems, shared values, skills, style, and staff—leaders can ensure they are harmoniously aligned to the organizational goals, thus facilitating successful strategic management implementation.

Can you provide an example of how a company has successfully applied the McKinsey 7S Framework?

A company, such as Starbucks, has successfully utilized the McKinsey 7S Framework to maintain alignment between their growth strategies and operating procedures, especially when expanding globally. They do this by continuously reassessing and realigning these seven elements to sustain their market position and corporate culture.

What are the hard and soft elements of the McKinsey 7S Framework, and why are they important?

The hard elements include strategy, structure, and systems which are tangible and easier to identify. The soft elements—shared values, skills, style, and staff—are less tangible but crucial because they represent the human factors in the organization. Both sets are critical because they represent all facets necessary for organizational success and must be aligned for effective execution.

What are the advantages and disadvantages of utilizing the McKinsey 7S Model in organizational analysis?

Advantages of the McKinsey 7S Model include its holistic view of the organization and the interconnectedness it promotes between various elements. However, disadvantages may arise from its inherently qualitative approach, making it less prescriptive and potentially subject to bias in interpretation and analysis.

How is the McKinsey 7S Framework beneficial for implementing effective change within an organization?

The McKinsey 7S Framework assists in highlighting areas of misalignment and provides a guideline for enacting changes across the organization’s core aspects. Effective change often requires considering all seven elements to ensure that they support and reinforce each other, leading to successful implementation and adoption.

What steps should be taken to effectively apply the McKinsey 7S Framework when formulating a new strategy?

When formulating a new strategy using the McKinsey 7S Framework , it is recommended to start by identifying current alignments and inconsistencies across the seven elements. This is followed by iterative adjustments to each component, ensuring they are in sync with the new strategy, culminating in a comprehensive approach to strategy execution.

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Enhancing Organizational Success: A Deep Dive into the McKinsey 7S Model with Real-Life Case Studies

On : December 10, 2023

As organizations face constant challenges to adapt to an economy that is sinking, a consumer buying behavior that only data can understand, and cultural shifts, looking at what models empower organizations to greater success is a worthy use of time. Successful companies understand that the key to sustainable growth lies in aligning their internal elements effectively. One powerful tool that has proven its value in achieving organizational success is the McKinsey 7S Model. Developed by McKinsey & Company, this strategic management framework examines seven critical interdependent factors within an organization to create a cohesive and high-performing unit. The McKinsey 7S Model, has many elements with practical applications.

McKinsey 7s Strategy:

The first S in the McKinsey 7S Model represents the organization’s overarching plan and direction. A clear and well-defined marketing strategy is essential to guide decision-making, resource allocation, and market positioning. A prime example is Apple Inc., which revolutionized the technology industry by focusing on innovation, creating premium products, and building a strong brand identity. Their strategic approach has enabled them to consistently outperform competitors and dominate the market.

The second S denotes the organization’s design, including its hierarchy and reporting lines. A cohesive marketing team structure facilitates efficient communication, collaboration, and decision-making. Procter & Gamble (P&G) serves as a prime example. P&G’s matrix organizational structure enables seamless coordination between various brands and functions, fostering innovation and global expansion.

The third S in the model refers to the processes and procedures that support the execution of the marketing strategy. Amazon, renowned for its customer-centric approach, leverages robust systems to streamline operations, ensuring fast and reliable product delivery and an outstanding customer experience. Their efficient system integration has driven unparalleled growth and customer loyalty.

The fourth S encompasses the competencies and expertise of the marketing team. Adobe, a leading software company, continuously invests in its employees’ development, ensuring they possess the skills required to innovate and deliver exceptional customer experiences. This focus on upskilling has contributed to their industry-leading solutions and sustained growth.

The fifth S highlights the importance of having the right people in the right roles. Google is renowned for its rigorous talent acquisition process, seeking individuals who align with their culture of innovation and passion for solving complex challenges. This meticulous approach to hiring has fostered a dynamic and diverse workforce that drives Google’s continuous success.

The sixth S relates to the leadership and management style that influences an organization’s culture and decision-making. Microsoft’s transformation under Satya Nadella exemplifies effective leadership. His inclusive and empowering style enabled Microsoft to shift its focus from products to solutions, leading to unprecedented growth and market relevance.

Shared Values:

The final S represents the core values and beliefs that underpin the organization’s identity. Starbucks, known for its commitment to social responsibility and ethical sourcing, has successfully cultivated a brand that resonates with its customers’ values. This shared value system has resulted in a loyal customer base and global brand advocacy.

Case Studies:

General electric (ge):.

GE implemented the McKinsey 7S Model during its organizational transformation. By aligning strategy, structure, systems, skills, staff, style, and shared values, GE refocused on core competencies and divested non-core businesses. This strategic shift resulted in increased operational efficiency, improved financial performance, and enhanced shareholder value.

Coca-Cola utilized the McKinsey 7S Model to streamline its marketing function. By reevaluating its marketing strategy, restructuring marketing teams, and investing in employee development, Coca-Cola achieved greater agility in responding to market trends and enhancing customer engagement.

The McKinsey 7S Model provides a comprehensive framework for organizations to evaluate and align their internal elements effectively. By harmonizing strategy, structure, systems, skills, staff, style, and shared values, companies can create a unified and high-performing entity. Real-life case studies, like General Electric and Coca-Cola, demonstrate the model’s practical application in driving transformation and achieving long-term success. Embracing the McKinsey 7S Model empowers marketing teams to adapt, innovate, and thrive in today’s dynamic business landscape, ensuring a competitive advantage and sustainable growth.

That we know about business and organisational modelling is that it takes time, structure, practice and persistence. When companies undertake this type of transformation, it can be the difference of scale or subtract.

While McKinsey has many positive points, there is always a sense that perhaps McKinsey has not adapted fast enough to the changing consumer behaviors and still has an old-school approach. They were not the first to adopt AI and are late-comers. This is concerning for large corporations that have relied on McKinsey to take them into the future. If they themselves are not in the future, predicting what is to come, how can they truly be relevant in today’s AI world?

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Enhancing Organizational Success: A Deep Dive into the McKinsey 7S Model with Real-Life Case Studies

Written by Marketing Eye Atlanta
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Currently, organizations face constant challenges in learning new marketing approaches, consistently devising impactful campaigns that make a mark and grow. Successful companies understand that the key to sustainable growth lies in aligning their internal elements effectively. One powerful tool that has proven its value in achieving organizational success is the McKinsey 7S Model. Developed by McKinsey & Company, this strategic management framework examines seven critical interdependent factors within an organization to create a cohesive and high-performing unit.

So let’s delve into the McKinsey 7S Model, explore each element in detail, and illustrate its practical application through real-life case studies.

The first S in the McKinsey 7S Model represents the organization's overarching plan and direction. A clear and well-defined marketing strategy is essential to guide decision-making, resource allocation, and market positioning. A prime example is Apple Inc., which revolutionized the technology industry by focusing on innovation, creating premium products, and building a strong brand identity. Their strategic approach has enabled them to consistently outperform competitors and dominate the market.

The second S denotes the organization's design, including its hierarchy and reporting lines. A cohesive marketing team structure facilitates efficient communication, collaboration, and decision-making. Procter & Gamble (P&G) serves as a prime example. P&G's matrix organizational structure enables seamless coordination between various brands and functions, fostering innovation and global expansion.

The fourth S encompasses the competencies and expertise of the marketing team. Adobe, a leading software company, continuously invests in its employees' development, ensuring they possess the skills required to innovate and deliver exceptional customer experiences. This focus on upskilling has contributed to their industry-leading solutions and sustained growth.

The sixth S relates to the leadership and management style that influences an organization's culture and decision-making. Microsoft's transformation under Satya Nadella exemplifies effective leadership. His inclusive and empowering style enabled Microsoft to shift its focus from products to solutions, leading to unprecedented growth and market relevance.

Shared Values:

The final S represents the core values and beliefs that underpin the organization's identity. Starbucks, known for its commitment to social responsibility and ethical sourcing, has successfully cultivated a brand that resonates with its customers' values. This shared value system has resulted in a loyal customer base and global brand advocacy.

Case Studies:

General electric (ge):.

Real-life case studies, like General Electric and Coca-Cola, demonstrate the McKinsey 7S Model’s practical application in driving transformation and achieving long-term success. The model has surely provided organizations with a comprehensive framework to evaluate and align their internal elements in a super effective way. By harmonizing strategy, structure, systems, skills, staff, style, and shared values, companies are now creating a unified and high-performing entity. If you are striving to make your mark with data-driven marketing strategies that are on-point, engaging and relatable, consider outsourcing your marketing needs to a reliable partner like Marketing Eye Atlanta.

At Marketing Eye Atlanta , we pride ourselves on being truly disruptive in every way. We're not your typical marketing agency – we're a force of change, committed to helping businesses thrive. Our outsourced marketing model is tailor-made for companies that recognize the power of having a 'Marketing Eye' on their side. Through collaboration and partnership, we believe there are no limits to what we can achieve together – and our track record proves it! Check out our services to know how we are constantly evolving and developing custom technology to work harder, faster, and smarter for our clients, ensuring remarkable results.

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How McKinsey's 7S Model Can Enable Successful Digital Transformations

Table of Contents

What is the McKinsey 7S Model?

The McKinsey 7S Model is an academic framework widely taught in business and MBA programs worldwide. However, its significance extends beyond the academic realm, playing a vital role in facilitating successful digital transformations. This discussion aims to explore the application of the McKinsey 7S Model in the context of digital transformation.

