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21926 Chap.9 McKinsey's 7S Framework and Gap Analysis

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McKinsey's 7S Framework and Gap Analysis

Seven elements that must fit

The 7S framework, developed by the consultants Waterman and Peters in the 1980s, holds that strategy, structure, systems, skills, staff, style and shared values must be aligned for an organisation to be effective, and that all seven are interconnected, so a change in one demands change in the rest.

Strategy, structure and systems are the hard elements; the others are soft, with shared values at the centre.

Using it for gap analysis

The lecture gives three steps: find where in the seven the change is mainly embedded, trace how it affects the others, then work out how to realign all seven.

The subject’s template turns this into a gap analysis: describe each element as it is now and as it should be, compare the two columns and write an action plan to close the gaps.

Its prompts for each element stop the columns becoming vague labels.

Open questions

The framework offers a systems view and supports planning, benchmarking and gap analysis, but the lecture asks which element comes first, notes the absence of implementation guidance and empirical evidence, and asks what alignment actually means. A strong critique answers one of these for a specific case.

In this chapter

What this chapter covers

  • 01

    Strategy, structure and systems

  • 02

    Skills, staff, style and shared values

  • 03

    Interdependence of the seven elements

  • 04

    Current state versus desired state

  • 05

    Writing the gap action plan

  • 06

    Questions the framework leaves open

Worked example · free

Trace one change around the 7S web

Q [4 marks]. AskSia-authored practice. A veterinary hospital network replaces phone bookings with an online booking system across all clinics. Using the 7S web, identify where the change is mainly embedded, trace its effect on the hard and soft elements, and state one alignment action. Marks shown follow an AskSia practice weighting, which is not an official University scheme.
The 7S web.The 7S web. Shared values sit at the centre and the six other elements surround them, with a line joining every element directly to every other one; the blue circles are the hard elements and the others, centre included, the soft elements, and a change in any circle pulls on all the others.SharedvaluesStrategyStructureSystemsStyleStaffSkills
The 7S web. Shared values sit at the centre and the six other elements surround them, with a line joining every element directly to every other one; the blue circles are the hard elements and the others, centre included, the soft elements, and a change in any circle pulls on all the others.
  • 1Locate the change: it is embedded in systems, because the procedure for making appointments changes.
  • 1Trace the hard elements: structure may need a central booking coordinator instead of each clinic’s front desk, and even the strategy of convenient care is pulled, since it now depends on the booking site working, so service targets are restated.
  • 1Trace the soft elements: reception staff need new skills to manage online queues, the staff mix shifts from phone work to client care, and a shared value of personal service must be kept alive in the new channel.
  • 1Align: train reception teams before launch, name the coordinator’s authority, and keep a phone line for clients who cannot book online so the shared value is not lost.
The change sits in systems but pulls on structure, skills, staff and shared values; strategy keeps its aim but its targets are restated, because in the 7S view no element is left untouched. Alignment actions are training, a clear coordinator role and a fallback phone line.
Sia tip — Name the element where the change starts, then go round the web asking of each other element: what must change here for the first change to work?
Glossary

Key terms

Hard Elements
Strategy, structure and systems, the three 7S elements the slides group as hard, of which structure is singled out as highly visible and easy to alter.
Soft Elements
Skills, staff, style and shared values, the 7S elements rooted in people and culture that are harder to see and to change.
Shared Values
Beliefs embedded in an organisation’s culture that guide valued behaviour and sit at the centre of the 7S framework.
Gap Analysis
Comparing an organisation as it is now with how it should be, element by element, so the differences become an action plan.
Strategic Alignment
A state in which all seven elements support one another and the planned change, which the framework says effectiveness depends on.
FAQ

McKinsey's 7S Framework and Gap Analysis FAQ

What are the seven S's in McKinsey's framework?

Strategy, structure and systems, which the slides call the hard elements, and skills, staff, style and shared values, the soft elements. Shared values sit at the centre because they are the beliefs that guide behaviour. The framework’s key claim is that all seven are interconnected and must be aligned.

How do I do a 7S gap analysis?

Describe each element as it is now and as it should be once the change is in place, using the template’s prompts for each element. Comparing the two columns reveals the gaps, and those gaps become the action plan. Start by identifying where the change is mainly embedded, then trace its effects.

Why does a change in one S affect the others?

Because the framework treats the seven elements as interdependent. New systems, for instance, can demand new skills, a different staff mix and a different leadership style. If only the element where the change starts is updated, the others pull the organisation back towards its old way of working.

What are the criticisms of the 7S framework?

The lecture asks which element should come first, notes that the framework gives no guidelines on implementation and lacks empirical evidence of working across different organisations, and questions what alignment means. It also asks whether, if everything is connected, a change can really be embedded in only one element.

What is the difference between hard and soft elements?

Hard elements are strategy, structure and systems; the lecture singles out structure as highly visible and easy to alter, while systems include informal as well as formal procedures. Soft elements are skills, staff, style and shared values, which depend on people and culture. Practitioner evidence cited in the subject suggests the soft side is where change most often stalls.

Study strategy

Assessment move

Learn the seven elements with one sentence each, then practise the three questions from the lecture on short cases: where is this change embedded, what does it pull on, and how would you realign? Use the subject’s two-column template for at least one practice case, filling in the current and desired state for every element, including the soft ones, and writing a short action plan in a sensible order.

For critique, choose one open question, such as what alignment means or which element comes first, and practise answering it for a specific situation in a paragraph. That keeps your evaluation tied to a context instead of becoming a list. If you choose the framework for an assessment, check the current menu on Canvas first.

Working through McKinsey's 7S Framework and Gap Analysis in 21926? Sia is AskSia’s AI Management tutor — ask any 21926 McKinsey's 7S Framework and Gap Analysis question and get a clear, step-by-step explanation grounded in how 21926 is taught and assessed. Read this chapter free, then take your hardest questions to Sia.

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