Knowledge Resource Centre

The 7-S Model for Organisational Change

R.H. Waterman, T.J. Peters, and J.R. Phillips, "Structure is not organisation", McKinsey Quarterly in-house journal, McKinsey & Co., New York, 1980. This diagram has been recreated by LMC.

LMC explains The 7-S Model for Organisational Change

This is a management tool designed to analyse and understand the key organisational structures within a company in order to assess its potential for effective change. The model examines seven key areas of the company and the relationships of each of these elements to each other. The elements are grouped into two sub-categories of 'hard elements' and 'soft elements':

The hard elements represent un-shifting company traits, those which are relatively stable and simple to define such as company strategy, structure and systems.The soft elements, on the other hand, represent more complex traits of the company which are influenced by culture, environment and individuals. These could be shared values, skills, style and staff.

The seven elements

A simplified description for each of the elements can be given as:

• Strategy: The company plan or route-map to maintain competitive advantage
• Structure: The company hierarchy
• Systems: The day-to-day processes and procedures throughout the company
• Shared Values: The core values of the company
• Style: The company leadership style
• Staff: The company's employees and their broad abilities
• Skills: The skills and competencies of employees

By analysing each of the elements, inconsistencies are revealed which can then be aligned with the other elements before change is effectively implemented.

The central theme of the model is that the seven elements are interconnected and interdependent upon one another. In order to achieve business success, each of the seven elements must be aligned and mutually reinforcing each other. Effecting change using this model involves the assessment of all areas, simultaneously taking into account their nature and effect on each other.

By asking questions to check the congruence of the key elements of a business, the 7-S model can help companies to analyse and improve existing processes, examine potential effects of a future venture, identify gaps and align departments, or determine how best to implement a strategy. The model can be used in any company or team effectiveness issue where highlighting inconsistencies of approach may be beneficial.