McKinsey's 7S model

Do you want to do an internal analysis for the client you are writing your thesis for? The 7S model is a tool that can be useful for internal analysis. Using this model, you determine whether the hard elements of an organisation match the soft elements. The idea behind the model is that an organisation is only effective when all these elements (the seven S’s) are in balance. How do you use this model in your thesis?

McKinsey's 7S model assumes that there are seven Ss to consider within an organisation that represent both its hard and soft elements . The elements are:

Hard elements

• Structure: the hierarchy and distribution of tasks and responsibilities within an organisation.
• Strategy: the way an organisation works towards objectives.
• Systems: the procedures, tools and other systems the organisation uses to work effectively and efficiently.

Soft elements

• Staff: the people who work for the organisation, and their strengths and weaknesses.
• Style: the management style of the organisation’s executives.
• Key skills: aspects in which an organisation is strong and which set them apart from competitors (Unique Selling Points).
• Significant values: the organisation's mission and vision that are reflected in its corporate culture.

The significant values (the seventh S) are the connection between all those elements. This is the mission and vision of an organisation. If all goes well, it is reflected in all the other six S’s.

According to McKinsey's 7S model, all these factors must be in harmony. Only then is an organisation able to operate effectively.

Want to apply this model? Then go through each of the S's one by one. You can do your own desk research for this. For instance, look at annual reports, go through the organisation’s website, or study previous surveys. You can also collect primary data yourself by conducting surveys or interviewing the organisation’s managers or employees.

Look at the hard elements first, and the soft elements later. With the hard elements, you often arrive at results that allow you to produce figures and concrete answers. The soft elements are more about abstract topics, such as work culture and employee satisfaction.

Look at the significant values last. Check whether these values are reflected in the other six S’s. This will give you insight into where the company currently stands.

Both strengths and weaknesses emerge from the 7S model. You can incorporate these in a SWOT analysis. Do you want to use McKinsey's 7S model to find out where value is generated within the organisation? Then use Porter's Value Chain.

To help you use this model, we provide you with a few sample questions you can use:

Structure

• What hierarchy does the organisation have?
• How do departments cooperate?
• How is the organisation or team structured?
• Is the current organisation similar to how the company envisions it in an ideal sense?

Strategy

• In what way does the company want to achieve its goals?
• Do their current goals align with their mission and vision?
• Is the approach more customer-focused, product-focused, or market-focused?
• What is the organisation doing to respond to change?

Systems

• What are the most important systems for this organisation?
• What are the internal processes?
• How does the organisation carry out checks?
• What is being done to evaluate the organisation’s systems or processes?
• Are there official procedures that one must follow?

Staff

• What are the specialisations of employees?
• Which competencies still require the employment of an employee?
• What does staff turnover look like?
• How satisfied are the employees?
• To what extent do people cooperate?

Style

• What kind of management style do managers say they employ?
• How do employees perceive the way managers act?
• How do managers deal with conflicts in the workplace?
• To what extent is staff involved in decision-making?
• Do managers give their staff positive feedback?
• Is there a clear hierarchical system between managers and staff?

Key skills

• What does the organisation excel at?
• What sets the organisation apart from the competition?
• What are the distinctive skills of this organisation?
• What skills does the organisation not yet have?
• Why exactly do customers choose this organisation?

Significant values

• What are the company's mission and vision?
• What are the organisation’s core values?
• To what extent are staff aware of the mission, vision, and core values?
• Are the mission, vision and core values well reflected in practice?
• Does management act in accordance with the core values?

McKinsey's 7S model is not the only model that can be useful for your thesis. We list other important models for you. These include the BCG matrix, Maslow's Pyramid and the DESTEP analysis. Take a look at our overview of models. There you will probably find a model that is useful for your analysis.