Analysis Of The Importance Of Seven Elements Business Essay

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In 1981, the applied research was conducted by Pascale & Athos and 1982 by Peters & Waterman. Four of them worked in McKinsey as a consultant so this model was named as McKinsey 7S Model. They did this applied research all over world from around 70 companies. They got different answers from different companies so it helped them to analyse everything in a proper manner. It is easily understandable so most of the organisations celebrate this model as an important one.

Top executives from several reputed organisations celebrate this model as a profit oriented model. It helps them to identify most of the crucial information like where the organisations stand now and where will it stand in future and what the crucial things the company has to do at this occasion. It shows all kind of information to the organisations. The model we can say absolutely simple so it gives some amount structure for the organisations even though the organisation is small. It has included practical guidance and advices for the organisations as well as for the students to analyse organisations by using this great model. In this model, there are seven variables, the authors term is "levers", all seven of them begins with the first letter "S":

The important seven elements

In this model, there are seven variables which include structure, strategy, systems, skills, style, staff and shared values. Every variable is explained in a precise manner in the model. The ultimate special about this model is to guide the companies to understand their present and future situations in the market place so it helps them they have to rectify their mistakes from their good amount of work and many other things about their organisations. First of all we will understand each variable in a proper manner.

In this model the Structure can be defined as the bones of the organisations or the organisational charts in the market. The four authors has described strategy is the plan or course of action to allocate resource to achieve defined goals over a particular period of time. The systems can be defined as a routine process and procedures which of them are followed inside the organisations.

Staff can be defined as personnel categories that help inside the organisation. The skills can be referred as the main capabilities of the staff inside the organisations. The Style can be defined as the way the key managers behave in achieving their organisational goals. It could be clearly explained by the people in the organisation because it plays a crucial role in the organisation by means of the competitive market. The style gives a good amount of reputation for the most of the organisations so it has to be clearly conveyed to the people. It is one of the important things in the organisations because of the cultural style of the organisation.

The shared values variable can be defined as what is really important to the company and how it can get it. It is also called as superordinate goals. It gives many significant meanings or guiding concepts for the organisations. From the analysis of the organisations by means of this model it gives more amounts of practical things for the organisations. In analysis we can know some of the organisations are using only the hard elements. It is like structure, strategy and systems. The organisations mostly concentrate only the hard elements. They feel the organisations get more benefits by means of using the structures. It gives s lots of advantages for the organisations.

But some of the organisations are mainly concentrating the soft elements. They feel that the soft elements give good amounts benefits for the organisations. They change the company by neglecting the other variables like skills, style, staff and shared values. Japanese and some of the reputed American companies are linking their structure, strategy and systems with the soft elements. It has given great opportunities for the organisations to get more reputation as well as good amount benefits. The authors have been concluding that change in one or two variables will not help the entire organisation. All seven variables have to be changed.


Strategy is the plan of an action. An organisation will have some amount of Strategies to compete with the external environment. Every organisation will have some kind of differentiation to show it differently to the market in the world. There are three questions can be asked in this strategy.

where the organisation is at present,

where the organisation wants to be after a certain period

How to reach there.


In Business every need will be organised in a clear shape which is very important for the organisations. It may be called organisational structure. Every organisation is structured based on its business needs. It may be categorised in two important ways.

Hierarchic structure

Flat structure

Traditionally, most of the organisations followed the hierarchic structure. In this structure each department will have different kinds of deeds and responsibilities. The department will have more divisions and it will have particular works. Now a days most of the organisations follow different kinds structure like flat structure. In this structure the work will be done in a team of specialists. It will not be done by particular departments.


All the organisations will have some kind of systems or process to run day to day activities. It will have all the information in a particular manner. Most of the organisations followed bureaucratic-style process model. Every activity in the organisation will have been clearly figured by the top management.

Now a days several organisations are following different systems. The significant thing about is every organisation follow the systems by means of new technologies. The significant systems are formulated because of modern technologies. Modern technologies are reason for good systems which are followed by the organisation now. Innovation takes a crucial role for it. Because of the new technologies the work is faster as well as simple.


Every organisation follows different kind of culture or style in the business environment. The style of the organisations will have defined as the dominant values, beliefs and norms which will be as dominant features of the organisation. Traditionally, if we look at the organisations most of them followed the military style of management. The organisations followed the rules and regulations very strictly.

But now a days most of the organisations follow a more open, innovative and friendly environment which help the employees to do things very innovatively. The friendly environment helps the persons to do their responsibilities in an extraordinary manner. The special things about it they have been valued by the organisations in an appropriate manner. The modern culture has a smaller chain of command. It helps the employees that who reports to whom.


Every organisation will have made of people. They help the organisation in a very crucial manner so that the organisation can get more benefits by means of their people. They try to give their knowledge and their ideas to improve the organisation effectiveness. Now a days most of the big organisations like IBM, Microsoft, Cisco etc, give the employees good amount of training and mentoring support so that they can be an expert in the field that they have chosen at present. It helps the organisations to grow more and more in the field of business in a competitive environment. Every organisation should guide the employees that they have a bright future in the following years. It will motivate them more to do their work in a perfect manner.

Shared Values/Superordinate Goals:

All the organisations should tell the employees what is most important for the organisation. Every person will have some kind of fundamental ideas about most of the things. It should be clearly explained to the people so that they could do their work in a perfect manner. It is important that the organisations should keep the team spirit alive.

How can use this model?

If you want to use this model, you should analyse whether all seven elements are inter related or not. That is very important to this model. It will help you if you mainly are concentrating on restructuring, new processes, organizational merger, new systems, change of leadership and many other things. It helps us to understand the present as well as future situation.

It helps the organisation to recognize the gaps and inconsistencies between present as well as future. This is one of the significant models because most of the organisations are using this model. If anyone wants to use this model, he should have some kind of experience about this model. It will help him to understand completely.


To identify and improve the performance of the organisations.

To examine the future varies inside a company.

To align the departments and processes in the organisation

To implement a good strategy


This model is one of the significant models. It tells everything in a precise manner like where the changes take place , what is the main cause for that change, how can we change for the good of the organisation. It shows everything in a cristal clear manner. If any organisation wants to change, first of all it has to use this 7s model. It will guide the organisation to the path of success.