One of the principal tenets of an effective digital transformation is developing a robust strategy. This process starts with the overarching corporate strategy, which should then inform the formulation of a specific digital strategy to support and enhance the broader corporate goals. The McKinsey 7S Model, a tool often used in this context, emphasizes that strategy is the foremost among the seven S's.

It highlights the necessity for this strategy to be in harmony with the other six areas, which will be discussed. Essentially, the initiation and the culmination of an effective digital transformation hinge on a well-crafted strategy, underscoring its position as the first 'S' in the 7S Model.

The second 'S' in the McKinsey 7S Model refers to 'Style,' which encompasses the overall management approach and the organizational ethos . This model element addresses questions such as whether an organization adopts a command-and-control or a top-down management style. Alternatively, it may operate as a bottom-up, decentralized entity, or perhaps it embraces a laissez-faire approach, allowing different business segments to function independently with a high degree of trust in their effectiveness.

The key objective is to ensure that this chosen style is congruent with the overarching strategy the organization aims to pursue. Additionally, it is crucial for this management style to be in alignment with the other elements represented in the 7S Model, ensuring a cohesive and effective operational framework .

The next critical component of the McKinsey 7S Model, particularly relevant to digital transformation, is 'Staff.' This aspect concerns having the right personne l in place to support and enact the desired strategy and organizational style , along with the other elements of the model.

In the context of a digital transformation project , it is imperative to ensure that the team comprises individuals best suited to facilitate the intended strategy. The concept of having the 'best people' on a project refers to selecting those who are most capable and appropriately equipped to realize the strategic goals.

Aligning the right staff is not just vital for the success of the digital transformation initiative but is also crucial for the organization as a whole. During a digital transformation , assessing and aligning the staff with the strategy, style, and other elements of the 7S Model is essential. Failure to do so can lead to misalignment , where the capabilities and focus of the staff do not match the strategic objectives and the preferred management style, as well as potentially affecting other areas that will be discussed subsequently.

Once the right staff is in place, ensuring the organization has the correct personnel, attention must turn to assessing their skills. Although it might seem similar to considering the staff, focusing on skills represents a distinct and crucial aspect. It involves aligning the workforce's skills with the broader objectives of the digital transformation, the organizational style, the strategy, and other elements previously discussed.

The process entails identifying the specific skill sets required to facilitate the transformation. This may include technical skills related to the deployment and utilization of new technologies, as well as competencies in organizational change management , ensuring that the organization can adapt to the transformation and other changes effectively.

These skills are vital not only within the digital transformation team but across the entire organization. As one of the most crucial components of the McKinsey 7S Model, skills alignment plays a key role in the success of a digital transformation .

Shared Values

The next component of the McKinsey 7S Model is 'Shared Values,' which can also be considered the organization's culture . This encompasses the philosophical aims of the organization, the type of work environment it strives to create, and the overall cultural ethos it seeks to foster.

In the context of digital transformations, shared values and culture assume a significant role. While all other elements of the model are crucial to digital transformation, shared values often necessitate change. Organizations typically aim to build upon the existing culture and values that have contributed to their success but must also consider how to adapt without undermining their core ethos. This involves careful calibration of the organizational culture . To gain deeper insights into company culture, you can explore more by visiting this link to our enlightening podcast titled - Company Culture and its Role in Organizational Change Management .

For instance, companies that have expanded through acquisitions often retain a strong entrepreneurial spirit , which is a key factor in their success and growth. However, as such companies mature and scale, there is a need to shift towards more standardized operating models and consistent business processes , potentially becoming less entrepreneurial and more structured or corporate.

The objective is not to completely discard the existing culture but to find a balance akin to adjusting a dial on a stereo. Incremental adjustments to the cultural aspects might be necessary. During a digital transformation, one of the most commonly overlooked aspects is this very concept of shared values and culture. Ensuring that these are in alignment with the other components of the 7S Model is critical for a successful transformation .

'Structure' is another vital component of the McKinsey 7S Model, synonymous with organizational design . This aspect focuses on envisioning the ideal form of the organization, determining roles and responsibilities , and defining how different departments will interact and operate. It also encompasses considerations about business processes and the overall vision of the organization's future structure.

In the realm of digital transformations, the structure or organizational design is often an overlooked element. However, it is essential not only to address organizational design but to do so in the context of the rest of the 7S Model. This ensures that the developed organizational structure aligns with the strategy, shared values, and other aspects discussed earlier.

When embarking on a digital transformation, it is crucial to integrate this aspect of structure or organizational design into the transformation plan. It should be a deliberate component carefully considered to ensure it complements and supports all other areas of the 7S Model.

The seventh and final component of the McKinsey 7S Model is 'Systems,' specifically focusing on technology. Notably, systems have been intentionally discussed last in this context. While systems and technology often appear as the primary focus of digital transformation on the surface, it is the other six elements of the model that are more critical.

Before considering how systems can integrate and align with the organization , it is imperative to ensure alignment and clear direction in the other six areas: strategy, structure, skills, style, staff, and shared values. A common pitfall in digital transformation efforts is the premature or exclusive focus on systems, neglecting the other essential elements of the model.

Systems should be viewed as a capstone, serving as an enabler for the six other aspects. Only after defining and aligning these six elements should the organization implement technology. This approach ensures that the chosen systems and technologies effectively support and enhance the other key areas of the organization, aligning with the overall strategy and goals of the digital transformation.

In "The Final Countdown," Eric Kimberling emphasizes the importance of prioritizing People and Processes in organizational change, advocating for a transformative strategy where Technology is skillfully incorporated as the last, strategically essential element. You can purchase his book by clicking the link here - The Final Countdown .

Key Takeaways

The key takeaways for successfully managing digital transformation involve the utilization of the McKinsey 7S Model as a comprehensive framework. This model is instrumental in assessing alignment and ensuring that all critical components necessary for an effective transformation are addressed.

As previously mentioned, organizations often disproportionately focus on the 'Systems' aspect of the model, sometimes considering one or two other elements. However, to achieve a successful transformation, it is crucial that all seven components of the model — Strategy, Structure, Systems, Skills, Style, Staff, and Shared Values — are well-aligned and integrated.

These components should collectively form a part of the organization's overall digital strategy and roadmap . Such an inclusive approach guarantees a more holistic and effective digital transformation, taking into account not just the technological aspects but also the organizational, cultural, and human factors that are essential for sustainable success.

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I would enjoy brainstorming ideas with you if you are looking to strategize an upcoming transformation or are looking at selecting an ERP system, so please feel free to contact me at [email protected] . I am happy to be a sounding board as you continue your digital transformation journey .

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IKEA McKinsey 7S Model

IKEA McKinsey 7S model explains how individual elements of businesses can be aligned to increase the overall effectiveness. McKinsey 7S framework considers strategy, structure and systems as hard elements, whereas shared values, skills, style and staff are accepted as soft elements. The framework stresses the presence of strong links between elements in a way that a change in one element causes changes in others.

As it is illustrated in figure below, shared values represent the core of IKEA McKinsey 7S framework. This is because shared values guide employee behaviour with effects on their performance and ultimately on the bottom line for the business.

McKinsey 7S model

Hard Elements in IKEA 7S Model

IKEA business strategy is based on the IKEA Concept, which is built upon the combination of function, quality, design and value – always with sustainability in mind. Moreover, the Swedish furniture chain offers cost advantage value for customers. Accordingly, IKEA business strategy involves offering increasing variety of products for the lowest prices. Regular engagement in new market development and benefiting from strategic alliances constitute additional pillars of IKEA business strategy.

IKEA organizational structure is unique and highly complex. The home improvement and furnishing chain maintains uniqueness and complexity its corporate structure in order to pay less taxes. The company can be divided into three large groups: franchise, range and supply and industry. Large scale of the business that integrates 11 franchisees operating in more than 500 locations in 63 countries [1] necessitates hierarchical organizational structure. Nevertheless, the Swedish furniture chain has proved to be successful in overcoming common weaknesses of hierarchical organizational structure such as high level of bureaucracy and lack of flexibility of the business.

IKEA business relies on a set of systems. These include employee recruitment and selection system, team development and orientation system, transaction processing systems, customer relationship management system, business intelligence system, knowledge management system and others.

The global furniture retailer subjects each of its systems to critical analysis periodically to identify and utilise potentials for further improvements. Furthermore, the furniture retailer generates the biggest value from manufacturing and product delivery systems in a way that flat-pack furniture delivery system pioneered by IKEA is one of the main factors that enable low costs of the products.

IKEA Group Report contains a full analysis of IKEA McKinsey 7S Model. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Ansoff Matrix and Value Chain analysis on IKEA . Moreover, the report contains analyses of IKEA leadership, business strategy organizational structure and organizational culture. The report also comprises discussions of IKEA marketing strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Inter IKEA Holding B.V. Annual report FY21

Theory applied to informatics: The McKinsey 7-S Framework

by June Kaminski, RN MSN PhD(c) Editor in Chief

CJNI was initiated by June Kaminski in 2006 when she was President-Elect of CNIA. She is currently Faculty and Curriculum Coordinator of a BSN Advanced Entry nursing program at Kwantlen Polytechnic University; Communications Officer, Webmaster, and former President of the Canadian Association of Nurses for the Environment and Editor in Chief of the Online Journal of Nursing Informatics. In 2012, June was honoured to receive the CASN and Canada Health Infoway’s inaugural Nursing Faculty E-Health Award 2012 in Ottawa Canada. She also won the Distinguished Teaching Award from Kwantlen Polytechnic University in 2016. She offers the Nursing Informatics Learning Centre with accredited CEU informatics courses.

