The McKinsey 7s Model is used to map the organization. The internal analysis model identifies the weaknesses and strengths of the company. This article will discuss how the 7s Model McKinsey is applied and what variables are used.
Why do I need the McKinsey 7s Model?
Within the organization you know what is going wrong. There are probably many internal and external problems. You use the 7s Model McKinsey to find out what you can do about those problems. For each factor you analyze which concerns cause a problem and what it takes to solve it. This allows you to identify what works and what doesn’t. So it is actually a tool for the company.
Which variables do I need?
The McKinsey 7s Model is divided into two elements. The first three elements are hard factors and the last four elements are soft factors. Hard factors are things you can carry out and think of, such as mapping the organization. Soft factors are more difficult to influence, as this affects the corporate culture.
- Strategy | Hard factor
- Systems | Hard factor
- Structure | Hard factor
- Shared values Soft factor
- Leadership Styles | Soft factor
- Staff | Soft factor
- Skills | Soft factor
How can I apply the McKinsey 7s Model?
Use the 7s model in the internal analysis of your report. It helps answer the elements.
7s Model Strategy
The results of the questions help to better understand your strategy and the impact of the organization. The strategy determines how you beat the competition and how you become successful. The strategy is consistent with your mission and goals to achieve changes from within the company. The following questions help define the strategy:
- What is your strategy?
- How will your organization achieve its goal?
- How do you deal with your competitive pressure?
- How is the strategy adapted for environmental issues?
7s Model Systems
In systems , employees use the working methods, procedures and also the commitment of the CRM to do their work. Here too you can ask questions to reduce problems for the employees.
- What are the main systems used by the organization? (Financial and HR systems, as well as communication and storage of documents.)
- When are the controls and how are they monitored and evaluated?
- What internal rules and processes does the team use to keep working optimally?
7s Model Structure
To solve problems with the structure , communication between departments and the entire organization is important. We look at the division of tasks, the level of accountability and the quality of maintaining contacts.
- How is the company / team divided?
- What is the hierarchy of the organization?
- How do the different departments coordinate activities?
- Is decision-making and control central or decentralized?
- Does the organization communicate explicitly or implicitly?
7s Model Shared values
The shared values is the center of the 7s Model McKinsey. The relationship between the hard and soft factors is that the shared values provide a direct link to the other six elements. These shared values consist of the values and norms that drive the behavior of those involved in the organization and thus reflect the image of the company.
- What are the core values?
- What is the corporate culture / team culture?
- How strong are the values?
- What are the fundamental values on which the company / team was built?
7s Model Leadership Styles
In leadership styles you will find out the number of layers within the organization. It defines the management style of the company. It is important to find out how many layers the staff have to go through to submit a question / advice or comment / complaint.
- How participative (participating) is the management / management style?
- How effective is that leadership?
- Do employees / team members tend to be competitive or cooperative?
- Do teams work at top level or do they work at normal level within the organization?
7s Model Staff
When staff should be examined how employees work. Are employees rewarded through a reward system if they achieve results that have interests in the company? As an employer, you find out how flexible employees are and whether or not they accept tasks.
- Which positions or specialisms of the personnel represent the team?
- What positions need to be filled?
- Are there gaps in the required competences?
7s Model Skills
You want to know how you distinguish yourself as an organization from the competition and how far the skills among colleagues differ. For both parties, these are the USP, the Unique Selling Point, but in other words the UBR: Unique Buying Reason, because customer benefit is more important than a selling point.
- What are the strongest skills within the company?
- Are there skills gaps?
- Do current employees / team members have the skills to do the job?
- How are skills monitored and evaluated?
What can I get out of it?
There are seven dimensions that ensure a successful business. These variables must be in line with each other. When a change happens, it needs to be consistent with your seven dimensions so you can make an impact on the business.