McKinsey 7S framework

Using the tool. As we pointed out earlier, the McKinsey 7s framework is often used when organizational design and effectiveness are at question. It is easy to understand the model but much harder to apply it for your organization due to a common misunderstanding of what should a wellaligned elements be like.

You can also apply the McKinsey 7S model to elements of a team or a project. The three “hard” elements are strategy, structures (such as organization charts and reporting lines), and systems (such as formal processes and IT systems.) These are relatively easy to identify, and management can influence them directly.

A conceptual framework to guide the execution of strategy. In this guide, we’ll walk you through the 7S of the McKinsey Framework and how to apply it to evaluate and improve performance. The McKinsey 7S model is one of the most popular strategic planning tools.

McKinsey 7S framework diagram

Thinking strategically McKinsey framework

The article is also noteworthy for setting forth McKinsey’s original definition of strategy as “an integrated set of actions designed to create a sustainable advantage over competitors” and includes a description of the wellknown “ninebox” matrix that formed the basis of McKinsey’s approach to business portfolio analysis.

Practical Example. The McKinsey 7S model can be applied in circumstances where changes are being brought into the organization that may affect one or more of the shared values. Suppose a company is planning to undertake a merger. It will affect how the company is organized since new staff will be coming in.

McKinsey’s standard portfolio analysis tool is the ninebox matrix (Exhibit 2), in which each business unit is plotted along two dimensions: the attractiveness of the relevant industry and the unit’s competitive strength within that industry.

Thinking strategically McKinsey framework diagram