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The McKinsey 7S framework is a popular strategic management tool businesses use to analyze their organizations. It helps them understand where they need to improve and how best to chart their growth. Organizations may rely on a McKinsey 7S example to grow and develop sustainable competitive advantage in the market.
The McKinsey model shows how businesses work from different angles. It’s clear from an example of the McKinsey 7S framework that it can work well for most businesses if properly implemented. An example of the McKinsey 7S model can be especially helpful to businesses that want to grow, as it helps identify the areas to develop and improve.
Example Of The McKinsey 7S Model
Before we look at specific examples, this is what the seven Ss of the McKinsey model examines:
1. Strategy
Includes allocation of resources, goals, positioning of the business and plans for growth.
2. Structure
A critical look at the structures of a business necessary to help it run effectively.
3. Style
The style of leadership is one of the most important aspects of growth. Organizational culture flows from the top.
4. Systems
This includes accounting systems, management systems, information systems, billing systems and more. Without systems, an organization can’t grow.
5. Shared Values
This is about culture. Leaders need to know what the business stands for. This percolates through the entity.
6. Staff
The team members, across levels, need skills appropriate for their jobs. They must have the chance to develop so they can grow and perform better.
7. Skills
This focuses on the skills of the staff. Upskilling, reskilling, hiring are assessed on this basis.
As can be seen in a McKinsey 7S example, the framework creates the most impact when businesses use it to analyze their operations and marketing strategies. It helps them look at all parts of the business so that they can improve them.
An example of the McKinsey 7S model at work is when it helps businesses come up with ideas to get out of a rut. It helps you think about what the company is going to look like in the future.
The McKinsey 7S Framework With Company Example
Let’s now look at an example of the McKinsey 7S model at work.
A vacuum manufacturer is struggling with the rapid change in the industry. They want to break into the cordless vacuum space. In an example of the McKinsey 7S framework, this is how they might conduct their planning:
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Strategy:
It’s important for us to identify all the competencies needed for our business. We must make sure we aren’t wasting resources. We also need to be open to learning new technology.
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Structure:
To compete with the existing brands, we will need experience stores at luxury malls and improved online presence.
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Systems:
The existing order and delivery mechanisms will have to be enhanced to cope with the added demand from the new product line.
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Style:
To modernize our 55-year-old company, we will transition to a flatter, less hierarchical system in keeping with our values.
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Shared Values:
Our prior mission statement no longer matches our goals. Our board will create a new mission and vision that applies to us now and puts our employees and customers at its center.
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Staff:
To create dynamic new products, the research and development team needs to be restructured. We will move people from discontinued cleaners into the new department. In keeping with our long-term vision of AI-assisted technologies, we will build up a new unit.
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Skills:
There are 300 workers who will be moved into new departments. There will be no job cuts. This means our in-house training needs will grow significantly. To fulfill our plans, we will also hire engineers with skills in AI and robotics.
In this McKinsey 7S framework with company example, it helps a business look at every pillar of the model and ensures they are up to the task at hand. This can be done in an organization of any size. This McKinsey 7S framework with company example shows how it can be used to assess the existing organization and where it needs to be in each of these foundational areas to meet its goals.
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Explore Harappa Diaries to learn more about topics such as , Benefits of Mckinsey 7s Model, What Is Strategic Group Mapping, Michael Porter Generic Strategies and Quadrants of the Competing Values Framework that will help organizations tap into employee potential.
