What is the McKinsey 7S model?
The McKinsey 7S model treats an organization as seven interlocking elements that must be aligned for it to function effectively. McKinsey consultants Robert Waterman, Tom Peters and Julien Phillips introduced it in the 1980 article "Structure Is Not Organization," and it became widely known through *In Search of Excellence* (1982).
- Hard S
- Strategy, Structure, Systems
- Soft S
- Shared values, Style, Staff, Skills
- Center
- Shared values
- Key idea
- Alignment among all seven
The seven elements
| Element | Meaning | Diagnostic question |
|---|---|---|
| Shared values | Core values and beliefs | What do we stand for? |
| Strategy | Plan for competitive advantage | Where and how will we win? |
| Structure | Units and reporting lines | Who reports to whom? |
| Systems | Procedures and processes | How do appraisal, reward and information systems work? |
| Style | Leadership and cultural style | How do leaders decide and behave? |
| Staff | People and workforce | Who works here and how are they developed? |
| Skills | Distinctive capabilities | What are we uniquely good at? |
Will redrawing the org chart change the company? The 7S model began with this question. Many firms restructure first, but if appraisal systems, leadership style and shared values stay the same, behavior does not change. Announcing an innovation strategy while keeping a system that punishes mistakes leaves the elements misaligned and change fails.
How to use it
- Diagnose each element in the current state.
- Define the desired future state.
- Identify misalignments.
- Plan changes so that adjusting one element is matched by the others.
It is common in post-merger integration, strategy rollouts and culture change. Pair it with the balanced scorecard, VRIO and strategic HRM.
Limits
The model shows interdependence but not where to start, and it does not address the external environment directly, so it is often combined with SWOT.
Frequently asked questions
- What are the seven S’s?
- Shared values, strategy, structure, systems, style, staff and skills.
- What separates hard and soft S?
- Hard S elements are easier to define on paper; soft S elements concern culture and people and are harder to change.
- Why are shared values at the center?
- They bind the other six elements together.
References
- Waterman, R. H., Jr., Peters, T. J., & Phillips, J. R. (1980). Structure is not organization. Business Horizons, 23(3), 14–26.
- Peters, T. J., & Waterman, R. H., Jr. (1982). In search of excellence. Harper & Row.