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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):
1. Strategy;
2. Structure;
3. Systems.
Intangible factors (Soft Ss):
4. Shared values;
5. Skills;
6. Staff;
7. Style.
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.
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