McKinsey’s 7s

framework
Introduction
• A framework for organizational effectiveness
• Postulates that there are seven internal factors of
an organization that need to be aligned and
reinforced in order for it to be successful.

When to use?
• Improve the performance of your organization
• Determine the best way to implement a proposed
strategy
• Examine the likely effects of future changes in the
organization
• Align departments and processes during a merger
or acquisition
McKinsey’s 7s framework:
Case Study
Reliance IndustriesShared
Limited
Values
•Customer Value Skills
Skills
••Employees
Employees have have diverse
diverse skill
skill sets
sets suitable
suitable
Systems •Ownership for job
for job
Systems
••Safety
Mindset ••Emphasises
Emphasises on on employee
employee training
training and
and
Safety first
first
••Risk
Risk Management
Management and and Internal
Internal
•Respect adaption of
adaption of latest
latest technologies
technologies
Control •Integrity ••Known
Known forfor its
its over-exertion
over-exertion of
of employees
employees
Control System
System
••Health,
Health, Safety,
Safety, Security
Security and
and •One Team
Environment
Environment (HSSE)
(HSSE)
••Ethics
•Excellence
Ethics
Staff
Strategy
Strategy Style
• Special emphasis on Style
••Sustainable
Sustainable development
development
employee training and •• Top
Top management
management controls
••Profitable
Profitable growth
growth and
and use
use of
of
competency building
controls
technology strategic
strategic decision
decision making
making
technology
Structure • Recruitment on the basis of
••Competency
Competency building
building •• Lower
Lower level
level employees
employees are
are
••Stakeholders’
Stakeholders’ value
value creation
creation • Divisional merit and educational involved
involved in
in operational
operational decision
decision
••Capital
Capital productivity
productivity and
and • Tall Structure qualifications making
making
operational efficiency
operational efficiency • Various management • Targets the world market for •• Prioritise
Prioritise health,
health, safety
safety and
and
committees talent environment
environment