The Mckinsey 7-S Framework.
Why do we have frameworks to analyse organisations? We have frameworks to help us learn about an organization. This can be because we are considering investing in an organization, buying it, joining it as a team member, or starting one ourselves. We can also use frameworks to help us improve the organization we are already a part of.
Today, I want to focus on one specific framework developed by the (in)famous management consulting firm Mckinsey & Company. The 7S Framework in the early 1980s is still used today as a tool for managers to analyze and understand their organizations.
The framework looks at seven key elements of an organization: strategy, structure, systems, shared values, staff, style, and skills. The framework is known as a “soft” model because it looks at the intangibles of an organization that are difficult to change.
Let’s take a closer look at each of the 7Ss:
- Strategy: This is the direction that an organization is moving in. What are its goals and how will it achieve them?
- Structure: This is the way that an organization is set up. How are different departments and team organized?
- Systems: These are the processes and procedures that an organization uses to get work done.
- Shared values: These are the beliefs and attitudes that guide an organization.
- Staff: This is the human element of an organization. Who makes up the team and what are their skills?
- Style: This is the way that an organization behaves. How do team members communicate and work together?
- Skills: This refers to the capabilities of an organization. What does it do well and what does it need to improve?
This can be shown in the following graphic:
The reason why Shared Values is in the centre of the graphic is that it is of core importance to all the other elements and that without a strong set of Shared Values, it is difficult to make anything work.
The 7S Framework can be a helpful tool for managers trying to understand their organizations.
The framework categorizes these seven elements into two categories:
- Hard Elements — These are quite easy to identify and, more importantly, management teams can influence these directly by making decisions.
- Soft Elements — These are not as tangible as the hard elements and are significantly influenced by company culture.
The hard elements are strategy, structure, and systems.
The soft elements are shared values, skills, style, and staff.
While the hard elements are easier to control, the soft elements can have a significant impact on an organization. This is because the soft elements are what makeup company culture.
And company culture can be very hard to change.
The 7-S Framework is a helpful tool for managers trying to understand their organizations. However, it is important to keep in mind that the framework is not perfect. One criticism of the framework is that it does not take into account changes in technology and the external environment.
Another criticism is that the framework focuses too much on organizational structure and not enough on people.
Despite its flaws, the 7S Framework remains a popular tool for managers looking to improve their organizations.
How To Use the 7-S Framework.
The 7-S Framework can be used in a variety of ways. Here are some tips:
1. Use the framework as a way to assess your organization. By taking a close look at each of the seven elements, you can get a better understanding of what is working well and what needs to be improved.
2. Use the framework as a guide for change. If you want to make changes to your organization, the 7-S Framework can help you identify which areas to focus on.
3. Use the framework as a tool for communication. When you are trying to explain your organization to others, the 7-S Framework can be a helpful way to do that.
4. Use the framework as a way to troubleshoot problems. If you are having trouble with a particular aspect of your organization, the 7-S Framework can help you find the root cause.
5. Use the framework as a tool for brainstorming. The 7-S Framework can be a helpful way to generate new ideas for your organization.
No matter how you use it, the 7-S Framework is a valuable tool for any manager trying to improve their organization.
For any part of the framework, you always need to be asking where the organization is right now, where it could (and should!) be in the future — and what change needs to happen to support this?
