Flevy Management Insights Q&A
How can the McKinsey 7-S Framework be adapted to support organizations in navigating the challenges and opportunities of remote work?
     Joseph Robinson    |    McKinsey 7-S


This article provides a detailed response to: How can the McKinsey 7-S Framework be adapted to support organizations in navigating the challenges and opportunities of remote work? For a comprehensive understanding of McKinsey 7-S, we also include relevant case studies for further reading and links to McKinsey 7-S best practice resources.

TLDR Adapting the McKinsey 7-S Framework for remote work involves reevaluating Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff to align with digital transformation and distributed team dynamics, ensuring organizational cohesion and agility.

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Before we begin, let's review some important management concepts, as they related to this question.

What does Strategy Adaptation mean?
What does Structural Adjustments mean?
What does Revamping Systems mean?
What does Cultivating Shared Values mean?


The McKinsey 7-S Framework, developed in the 1980s by Tom Peters and Robert Waterman, former consultants at McKinsey & Company, has been a staple in guiding organizations through complex changes. This framework consists of seven interdependent factors: Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff, which are categorized into 'hard' elements (Strategy, Structure, Systems) and 'soft' elements (Shared Values, Skills, Style, Staff). In the context of remote work, adapting the 7-S Framework can provide organizations with a comprehensive approach to navigate the challenges and leverage the opportunities presented by this mode of operation.

Strategy Adaptation for Remote Work

Remote work necessitates a reevaluation of organizational Strategy to ensure that it aligns with the new mode of operation. This involves reassessing market opportunities, competitive advantages, and customer needs in the context of a distributed workforce. For instance, an organization might shift its focus towards digital products or services that can be delivered remotely. A report by McKinsey & Company highlights the importance of digital transformation in response to the COVID-19 pandemic, indicating that companies accelerating their digital strategies are emerging stronger. To adapt Strategy for remote work, organizations should:

  • Conduct a thorough market analysis to identify new opportunities and threats posed by the shift to remote work.
  • Revisit the organization's value proposition to ensure it remains relevant in a digital-first world.
  • Develop a clear roadmap for digital transformation, emphasizing remote delivery of products and services.

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Structural Adjustments for Distributed Teams

The Structure of an organization, which encompasses how tasks and responsibilities are allocated, must evolve to support remote work effectively. Traditional hierarchical structures may hinder communication and agility in a remote setting. Instead, a more flexible, networked approach can facilitate quicker decision-making and information flow. Deloitte's insights on organizational design for the digital age suggest that companies adopting networked structures are better positioned to respond to changes rapidly. To adapt Structure for remote work, organizations should:

  • Implement a flatter organizational hierarchy to enhance communication and collaboration across distributed teams.
  • Adopt project-based teams and cross-functional collaboration to increase agility and innovation.
  • Utilize digital tools to support virtual collaboration and maintain organizational cohesion.

Revamping Systems for Remote Efficiency

Systems, the processes and procedures that underpin daily operations, must be overhauled to cater to the nuances of remote work. This includes IT infrastructure, communication protocols, and performance management systems. A study by Gartner emphasizes the critical role of technology in enabling remote work, noting that over 80% of company leaders plan to allow employees to work remotely at least part of the time post-pandemic. To adapt Systems for remote work, organizations should:

  • Invest in secure, scalable technology platforms that facilitate seamless communication and collaboration.
  • Develop clear guidelines and protocols for remote work, including cybersecurity policies and data protection measures.
  • Adopt performance management systems that focus on outcomes rather than processes, encouraging autonomy and accountability.

Cultivating Shared Values in a Remote Environment

Shared Values, the core beliefs and principles that guide an organization's behavior, become even more critical in a remote setting. These values help maintain a sense of unity and purpose among dispersed teams. Accenture's research on culture change underscores the importance of aligning organizational culture with new ways of working to drive successful transformation. To cultivate Shared Values in a remote environment, organizations should:

  • Clearly articulate and communicate the organization's core values and expected behaviors in the context of remote work.
  • Lead by example, with senior leaders demonstrating commitment to these values in their daily actions and decision-making.
  • Encourage open dialogue and feedback to ensure that values are lived and breathed across all levels of the organization.

Enhancing Skills for Remote Work

The shift to remote work necessitates a reassessment of the Skills required for employees to be effective in a digital-first environment. This includes digital literacy, self-management, and virtual collaboration skills. According to PwC's Talent Trends report, upskilling employees is a top priority for CEOs globally, with a focus on digital skills to drive growth. To enhance Skills for remote work, organizations should:

  • Identify skill gaps related to remote work and digital competencies.
  • Implement comprehensive training programs focused on digital tools, virtual collaboration, and self-management techniques.
  • Encourage continuous learning and development to keep pace with technological advancements and changing work practices.

Adapting Leadership Style for Virtual Teams

Style, or the way leadership is exercised within the organization, must evolve to support and empower remote teams effectively. This involves a shift towards more empathetic, supportive leadership practices that prioritize communication, trust, and employee well-being. Bain & Company's research on leadership highlights the need for leaders to adapt their styles to manage remote teams successfully. To adapt Leadership Style for virtual teams, organizations should:

  • Embrace a more participative and empowering leadership style, encouraging team input and collaboration.
  • Prioritize regular, transparent communication to keep teams informed and engaged.
  • Focus on building trust and fostering a culture of accountability and autonomy.

