Developed by consultants at McKinsey & Co., the 7-S model posits that organisations are built on 7 ‘hard’ and ‘soft’ elements:

  • The hard elements are easy to identify: Strategy, Structure and Systems
  • The soft elements are difficult to identify: Style, Staff, Skills and Shared Values
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The Hard Elements

A brief description:

  • Strategy: The long-term direction and scope of the firm
  • Structure: Reporting relationships, areas of expertise
  • Systems: Formal and informal procedures for routine activities

The Soft Elements

A brief description:

  • Skills: Capabilities and competencies. What do we do best?
  • Shared Values: The beliefs guiding employees’ behaviour
  • Staff: Methods of developing, training and motivating people
  • Style: Top management’s leadership approach

What is the purpose of the 7-S?

To achieve total alignment in all 7 areas. This is also known as:

  • Organisational Fit
  • Goal Congruence
  • Isomorphism

The 7-S Model: Achieving Fit

Effective leaders find the right balance between the 7 elements. A change in one element affects the others. For example:

  • New IT Systems influence Staffing and Skilling
  • In turn, Staffing and Skilling influence Performance Expectations

An Example: Accenture

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The 7-S Model: KSFs

Key Success Factors are:

  • The outcomes that the organisation must deliver to achieve or exceed desired goals.
  • They are usually a shortlist of 3-5 functions, activities or processes
  • They may be weaknesses that need to be overcome to deliver on growth.
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For example, possible KSF’s for Snapchat are:

  • To simplify the user interface, making it easier to use
  • To increase the number of active users
  • To attract the older demographic
  • To increase advertising revenue
  • To enhance share price and shareholder value

The 7-S Blank Canvas

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