1. ORGANIZATIONAL ALIGNMENT: THE 7-S MODEL

2. INTRODUCTION
 Tool for analysis and action.
 Developed McKinsey&Co. consultants , Harvard
Business School and Stanford Business School
professors.
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3. 7-S FRAMEWORK
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4. 1. STRATEGY
 Ways to achieve competitive advantage.
 Examples.
 Low-cost strategy through economic production or
delivery
 Product differentiation through distinct features or
innovative sales.
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5. 2. STRUCTURE
 Ways in which task and people are specialized and
divided, and authority is distributed.
 Four main structures
 Functional Structure
 Divisional Structure
 Matrix Structure
 Network Structure
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6.  Functional Structure
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7.  Divisional Structure
GM
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8.  Matrix Structure
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9.  Network Structure
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10. 3. SYSTEMS
 Formal processes and procedures to manage the
organization.
 Examples:
 Performance Measurements
 Reward Systems
 Planning
 Budgeting
 Resource Allocation
 Information System
 Distribution System
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11. 4. STAFFING
 People, their background and competencies.
 Organization’s approach to
recruitment, selection, socialization, training and
employee development.
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12. 5. SKILLS
 Distinctive competencies in the organization.
 Can be of People, Management Practices, Systems
and/or Technologies.
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13. 6. STYLE
 Leadership style of top management and overall
operating style of organization.
 Impacts norms followed by people, how they work
and interact with each other and customers.
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14. 7. SHARED VALUES
 Core values shared in the organization and serve
as guiding principles of what is important.
 Helps focus attention and provides a broader sense
of purpose.
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15. USING THE 7-S MODEL
 Each S is consistent with and reinforces the other
S’s.
 Recognize the full range of elements that need to
be changed and focus on the ones that will have
the greatest effects.
 All seven variables are interconnected- to make
progress in one, adjustments need to be made in
others also.
 No natural starting point for a change – it is decided
by diagnosis of the alignment of the organization.
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16. USING THE 7-S MODEL
 Hard S’s (Easier to change)
 Strategy
 Structure &
 Systems
 Softer S’s (Harder to change directly and take
longer)
 Staffing
 Skills
 Style &
 Shared Values
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