McKinsey 7S Model

AAA

DEFINITION of 'McKinsey 7S Model'

A model of organizational effectiveness that postulates that there are seven internal factors of an organization that need to be aligned and reinforced in order for it to be successful. The 7S Model was developed at McKinsey & Co. consulting firm in the early 1980s by consultants Tom Peters and Robert Waterman, authors of the management bestseller "In Search of Excellence."

INVESTOPEDIA EXPLAINS 'McKinsey 7S Model'

The 7S Model specifies seven factors that are classified into "hard" and "soft" elements. Hard elements are easily identified and influenced by management, while soft elements are fuzzier, more intangible and are influenced by the corporate culture. The hard elements are: strategy, structure and systems. The soft elements are: shared values, skills, style and staff.

RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Economic Value Added - EVA

    A measure of a company's financial performance based on the residual ...
  3. Intrinsic Value

    1. The actual value of a company or an asset based on an underlying ...
  4. Market Value Added - MVA

    A calculation that shows the difference between the market value ...
  5. Q Ratio (Tobin's Q Ratio)

    A ratio devised by James Tobin of Yale University, Nobel laureate ...
  6. Franchise disclosure document

    A Franchise Disclosure Document (FDD) is a legal document presented ...
Related Articles
  1. The Financial Characteristics Of A Successful ...
    Fundamental Analysis

    The Financial Characteristics Of A Successful ...

  2. The 10 Greatest Entrepreneurs
    Entrepreneurship

    The 10 Greatest Entrepreneurs

  3. Why Successful Business Owners Sell ...
    Entrepreneurship

    Why Successful Business Owners Sell ...

  4. 9 Tips For Growing A Successful Business
    Entrepreneurship

    9 Tips For Growing A Successful Business

comments powered by Disqus
Hot Definitions
  1. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
Trading Center