Kaminski, J. (2022). Theory applied to informatics – The McKinsey 7-S Framework. Canadian Journal of Nursing Informatics, 17 (1). https://cjni.net/journal/?p=9751

The McKinsey 7-S Framework was developed by Robert Waterman, Tom Peters, and Julien Phillips who were consultants working for McKinsey and Co. in the late 1970s with the help of Tony Athos and Richard Pascale. Since then it has been applied as a change management and holistic organizational quality model in many avenues of business and is “a framework introduced to address the critical role of coordination, rather than structure, in organizational effectiveness” (Bryan, 2008, p.1).

The framework or model emerged to go beyond the common focus on structure and strategy, to find the essence of organizational effectiveness. “The goal of the model is to depict how effectiveness can be achieved in an organization through the interactions of seven key elements – Structure, Strategy, Skill, System, Shared Values, Style, and Staff” (Corporate Finance Institute., n.d. p. 1). The seven elements were deliberatively chosen to create a unique model composed of all “S” words. “Tony was insistent that, corny as it appeared to be, we develop an alliterative model—find stuff that began with “Ss” in this case. In retrospect, it was a move of near genius” (Peters, 2011b, p. 2).

The model was visually presented using a circular configuration with Shared values in the centre, surrounded by the six elements of Structure, Strategy, Skill, System, Style, and Staff (Figure 1). The seven elements are also linked with interconnecting lines that show that each is equally valuable and that they all work together. As Tom Peters, one of the authors explained: “The shape of the “model” was also of monumental importance. It suggested that all seven forces needed to somehow be aligned if the organization was going to move forward vigorously—this was the “breakthrough” (a word I normally despise) that directly addressed Ron Daniel’s initial concerns that had motivated the project. As we put it in the 1980 Business Horizons article, “At its most powerful and complex, the framework forces us to concentrate on interactions and fit. The real energy required to re-direct an institution comes when all the variables in the model are aligned”” (Peters, 2011b, p. 2; Waterman et al., 1980, p. 26). The first public introduction to the model was through the Waterman et al. (1980) article in “Business Horizons, in its June 1980 issue, formally birthed the 7-Ss in an article by Bob Waterman, myself, and Julien Phillips titled: “Structure Is Not Organization.”” (Peters, 2011b, p. 1).

Figure 1: The McKinsey 7S Framework

Although the authors did not set out to create a change management model, the 7S Framework has been used to guide change in a variety of organizational contexts, including healthcare organizations since “the framework maps a constellation of interrelated factors that influence an organization’s ability to change. The lack of hierarchy among these factors suggests that significant progress in one part of the organization will be difficult without working on the others” (Bryan, 2008, p.1).

It is a model that is well suited to healthcare change, including information technology integration planning, since it guides users to apply a holistic approach to planning that considers all aspects of an organization from strategies to staff and their needs, to the shared values of all concerned. “This model is also a great reminder that change does not happen in a vacuum or in isolation; it can only happen within the wider context, and at the heart of it all is ‘Shared Values’ – the organisational culture, which can either hinder or enable change” (Change Quest, n.d., p. 3). “The model highlights that there exists a domino effect when any one element is transformed to restore effective balance. The central placement of shared values emphasizes that a strong change culture impacts all the other elements to drive change” (Malik, 2022, p. 1).

Wieberneit (2019) described how the 7S Framework could be applied to AI adoption. “What the model says, is that these seven factors need to be in alignment and even mutually reinforce each other in order for an organization to sustainably succeed when implementing a transformational change. Applying it to embedding AI in a business it immediately shows that purely looking at systems and skills is not enough. The paradigm shift, that the implementation of AI in a company is, needs to address the other five factors, too” (p. 1).

This holistic approach helps organizational teams to see the big picture, the gaps, the training and professional development needs, and the style that best suits them as they forge ahead. “The 7S model helps to analyse the current situation (point A) and the desired future situation (point B), and to identify gaps and inconsistencies between them. It is then a matter of adjusting and tuning the elements of the 7S model to ensure that the organisation works effectively and well once the desired endpoint has been reached” (Grant, 2008, p. 195; Think Insights, 2022; Jurevicius, 2021). To understand the 7S Model, one needs to explore the seven essential elements: Shared Values, Strategy, Structure, Style, Systems, Staff and Skills and how they interconnect.

Shared Values

Initially, the authors of this model called the inner element “Superordinate Goals” (Waterman et al., 1980) but in their 1982 book, In Search of Excellence they changed this element to “Shared Values” after much discussion and deliberation (Peters & Waterman, 1982). Shared Values was intentionally placed in the middle of the model configuration by the authors. “ They are placed in the center of the model and interrelated with all the factors. Therefore, they depict the culture of the organization. They support long-term achievements and motivate employees to explore new, competitive arenas. Likewise, shared values provide employee engagement with the organization” (Alloc, 2018, p. 1).

This central position emphasizes that Shared Values are “the collective value system that is central to the organizational culture and represents the company’s standards and norms, attitudes, and beliefs. It’s regarded as the organization’s most fundamental building block that provides a foundation for the other six elements” (Creately Blog, 2021, p. 3) “that define an overall goal for all employees” (Chmielewska et al., 2022, p. 5). “While implementing a change, organizations expect a behavioral modification from their employees, which is only possible in a strong change culture and organizational values” (Malik, 2022, p. 3).

The authors discussed these points at length and described more indepth impacts of these shared values. “They are its main values. But they are more as well. They are the broad notions of future direction that the top management team wants to infuse throughout the organization. They are the way in which the team wants to express itself, to leave its own mark” (Waterman et al., 1980, p. 25).

Strategy has long been a focus of virtually every organization’s development and/or change initiative: one that has served as the backbone and key tool for guiding efforts and goal attainment. Strategy is essentially, the map to achieve an organisation’s overarching aim to be successful and thrive. “What does a well-aligned strategy mean in the 7s McKinsey model? In general, a sound strategy is the one that’s clearly articulated, is long-term, helps to achieve competitive advantage and is reinforced by strong vision, mission and values. But it’s hard to tell if such strategy is well-aligned with other elements when analyzed alone. So, the key in the 7s model is not to look at your company to find the great strategy, structure, systems etc., but to look if it is aligned with other elements” (Jurevicius, 2021, p. 2).

This last point cannot be emphasized enough. When using the 7S model, all seven elements must be focused on as a cohesive unit. “The strategy element is a detailed plan that organizations create for successful change implementation and to gain a competitive edge. A well-crafted strategy is aligned with the other six elements of the 7-S model and is reinforced by a strong vision, mission, and values” (Malik, 2022, p. 3).

Strategy also colours and energizes the uniqueness of individual organizations or as its authors pointed out: “It is, or ought to be, an organization’s way of saying: “Here is how we will create unique value.”” (Waterman et al., 1980, p. 20).

When applying the 7S model to digital innovations, strategy guides several important questions that team leaders must ask. “In the fast paced world of digital healthcare, you’ve got to realize that you’re creating value beyond just having an app or big data platform. It’s how you reach and talk to your customers whether they’re doctors or patients or otherwise that gives you your competitive advantage. How are you reaching out to the innovators and early adopters who are going to be your startup’s champions?” (Abed, 2013, p. 1).

Structure is another fundamental element of organizational development and operations and is basically the outline of who reports to whom and is often visually represented in an organizational hierarchy chart.

“The structure is the organizational chart of the company. It represents how the different units and divisions of the company are organized, who reports to whom and the division and integration of tasks. The structure of a company could be hierarchical or flat, centralized or decentralized, autonomous or outsourced, or specialized or integrated. Compared to most other elements, this one is more visible and easier to change” (Creately Blog, 2021, p. 1).

Structure is a common element targeted during routine change initiatives. However, changing structure is often not successful in changing culture, values, or ways of interacting across an organization. In the context of informatics and technology adoption, structure is critical for providing accountability, responsibilities, and lines of communication across roles and departments. As Singh pointed out, “Most organizations use formal channels of communication. This results in choking of essential information giving rise to grapevines. The organizational structure has to be designed in a way that information is not choked” (2013, p. 43).

In the 7S model, the style of leadership and how it influences the organizational culture is another important element of organizational effectiveness and change. “Style speaks to the example and approach that management takes in leading the company, as well as how this influences performance, productivity, and corporate culture” (Kenton, 2021, p.1). The way management makes decisions, interacts with personnel, initiates changes, establishes policies, guidelines, and rules all determine the inherent style element.

For instance, in an organization that values input and interaction with all employees, a culture of openness and collaboration will likely emerge. When proposing changes such as a new EHR integration, the organizational culture will become more receptive and supportive of the change if the management style invites inclusive communication and decision-making (Singh, 2013; Waterman et al., 1980). “Our proposition is that a corporation’s style, as a reflection of its culture, has more to do with its ability to change organization or performance than is generally recognized” (Waterman et al., 1980, p. 22).

Waterman, Peters and Phillips (1980) described the 7S systems element as the fundamental day by day functioning of an organization. “By systems we mean all the procedures, formal and informal, that make the organization go, day by day and year by year: capital budgeting systems, training systems, cost accounting procedures, budgeting systems. If there is a variable in our model that threatens to dominate the others, it could well be systems. Do you want to understand how an organization really does (or doesn’t) get things done? Look at the systems. Do you want to change an organization without disruptive restructuring? Try changing the systems” (Waterman et al., 1980, p. 21). “Managers should primarily focus on systems during organizational change” (Think Insights, 2022, p. 2).

