Strategic Management: Formulation and Implementation

The 7-s's Framework

McKinsey and Company have developed a model know as, "the seven elements of strategic fit," or the "7-S's."

7-S's include:

  1. strategy (the coherent set of actions selected as a course of action);
  2. structure (the division of tasks as shown on the organization chart);
  3. systems (the processes and flows that show how an organization gets things done);
  4. style (how management behaves);
  5. staff (the people in the organization);
  6. shared-values (values shared by all in the organization); and
  7. skills (capabilities possessed by the organization).

The underlying concept of the model is that all seven of these variables must "fit" with one another in order for strategy to be successfully implemented.

However, shared values are the central core of the framework because they are the heart-and soul themes around which an organization rallies.