Staffing Considerations for Remote Work

Finally, Staff, or the workforce composition, must be reconsidered in the context of remote work. This includes flexible staffing models, such as freelancers and remote contractors, to provide agility and access to a broader talent pool. A report by McKinsey & Company on the future of work post-COVID-19 suggests that remote work can expand access to talent while reducing costs. To adapt Staffing considerations for remote work, organizations should:

  • Explore flexible staffing models to leverage global talent pools and increase organizational agility.
  • Implement robust onboarding and integration processes for remote employees to ensure they feel connected and valued.
  • Reevaluate job roles and descriptions to reflect the skills and competencies required for effective remote work.

Adapting the McKinsey 7-S Framework for remote work enables organizations to take a holistic approach to change, ensuring that all aspects of the organization are aligned and optimized for this new way of working. By carefully considering each of the seven elements in the context of remote work, organizations can navigate the challenges and seize the opportunities presented by a distributed workforce, ultimately driving performance and competitive advantage in a digital-first world.

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McKinsey 7-S Case Studies

For a practical understanding of McKinsey 7-S, take a look at these case studies.

Telecom Infrastructure Modernization in North America

Scenario: The organization is a mid-sized telecommunications provider in North America facing challenges aligning its strategy, structure, systems, shared values, skills, style, and staff—collectively known as the McKinsey 7-S framework.

Read Full Case Study

Strategic Alignment Initiative for D2C E-Commerce in Health Sector

Scenario: The company, a direct-to-consumer (D2C) e-commerce platform in the health sector, faces misalignment within its McKinsey 7-S framework components.

Read Full Case Study

Strategic Revitalization of Industrial Agriculture Firm

Scenario: The organization is a mid-sized industrial agriculture firm in the Midwest, grappling with misaligned structures and strategies following a period of rapid expansion.

Read Full Case Study

7-S Framework Implementation for a Global Retail Firm

Scenario: A multinational retail organization identifies challenges within its business systems related to the alignment and effectiveness of the McKinsey 7-S Framework - strategy, structure, systems, shared values, skills, style, and staff.

Read Full Case Study

Strategic Revitalization in the Forestry & Paper Products Sector

Scenario: A firm in the forestry and paper products industry is facing operational challenges that are impacting its performance and profitability.

Read Full Case Study

Strategic Overhaul in Aerospace Defense Sector

Scenario: The organization is a mid-sized aerospace defense contractor grappling with outdated organizational structures and misaligned incentives that are impacting its ability to innovate and respond to market changes.

Read Full Case Study

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Related Questions

Here are our additional questions you may be interested in.

How does the McKinsey 7-S Framework support the identification and cultivation of innovation within an organization?
The McKinsey 7-S Framework aligns Strategy, Structure, Systems, Shared Values, Style, Skills, and Staff to create an environment conducive to Innovation within organizations. [Read full explanation]
How does the McKinsey 7-S Framework facilitate a company's agility and resilience in rapidly changing markets?
The McKinsey 7-S Framework enhances a company's agility and resilience by aligning Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff to adapt effectively to market changes, fostering continuous improvement, Operational Excellence, and a culture of innovation. [Read full explanation]
What role does the McKinsey 7-S Framework play in guiding mergers and acquisitions to ensure smooth integration and alignment?
The McKinsey 7-S Framework ensures M&A success by aligning Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff to achieve Strategic Alignment, Operational Excellence, and effective Performance Management. [Read full explanation]
What implications does the rise of artificial intelligence and machine learning have for the application of the McKinsey 7-S Framework in strategic planning?
The integration of AI and ML into Strategic Planning transforms the McKinsey 7-S Framework, enhancing Strategy, Structure, and Systems for competitive advantage, requiring careful planning and adaptation. [Read full explanation]
What role does the McKinsey 7-S Framework play in facilitating successful organizational redesign and restructuring?
The McKinsey 7-S Framework ensures successful organizational redesign and restructuring by aligning Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff for comprehensive change, effective change management, and enhanced performance. [Read full explanation]
How does the McKinsey 7-S Framework guide digital transformation strategies in established organizations?
The McKinsey 7-S Framework offers a holistic approach to Digital Transformation in established organizations by aligning Strategy, Structure, Systems, Shared Values, Skills, Style, and Staff towards digital success. [Read full explanation]

 
Joseph Robinson, New York

Operational Excellence, Management Consulting

This Q&A article was reviewed by Joseph Robinson. Joseph is the VP of Strategy at Flevy with expertise in Corporate Strategy and Operational Excellence. Prior to Flevy, Joseph worked at the Boston Consulting Group. He also has an MBA from MIT Sloan.

To cite this article, please use:

Source: "How can the McKinsey 7-S Framework be adapted to support organizations in navigating the challenges and opportunities of remote work?," Flevy Management Insights, Joseph Robinson, 2024




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