McKinsey 7S Model

Categories: Financial Theory

The McKinsey 7S Model is kind of like The Art of War for management looking to improve their company performance, making it the most effective it can be at...whatever it is the company does. It can also be used for teams, and any groups of people trying to do...just about anything.

It gets its name from McKinsey & Company consulting. There are seven “elements” to take into account, three hard (strategy, structure, systems) and four soft (shared values, skills, style, staff).

The “hard” elements are easier to see and define. The soft elements are a bit trickier, since they’re harder to measure, like “leadership style.” To make sure the McKinsey 7S Model actually works, it takes leadership, and being honest about the reality of things...instead of what they’d like to do in theory.

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