Systems affect all people in an organization no matter what level of responsibility or role they function at. It is important that the interlaced systems in an organization are well planned and managed, since they influence “…daily procedures, workflow, and decisions that make up the standard operations within the organization” (Kenton, 2021, p.1). The 7S authors put particular emphasis on the critical role systems play in promoting effectiveness and advised leaders to pay close attention to how they shaped an organization’s systems. “To many business managers the word ” systems” has a dull, plodding, middle-management sound. Yet it is astonishing how powerfully system changes can enhance organizational effectiveness – without the disruptive side effects that so often ensue from tinkering with structure” (Waterman et al., 1980, p. 21).

The staff element in the 7S model focuses on an organization’s personnel, how many there are and what their roles are, how they are recruited and supported, what opportunities for training and development exist, how much they are paid, and what motivates them to do their best while at work (Creately Blog, 2021; Kenton, 2021; Singh, 2013). This element is fundamental to the smooth operation of any organization and often sets the tone for how workplace culture will evolve. It also introduces a complex element that takes insight and know-how to properly tap and bring out potential. “Staff (in the sense of people, not line/staff) is often treated in one of two ways. At the hard end of the spectrum, we talk of appraisal systems, pay scales, formal training programs, and the like. At the soft end, we talk about morale, attitude, motivation, and behavior” (Waterman et al., 1980, p. 23).

The important point of this element is to go beyond the notion of staff as hired help or cogs in the system and to value the uniqueness of each individual within the organization. “Considering people as a pool of resources to be nurtured, developed, guarded, and allocated is one of the many ways to turn the “staff” dimension of our 7-S framework into something not only amenable to, but worthy of practical control by senior management” (Waterman et al., 1980, p. 24).

The seventh and final element of the 7S framework is skills – meaning the actual current skills and competencies of staff/employees, as well as a look at the skills that need to be developed to allow an organization to grown or change. Like the other six elements, the skills element is an important and interdependent part of the model. As the model authors summarized, “We added the notion of skills for a highly practical reason: It enables us to capture a company’s crucial attributes as no other concept can do” (Waterman et al., 1980, p. 24).

The introduction or refinement of technology within an organization provides a classic example of how skills must be assessed, improved and/or replaced as new ways of doing things evolve. For instance, when healthcare organizations move from paper based documentation to electronic, all staff must develop new skills in order to use the system. An important part of this type of change is looking at what new skills must be cultivated and a means to support this skill development must be put into place (often by inhouse training) (Think Insights, 2022; Alloc, 2018). “Possibly the most difficult problem in trying to organize effectively is that of weeding out old skills-and their supporting systems, structures, etc. – to ensure that important new skills can take root and grow” (Waterman et al., 1980, p. 24). In order to transform organizations, communication must be motivating, supportive and compassionate to inspire staff to be open to the development of new skills with ample time and opportunity to do so in unhurried, and user-centric ways (Singh, 2013).

Hard and Soft Elements

An important deeper layer of the 7S Framework is the classification of the seven elements as either hard or soft. The three hard elements are the tangible, concrete, technical elements: Systems, Strategy and Structure (Figure 2). The four soft elements are viewed as social, intangible, abstract, fuzzy, and culture driven: Skills, Staff, Style and Shared values (Chmielewska et al., 2022; Kenton, 2021; Malik, 2022). “Change initiatives very often have more focus and effort put on the ‘hard’ more tangible elements, but the interconnectedness of this model shows that the ‘hard’ elements will not work unless the ‘soft’ elements are also addressed and aligned” (Change Quest, n.d., p. 3).

Figure 2: Hard and Soft Elements of the 7S Framework

Ironically, the 7S authors viewed these so-called soft elements as the most difficult to change or motivate. “I continue to say, over 30 years later, that the power of the 7-Ss and In Search of Excellence (Peters & Waterman, 1982) and my subsequent work can best be captured in six words: Hard is soft. Soft is hard . That is, it’s the plans and the numbers that are often soft (the sky-high soundness scores that the ratings agencies gave packages of dubious mortgages). And the people (staff) and shared values (culture) and skills (core competencies) that are truly hard—that is, the bedrock upon which the adaptive and enduring enterprise is built” (Peters, 2011a, p. 7). This observation provides sage direction when planning informatics related changes: work with the soft elements first, then plan the systems, strategy and structure for lasting and successful adoption and implementation.

“More importantly, it suggests the wisdom of taking seriously the variables in organizing that have been considered soft, informal, or beneath the purview of top management interest. We believe that style, systems, skills, superordinate goals can be observed directly, even measured – if only they are taken seriously. We think that these variables can be at least as important as strategy and structure in orchestrating major change; indeed, that they are almost critical for achieving necessary, or desirable, change. A shift in systems, a major retraining program for staff, or the generation of top – to – bottom enthusiasm around a new superordinate goal could take years. Changes in strategy and structure, on the surface, may happen more quickly. But the pace of real change is geared to all seven S’s” (Waterman et al., 1980, p. 26).

Application of the McKinsey 7S Model

It is quite plausible to follow the 7S model when planning any organizational change, including technology implementation. The first step is to identify which elements are well aligned and which are not. (Corporate Finance Institute., n.d.; Jurevicius, 2021). “You must identify which elements of the 7-S framework you need to realign to improve organizational performance or to maintain alignment and performance during other changes such as restructuring, process improvement, a corporate merger, new software implementation, or a leadership change” ” (Malik, 2022, p. 3).

Questions to Ask

“When embarking on any change initiative, you can use this model as a simple checklist.

Here are some useful questions to ask for each area:

Strategy: How does this change link up to the strategy, and how will it impact the strategy?

Structure : Will the organizational structure need to be changed?

Systems: Which systems across the organization will be impacted e.g. IT, HR?

Style: What style of leadership will be adopted to manage this change?

Staff: What general capabilities will people need after change is introduced?

Skills: What specific skills will people require to operate when change introduced?

Shared Values: What values / culture is necessary to make the change work?” (Change Quest, n.d., p. 3).

To summarize, the McKinsey 7S Framework provides a robust, holistic model that can be applied to comprehensively plan change and gauge organizational effectiveness. “At its most powerful and complex, the framework forces us to concentrate on interactions and fit. The real energy required to redirect an institution comes when all the variables in the model are aligned. One of our associates looks at our diagram as a set of compasses. “When all seven needles are all pointed the same way, ” he comments, ” you’re looking at an organized company ” (Waterman et al., 1980, p. 26).

Abed, S. (2013). The 7Ss of Digital Health Startup Success . HIT Consultant. https://hitconsultant.net/2013/03/06/the-7ss-of-digital-health-startup-success/

Alloc, I. (2018). Change Management Models -The McKinsey’s 7S Framework . LinkedIn. https://www.linkedin.com/pulse/change-management-models-mckinseys-7s-framework-isam-abbas-hr-manager/

Bryan, L. (2008). Enduring Ideas: The 7-S Framework. McKinsey Quarterly. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/enduring-ideas-the-7-s-framework

Change Quest. McKinsey 7S change model. https://www.changequest.co.uk/wp-content/uploads/mckinsey_7s_model_v1.0.pdf

Chmielewska, M., Stokwiszewski, J., Markowska, J., & Hermanowski, T. (2022). Evaluating Organizational Performance of Public Hospitals using the McKinsey 7-S Framework. BMC Health Services Research, 22 (1), 1–12. https://doi-org.ezproxy.kpu.ca:2443/10.1186/s12913-021-07402-3

Corporate Finance Institute. (n.d.) What is the McKinsey 7S Model? https://corporatefinanceinstitute.com/resources/knowledge/strategy/mckinsey-7s-model/

Creately Blog. (2021). The Easy Guide to the McKinsey 7S Model. https://creately.com/blog/diagrams/mckinsey-7s-model-guide/

Grant, P. (2008). “The productive ward round”: a critical analysis of organisational change. International Journal of Clinical Leadership, 16 (4), 193–201.

Jurevicius, O. (2021). McKinsey 7S Model. Strategic Management Insights. https://strategicmanagementinsight.com/tools/mckinsey-7s-model-framework/

Kenton, W. (2021). McKinsey 7S Model. Investopedia. https://www.investopedia.com/terms/m/mckinsey-7s-model.asp

Malik, P. (2022). The McKinsey 7-S Model Framework, Explained . Whatfix. https://whatfix.com/blog/mckinsey-7s-model/

Peters, T. & Waterman, R. (1982). In Search of Excellence . HarperCollins.

Peters, T. (2011a). McKinsey 7-S Model: It continues to benefit leaders. Leadership Excellence, 28 (10), 7.

Peters, T. (2011b). A Brief History of the 7-S (“McKinsey 7-S”) Model. Personal Blog. https://tompeters.com/2011/03/a-brief-history-of-the-7-s-mckinsey-7-s-model/

Singh, A. (2013). A Study of Role of McKinsey’s 7S Framework in Achieving Organizational Excellence. Organization Development Journal, 31 (3), 39–50.

Sokol, R., Schuman-Olivier, Z., Batalden, M., Sullivan, L., & Shaughnessy, A. F. (2020). A Change Management Case Study for Safe Opioid Prescribing and Opioid Use Disorder Treatment. Journal of the American Board of Family Medicine: JABFM, 33( 1), 129–137. https://doi-org.ezproxy.kpu.ca:2443/10.3122/jabfm.2020.01.190223

Think Insights (May 29, 2022) 7S: An organizational design framework from McKinsey. https://thinkinsights.net/strategy/7s-framework/

Waterman, R., Peters, T. & Phillips, J. (1980, June). Structure is not organization . Business Horizons. https://tompeters.com/docs/Structure_Is_Not_Organization.pdf

Wieberneit, T. (2019). Use the 7S Model for a Successful AI Transformation . CustomerThink. https://customerthink.com/use-the-7s-model-for-a-successful-ai-transformation/

Hacking the Case Interview

Case interview frameworks or consulting frameworks are arguably the most critical component of a case interview. Outstanding case frameworks set you up for success for the case while poor frameworks make the case difficult to solve.

