OD & Leadership HRMT 5180

Mckinsey 7S Model

Group Members
Raminder Kaur
Manpinder Kaur
Rahul Chhabra
Samridhi
Sonam
Introduction

• Developed in 1980
• By two famous consultants Tom Peter and Robert H. Waterman
• With assistance from Richard Pascal and Anthony G. Athos
• Used for strategic planning
• Include 7 elements such as strategy, structure, system, skills, staff, style
and shared values.
• Elements must be aligned together to operate effectively the organization

Seven Application Advantages &

Introduction Uses Example References
Elements s Disadvantages
 Soft ‘S’
Hard ‘S’
• Structure: Includes who is • Skills: Capabilities and competences
accountable to whom. possessed by employees.

• System: Process and procedure of • Staff: how employees are recruited,

the company which reveals how trained, motivated and rewarded.
decisions can be made.

• Style: How top-level managers represent

• Strategy: Plan to achieve the company.
sustained competitive advantage.

• Shared Values: Company’s norms and

actions to create values.

Seven Advantages &

Introduction Elements
Uses Applications
Disadvantages
Example References
Uses

• To facilitate organizational change.

• To help in implementing new strategy.
• To identify how each area may change in a future.
• To facilitate the merger of organization.

Seven Application Advantages &

Introduction Uses Example References
Elements s Disadvantages
Applications

Step 1: Identify the areas that are not effectively aligned.

Step 2: Determine the optimal organization design
Step 3: Decide where and what changes should be made.
Step 4: Make the necessary changes

Seven Application Advantages &

Introduction Uses Example References
Elements s Disadvantages
Advantages Disadvantages

• Longstanding theory. • Long-term model.

• Track effectively the impact of • Rely on internal factors
changes of elements. • Not effective when external
factors influence the
organization.

Seven Application Advantages &

Introduction Uses Example References
Elements s Disadvantages
 Nokia’s Mckinsey’s 7S Model
Structure
• Top line structure
• Decentralized and agile structure needed to compete with technological
environment
Strategy
• Options for the company :-optimizing costs and volume, maximizing
performance, or maximizing security.
• Nokia chose optimizing cost which made it impossible to excel in software

Seven Application Advantages &

Introduction Uses Example References
Elements s Disadvantages
Model continued
Style
• Top managers had business background but lacked technological competence
• Morale of Employees was low
• Effective transformation in leadership was required to foster innovation and creativity .
Skills
• The issue was with upper management.
• The role of Chief Technology Officer (CTO) vanished from the top management team between 2007 and 2010.
• Apple's top executives, on the other hand, were all engineers. Nokia should have focused on improving the
technical skills of its top leaders.
Staff
Employees were business oriented and lacked technical skills which is a significant requirement for software
company
 References

Jurevicius, O. (2021, November 11). McKinsey 7S Model. Strategic Management Insight.

https://strategicmanagementinsight.com/tools/mckinsey-7s-model-framework/
Brandminds Live (2021, February 5). McKinsey 7S model of Nokia - where the company went
wrong. https://brandminds.live/mckinsey-7s-model-of-nokia-where-the-company-went-wrong/

Seven Application Advantages &

Introduction Uses Example References
Elements s Disadvantages