McKinsey’s 7-S Framework

The 7-S framework is really all about organizational effectiveness, about understanding an organizations’ ability to change. The beauty of the model is that it shows seven factors that are all interrelated, without a hierarchy. The ability to change and improve one factor is likely related to what happens on a number of other fronts. It can also be a good check list to review when you look at an organizational unit. Most people think about one key issue – the 7-S frameworks helps you make sure you don’t forget anything. The 7-S framework was developed in the 70s by McKinsey, and the bestseller “In Search of Excellence” discussed it extensively.

I was talking to a client today about organizing a strategy review workshop with the extended management team. This client has three distinct businesses, and we were discussing what guiding frameworks we could use for the three different teams to inform their thinking as they prepare for the workshop. Two of the businesses are smaller and newer, and really understanding the market dynamics, customers, competitors etc. is key. The largest business, however, is fairly mature, and the key issues seem to be not so much strategic positioning, but much more “execution.” So in this instance, a 7-S framework could be an interesting reference for the team.

The one thing that I always remember when I look at the 7-S framework is that organization is not just about structure and hierarchy – there are a lot of other factors that play a key role as well.