Struggling on how to use frameworks in your case interviews? Unsure of which frameworks to use?

Don't worry because we have you covered! We'll teach you step-by-step, how to craft tailored and unique frameworks for any case interview situation.

By the end of this article, you will learn four different strategies on how to create unique and tailored frameworks for any case interview.

Strategy #1: Creating Frameworks from Scratch

Strategy #2: Memorizing 8 – 10 Broad Business Areas
Strategy #3: Breaking Down Stakeholders
Strategy #4: Breaking Down Processes
Strategy #5: Two-Part MECE Frameworks

You will apply these strategies to learn how to create case frameworks for the six most common types of case interviews.

Profitability Framework

Market entry framework, merger and acquisition framework, pricing framework, new product framework, market sizing framework.

You will also learn six consulting frameworks that nearly every consultant knows.

Porter’s Five Forces Framework

Swot framework, 4 p’s framework, 3 c’s / business situation framework, bcg 2x2 matrix framework, mckinsey 7s framework.

If you’re looking for a step-by-step shortcut to learn case interviews quickly, enroll in our case interview course . These insider strategies from a former Bain interviewer helped 30,000+ land consulting offers while saving hundreds of hours of prep time.

What is a Case Interview Framework?

A case interview framework is simply a tool that helps you structure and break down complex problems into simpler, smaller components. Think of a framework as brainstorming different ideas and organizing them into different categories.

Let’s look at an example: Coca-Cola is a large manufacturer and retailer of non-alcoholic beverages, such as sodas, juices, sports drinks, and teas. They are looking to grow and are considering entering the beer market in the United States. Should they enter?

In order for you to decide whether Coca-Cola should enter the beer market, you likely have many different questions you’d like to ask:

Does Coca-Cola know how to produce beer?
Would people buy beer made by Coca-Cola?
Where would Coca-Cola sell its beer?
How much would it cost to enter the beer market?
Will Coca-Cola be profitable from selling beer?
How would Coca-Cola outcompete competitors?
What is the size of the beer market in the United States?

This is not a very structured way of thinking through the case. The questions are listed in no particular order. Additionally, many of the questions are similar to one another and could be grouped together.

A case framework would provide a structure to organize these ideas and questions in a way that is easy to understand.

A framework for this case might look like the following.

Notice that we have simplified the list of questions we had into four main categories. These broad categories are frequently called framework “buckets.” Also notice that we have grouped similar questions together under each framework bucket.

This case framework tells us what areas we need to explore in order to make a recommendation to Coca-Cola. It also clearly shows what questions we need to answer under each area.

This is the power of a case interview framework. It simplifies a complex business problem into smaller and separate components that we can tackle one at a time.

So how do you develop a case framework? The next section will reveal four robust strategies for creating unique and tailored consulting frameworks for any case interview.

Case Interview Framework Strategies

There are four case interview framework strategies you should have in your toolkit:

When given a case interview, you will need to decide which framework strategy you want to use. Some framework strategies will be more effective than others depending on what type of case interview you get.

Therefore, choose the case framework strategy that is easiest for you given the type of case that you get.

This case framework strategy can be used for any type of case. This is the most time-consuming strategy, but yields case frameworks that are the most tailored and unique for the given case interview.

To create a framework from scratch, ask yourself what 3 – 4 statements must be true for you to be 100% confident in your recommendation. These 3 – 4 areas will become the buckets in your framework.

Once you have your framework buckets, brainstorm a few questions for each bucket that you need answers to.

Let’s return to the Coca-Cola case example in which we are asked to determine whether or not they should enter the beer market. What 3 – 4 statements must be true for us to recommend that Coca-Cola should enter the beer market?

The four major statements that must be true are:

The beer market is an attractive market
Competitors in the market are weak
Coca-Cola has the capabilities to produce outstanding beer
Coca-Cola will be highly profitable from entering the beer market

These will be the major areas or buckets in our framework.

Creating Frameworks from Scratch: Framework Areas

Next, let’s add a few bullet points under each area to add more detail to our case framework.

To determine whether the beer market is attractive, we would need to know the market size, the market growth rate, and the average profit margins in the market.

To assess whether the market is competitive, we would need to know who the competitors are, how much market share they have, and if they have any differentiation or competitive advantages.

To decide whether Coca-Cola has the capabilities to produce beer, we need to know if there are any capability gaps or if there are significant synergies that Coca-Cola can leverage.

Finally, to determine the expected profitability of entering the market, we would need to know what expected revenues are, what expected costs are, and how long it would take Coca-Cola to break even.

This gives us our case framework.

Creating Frameworks from Scratch: Framework Example

You can repeat this process for any case interview that you get to create an outstanding case framework.

Strategy #2: Memorizing 8 – 10 Broad Business Areas to Make a Framework

Creating case frameworks from scratch can be quite time-consuming. Because of this, many interview candidates make the mistake of using memorized frameworks for case interviews.

Candidates will either use a single memorized framework for every case or memorize a different framework for every type of case interview.

The issue with using memorized frameworks is that they aren’t tailored to the specific case you are solving for. When given an atypical business problem, your framework areas or buckets will not be entirely relevant.

A poor framework makes the case interview significantly more difficult to solve.

Additionally, Interviewers can easily tell that you are regurgitating memorized information and not thinking critically.

Instead of creating frameworks from scratch each time, this second case framework strategy provides a method to speed up the process while still creating frameworks that are unique and tailored to the case. Additionally, you won’t need to memorize multiple different frameworks.

First, memorize a list of 8 - 10 broad business areas, such as the following:

Framework Memorizing 8 - 10 Business Areas

When given a case, mentally run through this list and pick the 3 - 5 areas that are most relevant to the case.

This will be your framework.

If the list does not give you enough areas for your framework, brainstorm and add your own ideas as areas to your framework.

Finally, add a few bullet points under each area to add more detail to your case framework.

This strategy guarantees that your framework elements are relevant to the case. It also demonstrates that you can create unique, tailored frameworks for every business problem.

Let’s return to the Coca-Cola case example in which we are asked to determine whether or not they should enter the beer market.

Running through our list of memorized framework areas, the following six areas would be relevant:

Market attractiveness : Is the beer market attractive?
Competitive landscape : How tough is competition?
Company capabilities : Does Coca-Cola have the capabilities to enter the market?
Profitability : Will Coca-Cola be profitable from entering the market?
Risks : What are the risks of entering the market?
Strategic alternatives : Are there other more attractive markets Coca-Cola should enter?

You can pick 3 – 5 of these areas as the basis for your framework.

This strategy is a shortcut for creating unique and tailored frameworks for every business problem. Even if you and a friend used this same strategy, you both may end up with different frameworks.

That is completely fine. As long as the buckets in your framework are major areas and are relevant to the case, your case framework will be significantly better than most candidates’ frameworks.

You do not need to develop a framework entirely from scratch every time to create outstanding case frameworks. This case framework strategy can be applied to over 90% of case interviews.

For the remaining 10% of case interviews, you will need to learn and use the next two case interview framework strategies.

Strategy #3: Breaking Down Stakeholders to Make a Framework

The first two case framework strategies can be applied to over 90% of cases. However, some cases may require you to identify and focus on various stakeholders that are involved in running or operating a business.

For these cases, the primary areas of your case framework will be these major stakeholders.

Let’s take a look at an example: Your client is a non-profit blood bank. They have volunteer nurses that go to schools and companies to collect blood from donors. They then sell this blood to hospitals, which use this blood for emergency situations when a blood transfusion is required. Currently, Hearts4Lives is not profitable because they are not able to collect enough blood to sell to their hospital partners. What can they do to fix this?

This case involves many different stakeholders:

Volunteer nurses
Blood donors
Schools and companies

For cases in which many different stakeholders are involved, it will be useful to look at each stakeholder and determine what each could do to address the problem.

One potential framework could look like the following:

Breaking Down Stakeholders Framework Example

Strategy #4: Breaking Down Processes to make a Framework

Similar to the previous case framework strategy, some cases may require you to focus on improving or optimizing a particular process.

For these cases, the primary areas of your case framework will be each major step of the process.

Let’s take a look at an example: Your client is a waste disposal company that manages a fleet of drivers and garbage trucks that go to residential homes, collect garbage, and then dump the garbage in city landfills. They have an obligation to collect each home’s garbage once a week. Recently, they have been failing to meet this requirement and are backed up with garbage disposal requests. What is causing this issue and what should they do to fix it?

For cases involving processes and efficiencies, it can be helpful to look at the different components or steps in the process.

We can think about the process of collecting and disposing of garbage in the following steps:

Get in a garbage truck
Drive along a designated route
Collect garbage at each stop
Dispose of the garbage in the landfill

Using these steps as the primary areas of our framework, we can create the following case framework:

Breaking Down Processes Framework Example

Once you have systematically listed all of the steps in a process, you can identify the pain points or bottlenecks that are causing the issue and determine ways to improve the process.

Strategy #5: Two-part MECE Frameworks

An easy way to make a 100% MECE framework is to use a two-part MECE framework. For the first step, start with a X and Not X framework. Some examples include:

Internal / external
Short-term / long-term
Economic / non-economic
Quantitative / qualitative
Direct / indirect
Supply-side / demand-side
Upside / downside
Benefits / cost

There are probably hundreds more frameworks that follow this pattern.

These frameworks are by definition 100% MECE. Since all of these frameworks are X or Not-X, they are mutually exclusive. There is no redundancy or overlap between X and Not-X.

