The McKinsey Framework is also known as the 7S. It includes 7 elements which are:
- STRATEGY - plan devised to maintain and build competitive advantage over the competition
- SKILLS - actual skills and competencies of the employees in the organization
- STRUCTURES - way the organization is structures and who reports to whom
- SYSTEMS - daily activities and procedures that staff members engage in to get the job done
- STYLE - style of leadership adopted
- STAFF - employees and their general capabilities
- VALUES - core values of the organization that are evident in the corporate culture and work ethic
The McKinsey framework was developed by Tom Peters and Robert Waterman in the 1980s. They are two consultants working at the McKinsey & Company consulting firm. The basic premise of the framework is to align all the seven elements in order for the framework to be successful. This model can be used to improve the performance of a company, examine future changes in the company, align departments or processes during a merger or acquisition, and determine how to implement best a proposed strategy.
First, Strategy is the plan of action an organization prepares in anticipation to changes in its external environment. This is different from each organization. It depends on how they create their tactics or operational actions based on past experiences. Strategy is designed to transform the organization from present to future state as described by the objectives of the organization. Second, for Skills, questions like 'What are the strongest skills represented within the company?' and 'How are skills monitored and assessed?' are asked to be able to understand the situation. Next, the Structure of the company often dictates the way it operates and performs. Different organizations have different structures based on their culture and objectives. As for Systems, every organization has a system which they follow and base their day-to-day activities. Customers play an important role in the system because the organization considers creating products and services that are user friendly to their customers. Next, Style means the distinct culture and management style of the organization. The organization's style affects how the members interact and spend their time with others. As for Staff, these are the people who make up an organization. These members are the ones who contribute to the success of the organization. Lastly, Values are which the members of the organization share and are also considered guiding concepts in which the organization is built.
First, Strategy is the plan of action an organization prepares in anticipation to changes in its external environment. This is different from each organization. It depends on how they create their tactics or operational actions based on past experiences. Strategy is designed to transform the organization from present to future state as described by the objectives of the organization. Second, for Skills, questions like 'What are the strongest skills represented within the company?' and 'How are skills monitored and assessed?' are asked to be able to understand the situation. Next, the Structure of the company often dictates the way it operates and performs. Different organizations have different structures based on their culture and objectives. As for Systems, every organization has a system which they follow and base their day-to-day activities. Customers play an important role in the system because the organization considers creating products and services that are user friendly to their customers. Next, Style means the distinct culture and management style of the organization. The organization's style affects how the members interact and spend their time with others. As for Staff, these are the people who make up an organization. These members are the ones who contribute to the success of the organization. Lastly, Values are which the members of the organization share and are also considered guiding concepts in which the organization is built.
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