McKinsey’s 7S Framework for Company's Long Term Objective

Questions related to analysis of a company’s position to achieve its long term goal have always been one of the most discussed topics in management. Different scholars have tried to answer the problem in different ways. Some focus on external factors, others on external factors, while others combine both. One of the most important concepts was developed by Robert Waterman and Tom Peters, both of whom worked with McKinsey & Company consulting firm. The model’s concept states that there are seven aspects of a company which need to be balanced to achieve the long term objective.

The 7 Elements

The 7 elements of the theory are structure, systems, staff, skills, strategy, style and shared values. Structure refers to the arrangement of financial and human resources teams within different teams and groups of business. The systems element is stands for the technical platforms as well as business platforms used to support the key approaches which are used by the company in order to achieve its objectives.

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Skills are the ability of the different activities to excel in their respective functions and activities. Strategy is the description of the different ways for a company to achieve its objectives and goals. Staff stands for the type of employees it has, salaries which they draw and how they (i.e. employees) are retained. Style means work culture of a company, in the area of leadership and communication between staff as well as shareholders. Shared values are reflected in the long term corporate goal of the company and how it explains its reasons for being.

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Strategy, systems and structure are known as hard elements while skills, style, staff as well as shared values are known as soft elements. Each of them helps in development and execution of the business process in a precise manner so as to develop your organizational skills. The HR department’s task is therefore to have a clear understanding of the company, and make proper use of these factors in order to fulfill long term corporate goals.

How to use the framework

The above mentioned framework can be used to detect the gaps which might appear in the business processes, and create misalignments. They help the HR team to identify the exact areas where these problems are arising and can be used to analyze a change in systems and ways in which it impacts the company as a whole. Planning the process of change will help in ensuring that all elements mentioned in the 7 S models are balanced to perfection. As a result, all processes as well as departments can be aligned with each other and help in achievement of that objective. The 7 S models can be used in order to analyze the present situation of the business, the envisioned future goal as well as detects the gaps between them.


Cite this page

McKinsey’s 7S Framework for Company's Long Term Objective. (2016, Mar 13). Retrieved from

McKinsey’s 7S Framework for Company's Long Term Objective

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