21 May

McKinsey 7S Performance Model

The 7-S model can be used in a wide variety of situations where an alignment perspective is useful, for example, to help you:

  • 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.

Strategy:

  • What is our strategy?
  • How do we intend to achieve our objectives?
  • How do we deal with competitive pressure?
  • How are changes in customer demands dealt with?
  • How is strategy adjusted for environmental issues?

Structure:

  • How is the company/team divided?
  • What is the hierarchy?
  • How do the various departments coordinate activities?
  • How do the team members organize and align themselves?
  • Is decision making and controlling centralized or decentralized? Is this as it should be, given what we’re doing?
  • Where are the lines of communication? Explicit and implicit?

Systems:

  • What are the main systems that run the organization? Consider financial and HR systems as well as communications and document storage.
  • Where are the controls and how are they monitored and evaluated?
  • What internal rules and processes does the team use to keep on track?

Shared Values:

  • What are the core values?
  • What is the corporate/team culture?
  • How strong are the values?
  • What are the fundamental values that the company/team was built on?

Style:

  • How participative is the management/leadership style?
  • How effective is that leadership?
  • Do employees/team members tend to be competitive or cooperative?
  • Are there real teams functioning within the organization or are they just nominal groups?

Staff:

  • What positions or specializations are represented within the team?
  • What positions need to be filled?
  • Are there gaps in required competencies?

Skills:

  • What are the strongest skills represented within the company/team?
  • Are there any skills gaps?
  • What is the company/team known for doing well?
  • Do the current employees/team members have the ability to do the job?
  • How are skills monitored and assessed?
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