What are the steps to align your organization using McKinsey 7S?

Consider Tesla, which has effectively used a similar alignment strategy. Their strategy is electric vehicle and sustainable energy innovation. The structure is lean and agile, focusing on quick innovation. The systems include their unique direct-to-customer sales model. Shared values consist of sustainability and innovation. Skills include engineering and software expertise. The style, led by Elon Musk, is aggressive and visionary. The staff are specialized in fields like battery technology, AI, and manufacturing. While the McKinsey 7S model is comprehensive, it doesn't directly address factors like external market conditions or government regulations.

The McKinsey 7-S framework helps you increase the efficiency of your organization, and how your PMO supports it. By determining what your business does well in these seven elements, you can change your business practices to address commonly overlooked aspects of your organization.

Google use employee surveys, like Googlegeist, which garners responses from more than 90% of their employees annually. The survey measures various elements that can be mapped to the 7S model. For instance, Google’s strategy of focusing on innovation is well-aligned with their structure, which is designed for quick decision-making. The company’s shared values of openness and innovation resonate through their hiring process, influencing the skills and characteristics of the staff they onboard. If the 7S elements are not aligned, the company is likely to face inefficiencies. If Google continuously assesses their organizational state, then periodic assessment could be a general pattern for maintaining a high-performing company.

Apple set ambitious goals, like becoming carbon neutral by 2030. This vision influences their strategy (sustainability), structure (organizational realignment to focus on green initiatives), and staff (hiring experts in sustainability). Apple conducts regular internal audits and uses tools like SWOT analysis to evaluate progress. According to their 2021 Environmental Progress Report, they reduced their comprehensive carbon footprint by 22% from 2015 levels, indicating alignment and progress toward their vision. Using deductive reasoning, if a company like Apple can effectively use tools like SWOT analysis to align their 7S framework, then these tools are valuable for setting and monitoring the desired state.

Microsoft's transformation under Satya Nadella serves as a good example. Nadella implemented a cultural shift towards "growth mindset" and made strategic moves into cloud computing. He used roadmaps and set clear timelines and responsibilities. According to their 2023 Annual Report, Microsoft's revenue from its Intelligent Cloud segment increased by 24%, reaching $90.8 billion. This indicates successful planning and implementation. If a well-planned and communicated change strategy can turn around Microsoft, it's logical to conclude that other organizations can similarly benefit from meticulous planning.

Amazon serves as a great example of continually reviewing and sustaining alignment. The company is famous for its customer-centric approach, which is deeply embedded in its culture and policies. Amazon uses real-time dashboards to monitor performance metrics and has regular 'all-hands' meetings to discuss alignment and performance. If a company like Amazon can achieve remarkable growth through continual review and realignment, then it stands to reason that this approach is effective.

Coca-Cola has always adjusted its strategy according to McKinsey 7S Framework results. Concepts, values, and skills are created in the corporate culture of Coca-Cola. Strategic Management of Coca-Cola has followed an effective mechanism such as Mckinsey’s 7 Framework. That’s why Coca- Cola is still identified as one of the best brands in the world.