1. McKinsey 7 S’s
The McKinsey 7S Framework is a management model developed by well- known business consultants Robert H. Waterman, Jr. and Tom Peters

2. McKinsey 7 S’s
McKinsey 7s model was developed in 1980s by McKinsey consultants Tom Peters, Robert Waterman and Julien Philips.
Since introduction, the model has been widely used by academics and practitioners and remains one of the most popular strategic planning tools.
It sought to present an emphasis on human resources (Soft S), rather than the traditional mass production tangibles of capital, infrastructure and equipment, as a key to higher organizational performance

3. The McKinsey model represents the connections between seven areas and divides them into ‘Soft Ss’ and ‘Hard Ss’

4. McKinsey 7 S’s
The model can be applied to many situations and is a valuable tool
when organizational design is at question.
The most common uses of the framework are:
To facilitate organizational change.
To help implement new strategy.
To identify how each area may change in a future.
To facilitate the merger of organizations.

5. McKinsey 7 S’s
7s Factors
7 Factors
In McKinsey model, the seven areas of organization are divided into the ‘soft’ and ‘hard’ areas. Strategy, structure and systems are hard elements that are much easier to identify and manage
Soft areas, although harder to manage, are the foundation of the organization and are more likely to create the sustained competitive advantage
Hard s
Soft s
Strategy
Style
Structure
Staff
Systems
Skills
Shared Values

6. McKinsey 7 S’s
Strategy is a plan developed by a firm to achieve sustained competitive advantage and successfully compete in the market. What does a well- aligned strategy mean in 7s McKinsey model? In general, a sound strategy is the one that’s clearly articulated, is long-term, helps to achieve competitive advantage and is reinforced by strong vision, mission and values. But it’s hard to tell if such strategy is well-aligned with other elements when analyzed alone. So the key in 7s model is not to look at your company to find the great strategy, structure, systems and etc. but to look if its aligned with other elements. For example, short-term strategy is usually a poor choice for a company but if its aligned with other 6 elements, then it may provide strong results.
Structure represents the way business divisions and units are organized and includes the information of who is accountable to whom. In other words, structure is the organizational chart of the firm. It is also one of the most visible and easy to change elements of the framework.
Systems are the processes and procedures of the company, which reveal business’ daily activities and how decisions are made. Systems are the area of the firm that determines how business is done and it should be the main focus for managers during organizational change.
Skills are the abilities that firm’s employees perform very well. They also include capabilities and competences. During organizational change, the question often arises of what skills the company will really need to reinforce its new strategy or new structure.
Staff element is concerned with what type and how many employees an organization will need and how they will be recruited, trained, motivated and rewarded.
Style represents the way the company is managed by top-level managers, how they interact, what actions do they take and their symbolic value. In other words, it is the management style of company’s leaders.
Shared Values are at the core of McKinsey 7s model. They are the norms and standards that guide employee behaviour and company actions and thus, are the foundation of every organization.

7. McKinsey 7 S’s
Four primary benefits of the McKinsey
Four disadvantages of the McKinsey
1. It offers an effective method to diagnose and understand an organization
2. It provides guidance in organizational change
3. It combines rational and emotional components
4. All parts are integral and must be addressed in a unified manner
1. When one part changes, all parts change, because all factors are interrelated
2. Differences are ignored
3. The model is complex
4. Companies using this model have been known to have a higher incidence of failure

8. Starbucks McKinsey 7s’ Framework
McKinsey 7S’ Framework is used for effective leadership and management by Starbucks Corporation
Starbucks management have direct influence and control over the hard elements of the framework, whereas the soft elements are usually influenced by corporate culture, and therefore they are more difficult to control.

9. Starbucks McKinsey 7s’ Framework cont.
Hard Elements
Strategy. Starbucks has to be concentrating on the quality of its products at the same time offering excellent level of customer services. The main strategy for the company is to increase revenues through effectively positioning Starbucks stores as ‘third place’ environment.
Structure. Flat management structure needs to be achieved through de-layering. Specifically, the positions of assistant managers need to be eliminated within the stores, after which there will be only three levels of management – store manager, shift manager and customer assistants, thus considerable amount of costs can be saved and organisational efficiency can be increased.
Systems. Rather than daily roles among customer assistant being appointed by shift supervisors, the rotation system of duties needs to be introduced that will reduce the potential of conflicts among the workforce, and the work process would be more interesting.
Soft Elements
Shared values. Currently effective set of values are being promoted by management at Starbucks, however, more effective initiatives and programs need to be devised that would ensure these values being shared and appreciated by all members of the workforce.
Skills. Necessary training and development programs need to be organised in a systematic manner and thus it has to be ensured that all members of the workforce are equipped with skills necessary to achieve a high level of customer satisfaction.
Style. Management style within stores should be changed from Laissez Faire to inspirational management.  In this way a greater number of the workforce can be effectively motivated for higher performances with less financial resources.
Staff. Only capable and promising candidates need to be employed by Starbucks and employees have to be provided growth potential.

10. IBM
By sub dividing divisions, IBM was able to optimally organise different parts of its operations according to a specific ‘alignments’
This allowed IBM to develop the personal computer in a specialised ‘new venture’ division separate from traditional mainframe activities which were dominated by hierarchies and vertical accountability which were antagonistic to radical innovation

11. Criticism of strategy frameworks
No amount of reorganising and reshuffling will increase the long-term capability of a business, unless you suit the organisation to the people and to a genuinely shared purpose - Robert Heller

12. Alternative – Cultural Web Strategy Tool
Elements of the Cultural Web
The Cultural Web identifies six interrelated elements that help to make up what Johnson and Scholes call the "paradigm" – the pattern or model – of the work environment. By analyzing the factors in each, you can begin to see the bigger picture of your culture: what is working, what isn't working, and what needs to be changed. The six elements are:
Stories – The past events and people talked about inside and outside the company. Who and what the company chooses to immortalize says a great deal about what it values, and perceives as great behaviour.
Rituals and Routines – The daily behaviour and actions of people that signal acceptable behaviour. This determines what is expected to happen in given situations, and what is valued by management.
Symbols – The visual representations of the company including logos, how plush the offices are, and the formal or informal dress codes.
Organizational Structure – This includes both the structure defined by the organization chart, and the unwritten lines of power and influence that indicate whose contributions are most valued.
Control Systems – The ways that the organization is controlled. These include financial systems, quality systems, and rewards (including the way they are measured and distributed within the organization.)
Power Structures – The pockets of real power in the company. This may involve one or two key senior executives, a whole group of executives, or even a department. The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction.