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McKinsey's 7S framework of business

This is the McKinsey '7S framework' of business that have been used at the McKinsey consulting company:

  • 'Hard' variables:
    • Strategy: plan leading to allocation of resources.
    • Structure: organization reporting lines, geography, etc.
    • Systems: formal and informal processes used.
  • 'Soft' variables:
    • Staff: demographics of personnel.
    • Style: behavior of managers when interacting with others.
    • Skills: core competencies of the firm.
    • Shared value: culture, which is actually the core element to it all.

An eighth S is 'Superordinate goals', which is the big stuff that drives the company forward.

It was first made public in Athos and Pascale's 'The Art of Japanese Management' and made even more famous in Peters and Waterman's 80s classic 'In Search of Excellence'.

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