Together, X and Not-X are also completely exhaustive. They cover the universe of all ideas and possibilities.

The X and Not-X framework by itself is good enough for a lot of the questions you could get asked in a case interview.

If you’re asked to brainstorm ways to decrease costs, you can create a framework consisting of decreasing variable costs and decreasing non-variable costs, also known as fixed costs.

If you’re asked to brainstorm barriers to entry, you can create a framework consisting of economic barriers to entry, such as cash and equipment, and non-economic barriers to entry, such as brand name or distribution channels.

However, to take your framework to the next level and truly impress your interviewer, we have the option of doing step two.

Step two involves adding another layer of X and Not X into your framework. What do we mean by this?

Let’s say you are trying to help a city decide whether they should host the upcoming summer Olympics. You start off with a framework consisting of benefits and costs. You can take this framework to the next level by adding another layer, such as adding in short-term and long-term.

With this additional layer, your framework now has four categories: short-term benefits, long-term benefits, short-term costs, and long-term costs. This is a 100% MECE framework that enables you to think through all possible considerations in deciding whether a city should host the Olympics.

Let’s look at another example. Suppose you are trying to figure out how to reduce a company’s costs. You start with a framework consisting of variable costs and fixed costs. You can take this framework to the next level by adding another layer, such as direct and indirect.

With this additional layer, your framework now has four categories: ways to directly reduce variable costs, ways to indirectly reduce variable costs, ways to directly reduce fixed costs, and ways to indirectly reduce fixed costs. This is another 100% MECE framework.

Case Frameworks: The 6 Most Common Frameworks

There are six common case frameworks in consulting case interviews.

Profitability frameworks are the most common types of frameworks you’ll likely use in consulting first round interviews.

A profitability case might look like this: “An electric car manufacturer has recently been experiencing a decline in profits. What should they do?”

There are two steps to solving a profitability case.

First, you need to understand quantitatively, what is the driver causing the decline in profits?

You should know the following basic profit formulas.

Is the decline in profitability due to a decline in revenue, an increase in costs, or both?

On the revenue side, what is causing the decline? Is it from a decrease in quantity of units sold? If so, is the decrease concentrated in a particular product line, geography, or customer segment?

Or is the decline due to a decrease in price? Are we selling products at a lower price? Is there a sales mix change? In other words, are we selling more low-priced products and fewer high-priced products?

On the cost side, what is causing the increase in costs? Is it from an increase in variable costs? If so, which cost elements have gone up?

Or is the increase in costs due to an increase in fixed costs? If so, which fixed costs have gone up?

Next, you need to understand qualitatively, what factors are driving the decline in profitability that you identified in the previous step.

Looking at customers, have customer needs or preferences changed? Have their purchasing habits or behaviors changed? Have their perceptions of the company changed?

Looking at competitors, have new players entered the market? Have existing competitors made any recent strategic moves? Are competitors also experiencing a decline in profitability?

Looking at the market, are there any market trends that we should be aware of? For example, are there new technology or regulatory changes? How do these trends impact profitability?

Putting all of this together, we get the following profitability framework.

Once you have gone through this profitability framework and understand both quantitatively what is causing the decline in profits and qualitatively why this is happening, you can begin brainstorming ideas to address the profitability issue.

Among the ideas that you brainstorm, you can prioritize which recommendations to focus on based on the level of impact and ease of implementation.

See the video below for an example of how to solve a profitability case using this profitability framework.

Market entry frameworks are the second most common types of frameworks you’ll likely use in consulting first round interviews.

A market entry case might look like this: “Coca-Cola is considering entering the beer market in the United States. Should they enter?”

To create a market entry framework, there are typically four statements that need to be true in order for you to recommend entering the market:

The market is attractive
Competition is weak
The company has the capabilities to enter
The company will be highly profitable from entering the market

These statements form the foundation of our market entry framework.

Note the logical order of the buckets in the framework.

We first want to determine whether the market is attractive. Then, we need to check if competition is weak and if there is an opportunity to capture meaningful market share.

If these two conditions are true, then we need to confirm that the company actually has the capabilities to enter the market.

Finally, even if the company has the capabilities to enter the market, we need to verify that they will be profitable from entering.

This is a logical progression that your market entry framework will take you through to develop a recommendation for market entry cases.

Merger and acquisition frameworks are also common frameworks you’ll use in consulting interviews.

There are two common business situations.

The first situation is a company looking to acquire another company in order to access a new market, access new customers, or to grow its revenues and profits.

Another situation is a private equity company looking to acquire a company as an investment. Their goal is to then grow the business using their operational expertise and then sell the company years later for a high return on investment.

In either of these situations, mergers and acquisition cases typically involve acquiring an attractive, successful company.

It is rare to get a case in which a company or private equity firm is looking to acquire a poorly performing company to purchase at a discount. Nevertheless, you can always clarify the goal of the merger or acquisition with the interviewer before beginning the case.

In order to recommend making an acquisition, four statements need to be true.

The market that the acquisition target is in is attractive
The acquisition target is an attractive company
The acquisition generates meaningful synergies
The acquisition target is at a great price and will generate high returns on investment

These statements become the basis of our merger and acquisition framework.

Merger and Acquisition Framework Example

Synergies is an area that should absolutely be included in any merger or acquisition framework. A merger or acquisition can lead to revenue synergies and cost synergies.

Revenue synergies include:

Having access to new customer segments
Having access to new markets
Having access to new distribution channels
Cross-selling opportunities
Up-selling opportunities

Cost synergies include:

Eliminating cost redundancies
Consolidating functions or groups
Increasing buying power with suppliers, manufacturers, distributors, or retailers

Pricing frameworks are used in cases involving the pricing of a product or service. To develop a pricing framework, you should be familiar with the three different ways to price a product or service.

Pricing based on costs : set a price by applying a profit margin on the total costs to produce or deliver the product or service
Pricing based on competition : set a price based on what competitors are charging for products similar to yours
Pricing based on value added : set a price by quantifying the benefits that the product provides customers

Your answer to pricing cases will likely involve a mix of all three of these pricing strategies.

Your pricing framework will look something like the following.

Pricing based on costs will determine the minimum price you can realistically set. Pricing based on value added will determine the maximum possible price. Pricing based on competition will determine which price in between these two price points you should set.

In order to get customers to purchase your product, the difference between your price point and the customer’s maximum willingness to pay must be greater than or equal to the difference between your competitor’s price point and the customer’s maximum willingness to pay for their product.

New product frameworks are used to help a company decide whether or not to launch a product or service.

New product frameworks share many similarities with market entry frameworks. In order to recommend launching a new product, the following statements would need to be true:

The product targets an attractive market segment
The product meets customer needs and is superior to competitor products
The company has the capabilities to successfully launch the product
Launching the product will be highly profitable

Expanding on these areas, your new product framework could look like the following:

A comprehensive guide to market sizing questions and market sizing frameworks can be found in our comprehensive market sizing article. You can also watch the video below:

As a summary, market sizing or estimation questions ask you to determine the size of a particular market or to estimate a particular figure.

There are two different market sizing frameworks or approaches:

Top-down approach : start with a large number and then refine and break down the number until you get your answer
Bottom-up approach : start with a small number and then build up and increase the number until you get your answer

To create your market sizing framework, simply write out in bullet points, the exact steps you would take to calculate the requested market size or estimation figure.

Consulting Frameworks Every Consultant Knows

There are six consulting frameworks that nearly every consultant knows.

I would not recommend using these exact frameworks during a case interview because the interviewer may think you are just regurgitating memorized information instead of thinking critically about the case.

Instead use the four framework strategies that we covered earlier in this article to create tailored and unique frameworks for each case.

Nevertheless, it is helpful to review these common consulting frameworks in order to understand the fundamental concepts and business principles behind them.

Porter’s Five Forces framework was developed by Harvard Business School professor Michael Porter. This framework is used to analyze the attractiveness of a particular industry.

There are five forces that determine whether an industry is attractive or unattractive.

Competitive rivalry: How competitive is the industry?

The more competitive an industry is in terms of number and strength of competitors, the less attractive the industry is. The less competitive an industry is, the more attractive the industry is.

Supplier power: How much power do suppliers have?

Suppliers are companies that provide the raw materials for your company to produce goods or services. The fewer suppliers there are, the more bargaining power suppliers have in setting prices. The more suppliers there are, the weaker bargaining power suppliers have in setting prices.

Therefore, high supplier power makes the industry less attractive while low supplier power makes the industry more attractive.

Buyer power: How much power do buyers have?

Buyers are customers or companies that purchase your company’s product. The more buyers there are, the weaker bargaining power buyers have in setting prices. The fewer buyers there are, the more bargaining power buyers have in setting prices.

Therefore, high buyer power makes the industry less attractive while low buyer power makes the industry more attractive.

Threat of substitution: How difficult is it for customers to find and use substitutes over your product?

The availability of many substitutes makes the industry less attractive while a lack of substitutes makes the industry more attractive

Threat of new entry: How difficult is it for new players to enter the market?

If barriers to entry are high, then it is difficult for new players to enter the market and it is easier for existing players to maintain their market share.

If barriers to entry are low, then it is easy for new players to enter the market and more difficult for existing players to maintain their market share.

A low threat of new entrants makes the market more attractive while a high threat of new entrants makes the market less attractive.

A SWOT framework is used to assess a company’s strategic position. SWOT stands for strengths, weaknesses, opportunities, and threats.

Strengths : What does the company do well? What qualities separate them from competitors?

Weaknesses : What does the company do poorly? What are the things that competitors do better?

