Strategic Framework
McKinsey 7S Framework
Align key organizational elements to improve performance, manage change effectively, and successfully implement new strategies.
The Seven Interdependent Elements
The McKinsey 7S Framework is a management model developed by business consultants Robert H. Waterman, Jr. and Tom Peters in the 1980s. It posits that for an organization to perform well, seven elements need to align and mutually reinforce each other. These elements are categorized as "hard" (easier to define and manage) and "soft" (more difficult to define, less tangible, and more influenced by culture).
Strategy (Hard Element)
The plan devised to maintain and build competitive advantage over the competition.
Structure (Hard Element)
The way the organization is structured and who reports to whom (organizational chart).
Systems (Hard Element)
The daily activities and procedures that staff members engage in to get the job done.
Shared Values (Soft Element)
Called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic.
Style (Soft Element)
The style of leadership adopted.
Staff (Soft Element)
The employees and their general capabilities.
Skills (Soft Element)
The actual skills and competencies of the employees working for the company.
The central idea is that all seven elements are interconnected, and a change in one often impacts others. Effective organizations achieve a harmonious balance among these elements.
Aligning for Commercialization with Commercify & 7S
While Commercify primarily focuses on the 'Strategy' element (developing GTM strategies), its outputs and the process of commercialization deeply interact with all seven elements of the McKinsey 7S framework, especially when launching new products or entering new markets:
- Strategy: Commercify directly helps formulate the commercialization strategy (market entry, pricing, positioning).
- Structure: A new GTM strategy might necessitate changes in organizational structure (e.g., new sales teams, R&D-marketing liaison roles). Commercify's insights can highlight structural needs.
- Systems: Implementing a Commercify-devised strategy requires supporting systems (CRM, market data analysis processes, product development pipelines).
- Shared Values: A successful commercialization effort, especially for innovative products, must align with the company's core mission and values (e.g., innovation, customer-centricity).
- Style: Leadership style plays a crucial role in driving the adoption of new strategies and fostering an environment conducive to commercialization success.
- Staff: The GTM plan will highlight needs for specific roles and capabilities (e.g., market analysts, product managers, specialized sales staff).
- Skills: Commercify helps identify market opportunities that may require new skills within the organization (e.g., digital marketing, AI expertise, international business).
Using the 7S framework alongside Commercify's strategic outputs can help ensure that the organization as a whole is prepared to execute the commercialization plan effectively.
Benefits of Using the 7S Framework
- Improve Organizational Effectiveness: Ensure all parts of the organization work in harmony.
- Facilitate Change Management: Understand the ripple effects of changes in one area.
- Align Strategy with Operations: Ensure that daily activities support strategic goals.
- Diagnose Problems: Identify misalignments that hinder performance.
- Guide Mergers & Acquisitions: Assess the compatibility of different organizational elements.
- Support Strategy Implementation: Ensure the organization is capable of executing the chosen strategy.
Ready to Align Your Organization for Success?
While Commercify crafts your GTM strategy, use the 7S framework to ensure your organization can deliver it.