4 min read Entrepreneurship

The Power of The 7-S Model Framework: Transforming Your Small Business for Success

The Power of The 7-S Model Framework: Transforming Your Small Business for Success

One of my favorite slices of wisdom a wise mentor, Laura Jesseph, once shared with me is the McKinsey 7-S Model Framework.

It has become such an integral part of my process and all of my client's success– that it is no longer an option. It is a must.

The model analyzes an organization's Strategy, Structure, Systems, Skills, Style, Staff, and Shared Values. A business can succeed when these seven S's are aligned in harmony.

Understanding where the entire business stands within this framework allows me to build the right digital tools, develop better relationships, and create impactful work. It helps us think more critically about goals and how your organization could achieve them.

Because I focus on designing digital ecosystems that include a company's website, social media platforms, mobile apps, e-commerce platforms, customer relationship management (CRM) systems, marketing automation tools, and other digital technologies that are used to manage and automate business processes and interact with customers– it's integral to understand the entire business operation.

The McKinsey 7-S Model Framework helps with that.

The McKinsey 7-S Model Framework

The McKinsey 7-S model analyzes an organization's internal structure and the current state of a business to identify areas that need to be aligned or improved to achieve its goals.

Here are the seven S's:

  1. Strategy: The overall direction and plan of the organization, including its goals and objectives.
  2. Structure: The formal and informal ways the organization is divided into departments and teams and how they interact and work together.
  3. Systems: The processes, procedures, and routines used to manage and operate the organization.
  4. Shared Values: The cultural and ideological elements of the organization that shape the behavior and attitudes of its members.
  5. Style: The leadership style and communication methods used within the organization.
  6. Staff: The employees and their skills, experience, and motivation.
  7. Skills: The capabilities and resources of the organization, including its technology, intellectual property, and brand.

The "soft" elements of the model are considered to be the organization's cultural and ideological elements.

  • Shared Values: The cultural and ideological elements of the organization that shape the behavior and attitudes of its members.
  • Style: The leadership style and communication methods used within the organization.
  • Staff: The employees and their skills, experience, and motivation.
  • Skills: The capabilities and resources of the organization, including its technology, intellectual property, and brand.
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The "soft" elements are considered more challenging to measure and change than the "hard" elements, but they are essential for the success of an organization nonetheless.

The "hard" elements of the model are considered to be the organization's more tangible and measurable elements.

These elements include:

  • Strategy: The overall direction and plan of the organization, including its goals and objectives.
  • Structure: The formal and informal ways the organization is divided into departments and teams and how they interact and work together.
  • Systems: The processes, procedures, and routines used to manage and operate the organization.
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The "hard" elements are considered more tangible and measurable, but they can be affected by the "soft" elements and the organization's culture.

By considering all seven elements of the model, businesses can have a holistic understanding of their organization and make informed decisions about improving its performance.

How do You Use the McKinsey Model?

Start by building an effective (and always-evolving) business plan– a document that outlines the overall strategy, goals, and objectives and the actions and resources needed to achieve them.

This can be done in a variety of different ways, such as: conducting a SWOT-Analysis, Market Research, Goal Setting, Strategic Planning, Benchmarking, or setting Key Performance Indicators (KPIs for short).

This will serve as the foundation.

Once your foundation is in place, use the framework to evolve. Explore the seven S's by analyzing, identifying, evaluating, and repeating.

☞ Analyze the organizational structure, and determine if it is conducive to achieving the business's goals.

☞ Identify any areas that need to be modified or improved.

☞ Evaluate the business's processes, procedures, and routines to identify opportunities for improvement and automation.

☞ Understand the company's culture and values and how they align with its goals and objectives.

☞ Assess the company's leadership style and communication methods and how they can be adapted to support the business's goals and objectives.

☞ Evaluate the current staff and identify skills gaps needed to support the business's goals and objectives.

☞ Assess the current staff's skills and provide training and development opportunities to ensure they can keep the business's goals and objectives effectively.

The 7-S Model Framework will help a business better identify the key elements to achieve its goals in its business plan.

By considering all seven elements of the model, businesses can have a holistic understanding of their organization and make informed decisions about improving its performance.

The 7-S Model Framework can be used as a guide for building an effective business plan and monitoring progress over time. It's important to understand that this is not a one-time exercise, but it should be an evolving process. Businesses can continuously improve and achieve their goals by regularly analyzing, identifying, evaluating, and repeating.

Kelsey Atl.

Kelsey Atl.