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Mckinsey’s 7 factors

Applying the model

Infographic

A gap analysis is a comparison of two views of a business system – the view of the current situation and the view of the desired future situation.

Gap analysis is just one of the many business analysis models and techniques covered in-depth in our BCS Business Analysis online courses.

Mckinsey’s 7s model is a framework that analyses a business’s organizational design by looking at 7 internal factors. It helps to:

  • Understand the gaps in a business.
  • Identify areas to optimise & boost business performance.
  • Align processes and departments during a merger or acquisition.
  • Examine the results of future changes within the business.

Mckinsey’s 7 factors

  1. Structure

    How are decisions made? Are they based on centralization, empowerment, decentralization or other methods?

  2. Systems

    What internal procedures and processes does the team utilize to maintain progress against the plan?

  3. Strategy

    How does the organization use resources and capabilities to deliver its plan? Is there a strong vision, mission and values in place?

  4. Skills

    What skills are used to deliver core products or services? Are they present and available? Are there any gaps?

  5. Staff

    What are the staffing needs? How does the organization manage talent?

  6. Style

    What behaviours, tasks, deliverables and outcomes does management and/or leadership reward?

  7. Shared values

    What are the ideal vs. Real values? What are the founding values that the organization was built upon?

Applying the Mckinsey 7s model

Identify problems within the company

Look for the gaps, inconsistencies and weaknesses in the organization and map them to the 7s internal factors.

Determine the desired outcomes

By knowing the desired situation, you can set your objectives. Brainstorming is useful to visualize your deck.

Decide how to best move from the current, to the desired situation

Action plans detail the area for improvement, and how to achieve this.

Implementation

Assign team members to help carry out the action plan. Follow up to ensure the desired situation has been achieved.

Review the 7s on a continuous basis

The factors are dynamic and change constantly. Therefore, a periodic review of ach factor is important.

Mckinsey 7s model infographic

The following infographic describes how to use the Mckinsey’s 7s model in greater detail.

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