Opportunities : Where are the company’s opportunities for growth or improvement?

Threats : Who are the most threatening competitors? What are the major risks to the company’s business?

The 4 P’s framework is used to develop a marketing strategy for a product. The 4 P’s in this framework are: product, place, promotion, and price.

Product : If there are multiple products or different versions of a product, you will need to decide which product to market. To do this, you will need to fully understand the benefits and points of differentiation of each product.

Select the product that best fits customer needs for the customer segment you are focusing on.

Place : You will need to decide where the product will be sold to customers. Different customer segments have different purchasing habits and behaviors. Therefore, some distribution channels will be more effective than others.

Should the product be sold directly to the customer online? Should the product be sold in the company’s stores? Should the product be sold through retail partners instead?

Promotion : You will need to decide how to spread information about the product to customers. Different customer segments have different media consumption habits and preferences. Therefore, some promotional strategies will be more effective than others.

Promotional techniques and strategies include advertising, social media marketing, email marketing, search engine marketing, video marketing, and public relations. Select the strategies and techniques that will be the most effective.

Price : You will need to decide how to price the product. Pricing is important because it determines the profits and the quantity of units sold. Pricing can also communicate information on the quality or value of the product.

If you price the product too high, you may be pricing the product above your customer segment’s willingness to pay. This would lead to lost sales.

If you price the product too low, you may be losing potential profit from customers who were willing to pay a higher price. You may also be losing profits from customers who perceive the product as low-quality due to a low price point.

In deciding on a price, you can consider the costs to produce the product, the prices of other similar products, and the value that you are providing to customers.

The 3 C’s framework is used to develop a business strategy for a company. 3 C’s stands for customers, competition, and company.

The business situation framework was developed by a former McKinsey consultant, Victor Cheng, who added a fourth component to this framework, product.

Both of these frameworks are used to develop a business strategy for a company in a variety of situations, such as market entry, new product launch, and acquisition.

There is another similar framework called the 4C framework that expands upon the 3 C's. The 4C framework stands for customer, competition, capabilities, and cost.

The BCG 2x2 Matrix Framework was developed by BCG founder Bruce Hendersen. It is used to examine all of the different businesses of a company to determine which businesses the company should invest in and focus on.

The BCG 2x2 Matrix has two different dimensions:

Market growth : How quickly is the market growing?
Relative market share : How much market share does the company have compared to competitors?

Each business of the company can be assessed on these two dimensions on a scale of low to high. This is what creates the 2x2 Matrix because it creates four different quadrants.

Each quadrant has a recommended strategy.

Stars : These are businesses that have high market growth rate and high relative market share. These businesses should be heavily invested in so they can continue to grow.
Cows : These are businesses that have low market growth rate, but high relative market share. These businesses should be maintained since they are stable, profitable businesses.
Dogs : These are businesses that have low market growth rate and low relative market share. These businesses should not be invested in and should possibly even be divested to free up cash for other businesses.
Unknown : These are businesses that have high market growth rate and low relative market share. The strategy for these businesses is not clear. With enough investment, these businesses could become stars. However, these businesses could also become dogs if the market growth slows or declines.

The McKinsey 7S Framework was developed by two former McKinsey consultants, Tom Peters and Robert Waterman. The 7S Framework identifies seven elements that a company needs to align on in order to be successful.

These elements are:

Strategy : The company’s plan to grow and outcompete competitors
Structure : The organization of the company
Systems : The company’s daily activities and processes
Shared values : The core beliefs, values, or mission of the company
Style : The style of leadership or management used
Staff : The employees that are hired
Skills : The capabilities of the company’s employees

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McKinsey 7S Case Study

7 comments:.

nice, thank you for the slides , they helped me with my Knowledge ppt :)

Glad you found it helpful. How about posting a link to your Knowledge ppt?

can u plz forward it to me,i am unable to open it,plz send me to [email protected]

Hello Sunita, You will need a PDF reader on your computer, then you will be able to open it.

can i have a copy?

Of course you can. Just click on the link in the text.

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Slide 1 : This slide introduces McKinsey 7S Model Case Study. State Your Company Name and get started. Slide 2 : This is an Agenda slide. State agendas here. Slide 3 : This slide presents a McKinsey 7S Model. The constituents are- Shared Values, Strategy, Structure, Systems, Staff, Style, Skills. Slide 4 : This slide presents segregated McKinsey 7S Model- Seven Elements into- Hard Elements (Strategy, Structure, Systems) Soft Elements (Shared Values, Skills, Staff, Style). Slide 5 : This slide presents Overview – Hard S’s covering- Strategy, Structure, Systems. Slide 6 : This slide showcases S1- Strategy Checklist Questions- What is our strategy? How do we intend to achieve our objectives? How do we deal with competitive pressure? How are changes in customer demands dealt with? How is strategy adjusted for environmental issues? Slide 7 : This slide shows a Business Strategy Template. Slide 8 : This slide showcases S2- Structure Checklist Questions- How is the company/team divided? What is the hierarchy? How do the various departments coordinate activities? How do the team members organize and align themselves? Is decision making and controlling centralized or decentralized? Is this as it should be, given what we're doing? Where are the lines of communication? Explicit and implicit? Slide 9 : This slide presents an Organization Chart Template. Slide 10 : This slide showcases S3- System Checklist Questions- What are the main systems that run the organization? Consider financial and HR systems as well as communications and document storage. Where are the controls and how are they monitored and evaluated? What internal rules and processes does the team use to keep on track? Slide 11 : This slide shows a Business Systems Template. Slide 12 : This slide presents Overview – Soft’s with- The 4Ss across the bottom of the model are less tangible, more cultural in nature, and were termed ‘Soft Ss’ by McKinsey: Skills : The capabilities and competencies that exist within the company. What it does best. Shared Values : The values and beliefs of the company. Ultimately they guide employees towards ‘valued’ behavior. Staff : The Company’s people resources and how they are developed, trained, and motivated. Style : The leadership approach of top management and the company’s overall operating approach. Slide 13 : This slide presents S4- Shared Values Checklist Questions- What are the core values? What is the corporate/team culture? How strong are the values? What are the fundamental values that the company/team was built on? Slide 14 : This slide presents Shared Values- Trust and Consideration, Team Spirits, Customer Satisfaction, Cultural Diversity, Environmental Consciousness, Professionalism. Slide 15 : This slide showcases S5- StyleChecklist Questions- How participative is the management/leadership style? How effective is that leadership? Do employees/team members tend to be competitive or cooperative? Are there real teams functioning within the organization or are they just nominal groups? Slide 16 : This slide is titled Leadership Style Template to move forward. Slide 17 : This slide showcases S6- Staff Checklist Questions- What positions or specializations are represented within the team? What positions need to be filled? Are there gaps in required competencies? Slide 18 : This slide presents Resource GAP Analysis Template. Slide 19 : This slide showcases S7- Skills Checklist Questions- What are the strongest skills represented within the company/team? Are there any skills gaps? What is the company/team known for doing well? Do the current employees/team members have the ability to do the job? How are skills monitored and assessed? Slide 20 : This is Skills GAP Analysis Template slide. Slide 21 : This slide presents Summary- Your Company's 7Ss Shared Values, Strategy, Structure, Systems, Staff, Style, Skills. Slide 22 : This slide showcases a 7-S Framework. Slide 23 : This slide is titled Additional Slides to move forward. Slide 24 : This is Our Mission slide. State company mission here. Slide 25 : This is Meet Our Team slide with names, designation and image boxes. Slide 26 : This is an About Us slide. State company/team specifications here. Slide 27 : This is a Column Chart slide to show product/entity comparison etc. Slide 28 : This is Our Main Goal slide. State goals here. Slide 29 : This is a Comparison slide for showing product/entity comparison. Slide 30 : This is a Financial score slide given in terms of Medium, Minimum and Maximum. Slide 31 : This is a Quotes slide to convey message, beliefs etc. Slide 32 : This is a Dashboard slide to show Low, Middle and High aspects. Slide 33 : This is a Donut pie chart slide to show information, specifications etc. Slide 34 : This is a Scatter chart slide to show information, specifications etc. Slide 35 : This is a Location slide of world map to show global growth, presence etc. Slide 36 : This is a Timeline slide to show highlighting factors, milestones, evolution etc. Slide 37 : This is a Post It Notes slide for events, reminders etc. Slide 38 : This is a Newspaper image slide for showing news, events etc. You can change the slide content as per need. Slide 39 : This is a Puzzle image slide to show information, specifications etc. Slide 40 : This is a Stacked Column slide to show product/entity comparison etc. Slide 41 : This is a Target slide. State targets etc. here. Slide 42 : This is a Circular image slide to show information, specifications etc. Slide 43 : This is a Venn diagram image slide to show information, specifications etc. Slide 44 : This is a Mind map image slide to show information, specifications etc. Slide 45 : This is a Matrix slide to show information, specifications etc. Slide 46 : This is a Lego image slide to show information, specifications etc. Slide 47 : This is a Staked Line with markers slide to show product/entity comparison etc. Slide 48 : This is an Idea image slide to show information, specifications etc. Slide 49 : This is a Hierarchy slide to showcase team/departments etc. specifications. Slide 50 : This is a Coffee Break slide to halt. You can change the slide content as per need. Slide 51 : This is a Line Chart slide to show information, specifications etc. Slide 52 : This is a Magnifying Glass image slide to show information, specifications etc. Slide 53 : This is a Bar Graph slide to show product/entity comparison etc. Slide 54 : This is a Funnel image slide to show information, specifications etc. Slide 55 : This is a Thank You slide with Address# street number, city, state, Contact Numbers, Email Address.

