Change Models & Frameworks

McKinsey 7-S Framework

The McKinsey 7-S framework is a diagnostic model created by Robert Waterman, Tom Peters and Julien Phillips that describes an organization as seven interdependent elements: strategy, structure, systems, shared values, style, staff and skills. A change to one element affects the others, so the framework is used to check alignment and to scope a change's impact.

Quick facts

Originator: Robert H. Waterman Jr., Thomas J. Peters and Julien R. Phillips (McKinsey & Company)
Year / source: 1980, "Structure is not organization", Business Horizons 23(3)
Type: Diagnostic (network of interdependent elements)
Focus: Organizational alignment
Elements: Hard: Strategy, Structure, Systems · Soft: Shared values, Style, Staff, Skills
Best for: Scoping which parts of an organization a change touches
Exam relevance: APMG CM Foundation, The Work of the Change Manager (WM0201)

Model at a glance

Shared values — at the centre: the core beliefs that connect every other element
Strategy — hard: the plan for competing and allocating resources
Structure — hard: how work, reporting lines and decisions are divided
Systems — hard: the processes, procedures and tools of daily work
Style — soft: how leaders behave and spend their time
Staff — soft: the people, their numbers and how they are developed
Skills — soft: the capabilities the organization is good at

What are the seven elements of the McKinsey 7-S framework?

Element	Hard or soft	What it covers
Strategy	Hard	The plan for competing and allocating resources
Structure	Hard	How work, reporting lines and decision rights are divided
Systems	Hard	Processes, procedures, information flows and tools
Shared values	Soft	The core beliefs and purpose that hold the organization together
Style	Soft	How leaders behave and what they pay attention to
Staff	Soft	The people: numbers, profiles, development and careers
Skills	Soft	The distinctive capabilities of the organization as a whole

Hard elements are easier to define and change by decision: a new structure chart or system can be issued. Soft elements are harder to describe and change slowly, yet they often decide whether the hard changes stick.

The McKinsey 7-S framework therefore asks a change manager to look beyond the hard elements that most plans start with.

Why are shared values at the centre of the 7-S framework?

In the usual diagram, the seven elements are drawn as connected circles, with shared values in the middle and a line from it to each of the other six. The position signals that shared values influence every other element and are influenced by them.

The central element was first called superordinate goals; it was later renamed shared values, the label used in *In Search of Excellence* (1982).

The authors' core argument, summed up in the article's title, is that structure alone is not the organization. A reorganization that ignores shared values, style and skills is likely to leave the old way of working in place.

The McKinsey 7-S framework therefore places shared values at the centre to show that no element can be changed in isolation.

How do you use the 7-S framework in a change impact assessment?

In change impact assessment, the framework works as a checklist of areas to examine for the current and the future state.

At Harbourside Council, planning applications move from paper to an online service. The obvious change is to systems. A 7-S review asks what else moves:

Structure: does a central digital team now own intake that area offices handled?
Staff: do some roles shrink while others grow?
Skills: do officers need to work with online records and respond to queries in writing?
Style: will managers judge performance by cases closed rather than by visible effort?
Shared values: does the council see itself as a service for applicants or as a gatekeeper?
Strategy: is the aim cost reduction, faster decisions or both, and do the other elements support that aim?

Each answer becomes an impact area to assess for each group affected.

Used this way, the McKinsey 7-S framework turns a "system change" into a full picture of what the change touches.

What are the limitations of the McKinsey 7-S framework?

The framework's strength is breadth: in one picture it reminds leaders that strategy, people and culture are linked. Its limits follow from that design.

Diagnostic, not a method. It shows what is out of alignment but not how to fix it or in what order.
Static. It describes the organization at a point in time and does not model how change unfolds.
Inward-looking. The external environment, such as customers, regulation and competitors, is not one of the elements.
Limited evidence. It grew out of McKinsey consulting work; it does not claim tested causal links between elements.
Soft elements are hard to assess. Judgments on style or shared values depend on who is asked.

The McKinsey 7-S framework is therefore best paired with a process model for the "how" and with input from the people who work in each area.

McKinsey 7-S vs. the Burke-Litwin model: what is the difference?

	McKinsey 7-S framework	Burke-Litwin model
Originator	Waterman, Peters & Phillips (1980)	W. Warner Burke & George Litwin (1992)
Elements	Seven interdependent elements	Twelve factors, including the external environment
Logic	Network: every element is linked to every other	Causal: factors are arranged with a direction of influence
Distinction	Hard vs. soft elements	Transformational vs. transactional factors
Main use	Check alignment and scope the impact of a change	Diagnose causes of performance and plan deep change

Use the 7-S framework for a quick, broad alignment check; use Burke-Litwin when the external environment and causal links between factors need analysis.

Exam focus

At Foundation level (WM0201) expect recall of the seven elements and which three are hard (strategy, structure, systems), and comprehension of why shared values sits at the centre and how the framework supports change impact assessment. A common trap lists staff or skills as hard elements; another treats the seven S's as a sequence of steps.

Practise this syllabus area →

FAQ

What are the 7 S's in the McKinsey model?

The seven S's are strategy, structure, systems, shared values, style, staff and skills. Strategy, structure and systems are called hard elements; the other four are soft elements. Shared values sits at the centre because it connects to all the others.

Who created the McKinsey 7-S framework?

Robert Waterman, Tom Peters and Julien Phillips, then McKinsey consultants, published it in 1980 in the article "Structure is not organization" in Business Horizons. It became widely known through In Search of Excellence by Peters and Waterman (1982).

Is the 7-S framework a change model?

Not in the sense of a step-by-step method. It is a diagnostic framework that shows how parts of an organization depend on each other. In change management it is used to scope impacts and check alignment, alongside a process model that plans the change.

What is the difference between hard and soft elements in 7-S?

Hard elements, strategy, structure and systems, are easier to define, document and change by decision. Soft elements, shared values, style, staff and skills, are less tangible and change more slowly, but they often decide whether a change in the hard elements lasts.

Can the 7-S framework be used for a small change?

Yes. A short 7-S review helps even a contained change, such as a new tool in one team, by checking whether skills, roles and management habits must also shift. The depth of the review should match the size of the change.

Sources

Last reviewed: 2026-11-14

Change Impact Assessment Burke–Litwin Model Organizational Culture in Change Systems Thinking in Change Change Levers

Go deeper

Change management models: an overview

Practise with the APMG-style exam sets