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McKinsey Seven-S Tool
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Aurelien Domont
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McKinsey Seven-S tool
Objective
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The Seven-S tool is based on the theory that an
organization is not just Structure, but is
comprised of seven elements distinguished by the
hard S and soft S
The 3 hard S, Structure, Strategy, and Systems,
are practical and easily identifiable. The 4 soft S,
Skills, Staff, Style, and Shared Values, are
somewhat less easily discerned and are less
tangible
The Seven-S diagram depicts how each of the
elements influences, and is influenced by all of the
other elements
Continuously evolving and changing, the soft S
are determined by the people at work in the
organization and hence, are difficult to anticipate or
to influence. Although subterranean in nature, they
can and do have a great impact on the hard S
McKinsey Seven-S tool
Description (1/2)
The model can be used to help identify what needs
to be realigned to improve the organization
performance, or how to maintain alignment during
a period of change
Shared Value
Staff
Strategy
Skill
System
Style
Structure
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McKinsey Seven-S tool
Description 2/2
The plan devised to maintain and build
competitive advantage over the competition
The daily activities and procedures that staff
members engage in to get the job done
The way the organization is structured and
who reports to whom
The employees and their general capabilities
The style of leadership adopted
Called "superordinate goals" when the model
was first developed, these are the core
values of the company that are evidenced in
the corporate culture and the general work
ethic
Style
Strategy Staff
System
Shared
value
Structure
The actual skills and competencies of the
employees working for the company
Skill
The 3 hard S The 3 hard S
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McKinsey Seven-S tool
Template 1/6
What is the strategy?
What is the plan of action to achieve the
objectives?
How does the company deal with
competitive pressure?
How does the company deal with the
changes in customer demands?
What are the main systems used by the
organization? (e.g. accounting systems, HR
systems,)
How those systems are managed?
What is the organizational form?
How do the various business units align
themselves?
How do the various business units
communicate and coordinate activities?
Is decision making centralized or
decentralized?
What is the staff profiles?
What positions are represented within the
team?
What positions need to be filled?
What is the top management style?
Is there a real team spirit within the
organization?
Is there an efficient communication between
the different teams?
Do employees tend to be competitive or
cooperative?
What are the core values of the people in the
organization?
What is the team culture?
What are the key skills represented within
the company/team?
What are the skills requirement?
Are they any skills gaps?
How are skills monitored and assessed?
The 3 hard S The 3 hard S
Step 1: Summarize the current situation
Answer the following
key questions
Answer the following
key questions
Style
Strategy Staff
System
Shared
value
Structure
Skill
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McKinsey Seven-S tool
Template 2/6
Insert your own text
Insert your own text
Insert your own text
Insert your own text
Insert your own text
Insert your own text
Insert your own text
The 3 hard S The 3 hard S
Step 2: Summarize the target situation
Style
Strategy Staff
System
Shared
value
Structure
Skill
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McKinsey Seven-S tool
Template 3/6
Step 3: Double check that the 7 S in your target situation are aligned
Structure Strategy System
Shared
Value
Staff Style Skills
Structure

Strategy




System
O O O

Shared
Value

Staff


Style


Skills

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McKinsey Seven-S tool
Template 4/6
Insert your own text
Insert your own text
Insert your own text
Insert your own text
Insert your own text
Insert your own text
Insert your own text
The 3 hard S The 3 hard S
Step 3: Summarize the main gaps between the current and target situation
Style
Strategy Staff
System
Shared
value
Structure
Skill
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McKinsey Seven-S tool
Template 5/6
Action #1
Action #2
Action #3
Action #1
Action #2
Action #3
Action #1
Action #2
Action #3
Action #1
Action #2
Action #3
Action #1
Action #2
Action #3
Action #1
Action #2
Action #3
Action #1
Action #2
Action #3
The 3 hard S The 3 hard S
Step 4: Create a plan of action to fill the gaps (1/2)
Style
Strategy Staff
System
Shared
value
Structure
Skill
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McKinsey Seven-S tool
Template 6/6
Step 4: Create a plan of action to fill the gaps (2/2)
Week 1 2 3 4 5 6 7 8 9 10 11
Starts on 7/1 14/1
Phase 1
1.1 Action
1.2 Action
1.3 Action
Phase 2
2.1 Action
2.2 Action
Phase 3
3.1 Action
3.2 Action
3.3 Action
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Sources of
information
Structure is Not Organization -Business
Horizons, June 1980
A Brief History of the 7-S ("McKinsey 7-S")
Model - Tom Peters' blog post describing the
origins of the model
McKinsey Seven-S tool
Sources of information
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