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Enduring Ideas: The 7-S Framework
Podcast. Enduring Ideas: The 7-S Framework. Featured in the book In Search of Excellence, by former McKinsey consultants Thomas J. Peters and Robert H. Waterman, the framework maps a constellation of interrelated factors that influence an organization's ability to change. The lack of hierarchy among these factors suggests that significant ...
McKinsey 7S model of Nokia
By Iulia-Cristina Uță Friday / February 5 / 2021. From a cell phone pioneer to being acquired by Microsoft in 2013, Nokia is a case study of organizational failure. Let's analyze where the company went wrong by applying McKinsey 7S model. McKinsey 7S model is a business framework which can be used to analyze organizational effectiveness.
Coca-Cola & Mckinsey's 7 S framework
According to research done by Nejad, et al., (2015) "McKinsey 7s is a tool to analyze company design by seven key factors internal elements: Structure, strategy, Systems, Skills, Style, Staff, and ...
McKinsey 7S Model: The 7S Framework Explained
McKinsey 7S model is a tool that analyzes company's organizational design by looking at 7 key internal elements: strategy, structure, systems, ... The article has explained comprehensively well how the 7S McKinsey framework works. 🙂 The case studies illustrated clearly how alignment should be investigated. Thank so much. Tina Saulo. Reply.
The McKinsey 7S Model Explained With a Practical Example
In the 1980s, three McKinsey consultants, Tom Peters, Robert Waterman, and Julien Philips created a tool that would prove to be one of the best tools to examine organizational design—the McKinsey 7S Model. They created a list of seven internal factors that determine an organization's efficiency, which is as follows: Strategy. Structure. Systems.
McKinsey 7S Model
The McKinsey 7S Model refers to a tool that analyzes a company's "organizational design.". The goal of the model is to depict how effectiveness can be achieved in an organization through the interactions of seven key elements - Structure, Strategy, Skill, System, Shared Values, Style, and Staff. The focus of the McKinsey 7s Model lies ...
PDF A Case Study of the Application of the McKinsey 7-S Framework 20
That said, the model provides a framework that allows a structured analysis of a company's competitive position. In this paper we demonstrate a 7-S analysis by presenting the results from a case study of the Ithaca Beer Company (IBC), which examines the relative importance of the 7-S factors.
How to Use the McKinsey 7S Framework: Strategic Alignment Essentials
The McKinsey 7S Framework emphasizes the importance of alignment between seven key internal factors: strategy, structure, systems, shared values, skills, style, and staff. ... However, case studies also emphasize the framework's disadvantage, which can be its complexity and the time consumption in addressing all seven elements effectively. ...
The McKinsey 7S Model with Real-Life Case Studies
The McKinsey 7S Model provides a comprehensive framework for organizations to evaluate and align their internal elements effectively. By harmonizing strategy, structure, systems, skills, staff, style, and shared values, companies can create a unified and high-performing entity. Real-life case studies, like General Electric and Coca-Cola ...
Enhancing Organizational Success: McKinsey 7S Model
Real-life case studies, like General Electric and Coca-Cola, demonstrate the McKinsey 7S Model's practical application in driving transformation and achieving long-term success. The model has surely provided organizations with a comprehensive framework to evaluate and align their internal elements in a super effective way.
Starbucks McKinsey 7S' Framework
Starbucks McKinsey 7S model is used to highlight the ways in which seven elements of businesses can be aligned to increase effectiveness. According to this model, strategy, structure and systems represent hard elements. At the same time, shared values, skills, style and staff are soft elements. McKinsey 7S model stresses the presence of strong ...
How McKinsey's 7S Model Can Enable Successful Digital Transformations
The McKinsey 7S Model is an academic framework widely taught in business and MBA programs worldwide. However, its significance extends beyond the academic realm, playing a vital role in facilitating successful digital transformations. This discussion aims to explore the application of the McKinsey 7S Model in the context of digital transformation.
IKEA McKinsey 7S Model
August 17, 2022. IKEA McKinsey 7S model explains how individual elements of businesses can be aligned to increase the overall effectiveness. McKinsey 7S framework considers strategy, structure and systems as hard elements, whereas shared values, skills, style and staff are accepted as soft elements. The framework stresses the presence of strong ...
(PDF) The use of McKinsey s 7S framework as a strategic planning and
In this study, McKinsey's 7S's dimensions have been clustered with the digital transformation criteria. ... The framework was proposed to a real case of Shiraz distribution ... The McKinsey 7S ...
PDF Implementing Mckinsey 7S Model of Organizational Diagnosis and Planned
The case analysis utilized secondary data acquired through a case study performed on BW Italy during the implementation of the program. Data was analyzed through the McKinsey 7s Model an effective tool used in analyzing organizational change. The model helped depict how effectiveness can be achieved within an
Utilizing Mckinsey 7s Model, SWOT Analysis, PESTLE and Balance
theoretical framework that explains the utilization of the Mckinsey 7s model, SWOT Analysis, PESTLE and BSC as tools for efficient strategy implementation. 2.1 The Conceptual Framework
[Pdf] Analysis of Company Capability Using 7s Mckinsey Framework to
The 7s McKinsey's framework (1980) was used to analyze this research. This framework identifies seven dimensions that a company must possess to maintain its success. ... (CASE STUDY: PT X INDONESIA) @article{Putri2021ANALYSISOC, title={ANALYSIS OF COMPANY CAPABILITY USING 7S MCKINSEY FRAMEWORK TO SUPPORT CORPORATE SUCCESSION (CASE STUDY: PT X ...
Theory applied to informatics: The McKinsey 7-S Framework
The McKinsey 7-S Framework was developed by Robert Waterman, Tom Peters, and Julien Phillips who were consultants working for McKinsey and Co. in the late 1970s with the help of Tony Athos and Richard Pascale. Since then it has been applied as a change management and holistic organizational quality model in many avenues of business and is "a ...
(PDF) Implementing integrated marketing solutions in business
Using McKinsey 7S Model to Mea sure Performance of The Banks, Case Study:Banks In Ouargla Province. PalArch's Journal of Archaeology of Egypt / Egyptology, 19(1), 2161 - 2175.
Case Interview Frameworks: The Ultimate Guide (2024)
A case framework would provide a structure to organize these ideas and questions in a way that is easy to understand. A framework for this case might look like the following. ... The McKinsey 7S Framework was developed by two former McKinsey consultants, Tom Peters and Robert Waterman. The 7S Framework identifies seven elements that a company ...
McKinsey 7S Case Study
McKinsey 7S Case Study. In response to my original article on the McKinsey 7S framework, @anniehu123 very generously sent me this PDF case study describing how ABC Company uses the McKinsey 7S framework for Organisational Development (OD). What I particularly like about this case study is how effectively it demonstrates that frameworks can and ...
Mckinsey 7s Model Case Study PowerPoint Presentation Slides
Mckinsey 7s Model Case Study PowerPoint Presentation Slides. Every organization needs to adapt to the ever-changing business environment. Sensing this need, we have come up with these content-ready change management PowerPoint presentation slides. These change management PPT templates will help you deal with any kind of an organizational change.
Mckinsey 7s Model Case Study Powerpoint Presentation Slides
With support of our excellent Mckinsey 7s Model Case Study presentation deck you can easily cover topics like agenda, strategy, structure, systems, staff, style, skills and shared values, hard values, soft values, business strategy, resource GAP analysis, skill GAP analysis, 7-S framework, etc. With so many potential customers, it's absolute ...

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McKinsey 7S Model

Definition of the McKinsey 7S Model

What is the McKinsey 7S Model

Shared Values

Using the McKinsey 7S framework

Step 1. Identify the areas that are not effectively aligned

Step 2. Determine the optimal organizational design

Step 3. Decide where and what changes should be made

Step 4. Make the necessary changes

Step 5. Continuously review the 7S

Example of McKinsey 7S Model

McKinsey 7S Example (1/3)

McKinsey 7S Example (2/3)

McKinsey 7S Example (3/3)

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How to Use the McKinsey 7S Framework: Strategic Alignment Essentials

Key Takeaways

Understanding the McKinsey 7S Framework

Overview of the Hard and Soft Elements

Origins and Evolution of the Framework

Assessing the Seven S Elements

Strategy Analysis

Structure Review

Systems Evaluation

Shared Values Assessment

Skills Analysis

Style Examination

Staff Analysis

Applying the 7S Model

Strategic Planning and Alignment

Managing Organizational Change

Achieving and Sustaining Alignment

Decision-Making and Problem-Solving

Organizational Design and Effectiveness

Examining Organizational Hierarchy

Designing Effective Workflow

Leveraging Human Resources

Enhancing Performance and Competitive Advantage

Identifying and Leveraging Capabilities

Benchmarking and Opportunities

Adapting to the External Environment

Analyzing and Addressing Challenges

Conducting Thorough SWOT Analysis

Addressing Misalignments and Inconsistencies

Measuring and Improving Organizational Effectiveness

Utilizing Performance Standards and Metrics

Investing in Training and Development

Case Studies and Practical Applications

Real-World Examples from Industry

Lessons Learned from Successful Implementations

Frequently Asked Questions

What is the McKinsey 7S Framework and how is it applied in strategic management?

Can you provide an example of how a company has successfully applied the McKinsey 7S Framework?

What are the hard and soft elements of the McKinsey 7S Framework, and why are they important?

What are the advantages and disadvantages of utilizing the McKinsey 7S Model in organizational analysis?

How is the McKinsey 7S Framework beneficial for implementing effective change within an organization?

What steps should be taken to effectively apply the McKinsey 7S Framework when formulating a new strategy?

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