McKinsey 7S Framework

McKinsey 7S Framework: A Guide to Effective Organizational Change

Organizational change is an eternal challenge for companies. In today’s rapidly changing society, companies must constantly evolve their organizations to maintain competitiveness. However, organizational change is not easy. Many companies have had to abandon reform efforts or failed to achieve expected results.

A powerful framework that supports successful organizational change is the McKinsey 7S Framework.

About McKinsey

Before explaining the 7S framework, let’s understand the organization behind it — McKinsey & Company.

McKinsey is not an individual’s name but one of the world’s largest strategy consulting firms. Founded in the United States in 1926, it now has offices worldwide and provides strategic consulting services to clients across various industries.

McKinsey has proposed many innovative management theories and frameworks; among them, the 7S Framework is particularly famous.

What Is the 7S Framework?

The McKinsey 7S Framework was developed in the late 1970s by consultants at McKinsey & Company. It consists of seven elements that enable a multifaceted analysis of an organization’s current state and help identify issues. Even more than 30 years after its introduction, it remains a valuable tool for driving effective organizational change.

The Seven Elements Comprising the Organization

The framework is called “7S” because the English names of its seven elements all start with the letter “S.” These elements are:

Strategy

The company’s objectives and the concrete plans to achieve them.

Structure

The organization chart and division of roles across departments.

Systems

The mechanisms and procedures necessary for organizational operations.

Shared Values

The core values and beliefs shared across the organization.

Skills

Skills and knowledge possessed by employees.

Staff

The employees within the organization.

Style

The leadership and decision-making styles of the organization.

“Hard S” and “Soft S”

The 7 elements cover both “Hard S” elements, which are tangible organizational aspects, and “Soft S” elements, which are intangible cultural or value-based aspects.

Hard / Soft	Element	Characteristics
Hard S (Visible structures and systems)	Strategy, Structure, Systems	Easy to change, Can be modified in a short period, Easy to control
Soft S (Invisible organizational culture and values)	Shared Values, Skills, Staff, Style	Difficult to change, Requires medium- to long-term timeframes, Difficult for management to control

Table1. McKinsey 7S Framework: Classification by Hard and Soft Elements

Interrelation of Elements

By analyzing each element, companies can clearly identify targets for reform. However, each element does not exist independently but is interrelated, which means any change in one element affects others.

Challenges in the 7S Model: Important Factors When Organizational Change Fails

Focusing excessively on one element while neglecting others prevents overall optimization. It is necessary to re-examine the relationships among the elements and enhance their consistency.

Although attention tends to focus on the “Hard S” such as strategy and structure, it is the “Soft S” elements—Shared Values, Skills, Staff, and Style—that play a crucial role in the success of organizational change.

Considering the mutual relationship of “Hard S” and “Soft S,” it is necessary to address the often-overlooked emotional aspects of people. For employees to be fully engaged and confident in change efforts, next-generation leaders must utilize active listening, coaching, and other dialog skills to support their emotional understanding and buy-in.