McKinsey 7-S model business analysis technique
McKinsey 7-S model
This model helps when executing strategy. It helps understand the tangible and intangible factors which can affect the implementation of strategy.
McKinsey’s model supposes that an organisation is made up of 7 components. Four of these are known as ‘hard’ components, and three are known as ‘soft’ components. They are:
Tangible factors (Hard Ss):
Intangible factors (Soft Ss):
4. Shared values;
When implementing strategy, all seven components are inter-linked. The business analyst can consider these components as levers to be pulled. When one component is moved, all the others will be affected.
In the 7-S model, the connections between components are as important as the components themselves. For example, the strategy itself will be flawed if there is a disconnect between the style of management adopted, and the shared values of the organisation.