The McKinsey 7S Model was developed in the late 1970s by Tom Peters and Robert Waterman, who were consultants at McKinsey & Company at the time. They identified the 7 elements in an organization that need to be aligned in order to be successful. The flexibility of the framework means it can also be used to study the effects of future changes in the organization, to align different departments during a merger, or applied to a specific team or project. The 7 elements are broken down into either “Hard” or “Soft” elements, as detailed below:
Hard Elements – Strategy, Structure and Systems:
- Strategy: This is the organization’s plan for building and maintaining a competitive edge over the competition.
- Structure: The refers to the way in which the company is organized in terms of departments, teams, and reporting.
- Systems: These are the day-to-day activities and procedures that people use to get the job done.
While the three “Hard” elements are fairly easy to identify and manage, the four “Soft” elements are less tangible and more influenced by company culture. However, they are just as important to manage as the “Hard” elements if the organization is to be successful.
Soft Elements – Shared Values, Style, Staff, Skill:
- Shared Values: These are the core values of the organization, which are usually outlined with its Mission and Vision Statements. Core values are reflected in the corporate culture and general work ethic. Originally, they were called “superordinate goals” when the model was first introduced.
- Style: This is the style of leadership used within the organization.
- Staff: This refers to the types of employee and their levels of general capability and expertise.
- Skill: This is the actual skills and competencies of the organization’s employees.
The model is usually shown as a circle with shared values in the middle and all of the other elements as spokes around it. By putting shared values in the middle, the model emphasizes that they are central to the development of the other critical elements. In addition, the model stresses that the seven elements need to be in balance in order for the organization to perform at a high level.




