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Knowing where you are going as an organization means understanding where you are today. How businesses and corporations analyze their standing means looking at external and internal factors combined with the environment of your industry. However, the knowledge of which factors to weigh in your evaluation can be tricky unless you use a proven model that has provided substantial success for businesses.

The McKinsey 7S Framework is one such model that has enjoyed considerable success over the past 35 years thanks to its focus on the seven internal elements of every organization.

History

The McKinsey 7S Framework was created back in the early part of the 1980s by Tom Peters and Robert Waterman who worked for the McKinsey & Company consulting firm. They developed this framework based on their observations and experiences that indicated all organizations operated on seven internal factors that had to be working together for the business to be at peak efficiency.

The seven aspects are divided into two different systems. The hard elements of the framework consist of Strategy, Structure, and Systems while the soft elements are Shared Values, Skills, Style, and Staff. The hard elements can be directly influenced by the actions of management while the soft elements are not so easily definable. However, elements are part of every business and must fit together well if the business is going to run properly.

How McKinsey 7S Framework Works for Your Business

Through its guidance, you can see how to properly align your business efforts so that everyone is working at peak efficiency. The overall benefits of having the framework in place means that your company that achieve the following;

  • Improve Overall Performance
  • See Potential Future Changes and their Results
  • Discover the Best Way to Employ New Strategies
  • Properly Align Departments during Acquisitions and Mergers

The fundamental benefit of having the 7S Framework is that it eliminates inefficiency so that you give the efforts of your business the best chance at success. By not having the seven essential elements aligned, your company may lose its competitive edge because it lacks full efficiency in all areas of its function.

The benefits start with the ability to properly identify the seven basic functions of your business, to evaluate their performance, and to make improvements where they are needed. But more than that, it is how the seven elements relate to each other and how they perform together that offers a path towards greater efficiency, productivity, and higher morale.

The system can be used by all types of businesses that have the elements in place. It also provides a better understanding of how to make decisions over the areas you directly control and how to compensate for the areas in which you have less influence.

If you are looking to improve how your business operates, the McKinsey 7S Framework is what you need. It provides the blueprint so you can better understand were your business is operating today so you can make better plans for future expansion.

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