McKinsey 7-S Framework
As used in the rowing review at St Catherine's School Melbourne
The McKinsey 7-S Framework is a tool developed by McKinsey and Company to assess and analyze an organization's overall effectiveness and performance. It focuses on the interconnectedness of seven key elements. Changes in one element can impact the performance of the other elements.
The Concept:
The framework highlights that all seven elements must be aligned and reinforce each other for an organization to be successful. Changes in one area will likely impact the others, creating a ripple effect.
In essence, the McKinsey 7-S Framework emphasizes the importance of a holistic approach to organizational management and change. By analysing all seven elements, organizations can identify areas of strength and weakness and develop strategies to achieve their goals.
Key Points:
· Hard Ss: Structure, Strategy, and Systems are tangible and easier to define and measure.
· Soft Ss: Shared Values, Skills, Style, and Staff are intangible and influenced by culture.
I have found it particularly useful for:
Strategic reviews - as it gives specific criteria for assessing strengths and weaknesses
Leading organisational change - as it helps identify areas for improvement and potential obstacles
Diagnosing gaps at team or organisational level – as it illuminates specifically where issues may be arising due to a gap or a weakness
Performance appraisal of senior leaders – as it provides a structure for how a leader should be setting up their team/organisation for success
The Seven Elements:
Structure: The organizational chart, roles, responsibilities, and reporting lines.
Strategy: The long-term plan to achieve organizational goals.
Systems: The processes and procedures used to operate the business.
Shared Values: The core beliefs and principles that guide the organization.
Skills: The capabilities and expertise of the workforce.
Style: The leadership style and management approach.
Staff: The employees and their characteristics.
1. Structure
Definition: The formal organization of an enterprise, including its hierarchy, departments, divisions, and reporting lines.
Key elements:
Organisational chart
Job descriptions
Workflows
Decision-making processes
Impact: Determines how work flows through the organization and how resources are allocated.
2. Strategy
Definition: The long-term plan to achieve organizational goals.
Key elements:
Mission and vision
Core competencies
Competitive advantage
Growth strategies
Impact: Defines the direction of the organization and how it will compete in the market.
3. Systems
Definition: The processes and procedures used to operate the business.
Key elements:
Information systems
Financial systems
Manufacturing processes
Customer service processes
Impact: Ensures efficient and effective operations.
4. Shared Values
Definition: The core beliefs and principles that guide the organization.
Key elements:
Corporate culture
Ethic-Values
Assumptions
Impact: Shapes employee behaviour and organizational climate.
5. Skills
Definition: The capabilities and expertise of the workforce.
Key elements:
Employee competencies
Technical skills
Managerial skills
Organizational capabilities
Impact: Determines the organization's ability to execute its strategy.
6. Style
Definition: The leadership style and management approach.
Key elements:
Decision-making styles
Leadership behaviours
Management philosophy
Organizational culture
Impact: Influences employee motivation and performance.
7. Staff
Definition: The employees and their characteristics.
Key elements:
Employee skills
Experience
Number of employees
Diversity
Impact: Determines the organization's human capital and potential.
Could your organisation benefit from a Strategic Review? - reach out to Rosie Rowe Consulting
Source: McKinsey & Company