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McKinsey’s 7-S Framework was first introduced in the
1970s by business consultants Robert Waterman and Tom
Peters in the book In Search of Excellence, who examined the role of coordination in organizational effectiveness. Previous models to this point had focused on organizational structure as the focal point when considering enterprise effectiveness. What Is the McKinsey 7-S Model? • The McKinsey 7-S Model is a change framework based on a company’s organizational design and coordination. It aims to depict how to manage organizational change by strategizing around the interactions of seven key elements: Structure, Strategy, System, Shared Values, Skill, Style, and Staff. Strategy 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. Structure Structure or organizational structure refers to a clear chain of command to avoid chaos & confusion. Structure is a simple yet crucial element as it creates a sense of employee accountability within the organization. Systems
Systems refer to the
business processes and operational procedures employed to complete a business’s routine activities. An organization’s SOPs consist of such practices and workflows that directly impact productivity and decision-making. Shared Values These are the core values governing an organization’s health. While implementing a change, organizations expect a behavioral modification from their employees, which is only possible in a strong change culture and organizational values. Style This element refers to the management style prevalent in a company that decides the level of employee productivity and satisfaction. Staff This element represents the talent pool required, the size of the existing workforce, and their motivations. It also considers how they are trained and rewarded within the organization. Skills Skills refer to the abilities of employees to complete tasks. A study suggests that 45% of respondents reported that a skill gap caused a loss in productivity. Skills gaps overburden experienced employees who have to pick up the slack for their coworkers’ inexperience. It’s essential to identify the skill gaps and create relevant employee training programs to bridge these gaps. Benefits of McKinsey 7s