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Chapter 12. McKinsey 7S Analysis > Strengths and Advantages

Strengths and Advantages

The 7S model pays particular emphasis to a firm’s strategy implementation. This key facet of the traditional strategic management model was often given short shrift or even ignored in many preceding management constructs. The McKinsey 7S model filled this analytical vacuum by suggesting that strategic success in the competitive marketplace is also dependent on organizational effectiveness. This counteracted the disproportionate emphasis of previous models on external, economic, and marketplace factors. The McKinsey 7S model laid the groundwork for the increasing prominence of organizational dynamics in future models, such as core competency and resource-based theories.

Further, the 7S model developed the concept that organizational effectiveness was not dependent on just strategy and structure—a radical and much-needed departure from the confines of the decades-old (although admittedly still vibrant) “structure follows strategy” paradigm. The inclusion of the other elements of strategic fit broaden the analyst’s scope to consider the possibility that for select firms, the reality of their context will be that strategy follows structure. At any rate, the analyst will soon realize that organizational change requires strategic management of all seven elements of strategic fit, not just tinkering with one or two of the elements (traditionally only strategy and structure).


  

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