The basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful.
The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example to help :
- Improve the performance of a company.
- Examine the likely effects of future changes within a company.
- Align departments and processes during a merger or acquisition.
- Determine how best to implement a proposed strategy.
The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements:
•Strategy: the plan devised to maintain and build competitive advantage over the competition.
•Structure: the way the organization is structured and who reports to whom.
•Systems: the daily activities and procedures that staff members engage in to get the job done.
•Shared Values: these are the core values of the company that are evidenced in the corporate culture and the general work ethic.
•Style: the style of leadership adopted.
•Staff: the employees and their general capabilities.
•Skills: the actual skills and competencies of the employees working for the company.
It is easier for managements to influence ‘hard’ elements, since they are easier to define or identify. They include reporting systems, procedures and IT systems.
‘Soft’ elements, although equally important, are intangible and more related to culture. They are difficult to control or influence.