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Thu, Dec 29, 2022 2:29 PM

McKinsey 7-S model business analysis technique

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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