McKinsey 7S Model: A strategic assessment and alignment model

-IntroductionThe 7S model is a strategic model that can be used for any of the following purposes:

Organizational alignment or performance improvement Understanding the core and most influential factors in an organizations strategy Determining how best to realign an organization to a new strategy or other organization design !amining the current wor"ings and relations an organization e!hibits

The model# made famous by the $c%insey consulting company# is good for a thorough discussion around an organizations activities# infrastructure# and interactions& -The model and its usage'ere is the 7S model that portrays seven elements of an organization&

( define the elements as follows:

Strategy ) This is the organizations alignment of resources and capabilities to *win+ in its mar"et& Structure ) This describes how the organization is organized& This includes roles# responsibilities and accountability relationships& Systems ) This is the business and technical infrastructure that employees use on a day to day basis to accomplish their aims and goals& Shared Values ) This is a set of traits# behaviors# and characteristics that the organization believes in& This would include the organizations mission and vision& Style ) This is the behavioral elements the organizational leadership uses and culture of interaction& Staff ) This is the employee base# staffing plans and talent management& Skills ) This is the ability to do the organizations wor"& (t reflects in the performance of the organization& To assess each of these elements# here are some ,uestions to as": Strategy

-hat is the organizations strategy see"ing to accomplish. 'ow does the organization plan to use its resources and capabilities to deliver that. -hat is distinct about this organization. 'ow does the organization compete. 'ow does the organization adapt to changing mar"et conditions.

Structure

'ow is the organization organized. -hat are the reporting and wor"ing relationships /hierarchical# flat# silos# etc&0. 'ow do the employees align themselves to the strategy. 'ow are decisions made. (s it based off of centralization# empowerment# decentralization or other approaches. 'ow is information shared /formal and informal channels0 across the organization.

Systems

-hat are the primary business and technical systems that drive the organization. -hat and where are the system controls.

'ow is progress and evolution trac"ed. -hat internal rules and processes does the team utilize to maintain course.

Shared Values

-hat is the mission of the organization. -hat is the vision to get there. (f so# what is it. -hat are the ideal versus real values. 'ow do the values play out in daily life. -hat are the founding values that the organization was built upon.

Style

-hat is the management1leadership style li"e. 'ow do they behave. 'ow do employees respond to management1leadership. Do employees function competitively# collaboratively# or cooperatively. 2re there real teams functioning within the organization or are they 3ust nominal groups. -hat behaviors# tas"s and deliverables does management1leadership reward.

Staff

-hat is the size of the organization. -hat are the staffing needs. 2re there gaps in re,uired capabilities or resources. -hat is the plan to address those needs.

Skills

-hat s"ills are used to deliver the core products and1or services. 2re these s"ills sufficiently present and available. 2re there any s"ill gaps. -hat is the organization "nown for doing well. Do the employees have the right capabilities to do their 3obs. 'ow are s"ills monitored# assessed# and improved.

Once the ,uestions are answered# the data should be e!amined& The analysis should loo" for the following aspects:

4onsistency 2lignment 4onflicts 5aps Support Strengths -ea"nesses

The uses of the model can be as a static picture to determine how effectively the organization is implementing its strategy& 2lso# it can be used two6fold with a current state and an intended future state& 7y comparing the current and future states# gaps can be assessed# which lead to improvement and action plans& That latter case ma"es enables the model to be used for large scale change& -Summary8i"e any model# there are good fits and poor fits& This is a handy model for ta"ing a snapshot and comparing that to the desired state or improvement& (t visually shows how everything is lin"ed and understanding the larger implications of change can be very revealing& (t is much li"e how a general doctor can help diagnose a patients situation# but the fine6tuned s"ill of a surgeon can be used to ma"e the specific# desired changed&